A survey conducted of America’s largest retailers reports an increase in retail crime associated with an economy in distress, said the Retail Industry Leaders Association (RILA).
As a follow up to the December 2008 Crime Trends Survey, RILA asked retail loss prevention professionals to report measured or perceived changes in crimes against retailers over the last four months. Respondents included 32 of the largest and most successful retailers in the U.S., from all segments including grocery, mass merchant, specialty store, apparel, electronics and appliances and fabric and craft retail.
The RILA Crime Trends Survey, presented today at the RILA 2009 Loss Prevention, Auditing & Safety Conference in Orlando, FL, reports continued growth in amateur or opportunistic shoplifting events, financial fraud, robberies and burglaries as well as large increases in organized retail crime (ORC) across all retail segments.
Retailers also report upward trends in regions not typically prone to such increases. Complex cities and highly urbanized states are often the first to display increases in unlawful activity. However, survey results show that increases have permeated beyond these regions and onto a number of non-traditional and rural areas.
“These crimes present unwelcomed challenges to retailers and communities of all sizes,” said Paul Jones, vice president of asset protection.
Trends indicate that instances of organized retail crime (ORC) activity also continue to grow. ORC, which is estimated to cost retailers tens of billions of dollars annually, involves sophisticated crime rings that steal and stockpile stolen merchandise; eventually selling the stolen goods to buyers usually unaware of the item’s pathway to market. Stolen merchandise is sold through flea markets, swap meets, pawn shops and increasingly through internet auction sites. Unlike simple shoplifting or other crimes of opportunity, ORC growth is less likely to decline on their own as the economy improves. The criminal enterprises associated with ORC become reliant on the revenue derived from the commission of this crime. The increase in ORC is particularly troubling as these criminal enterprises often use the proceeds derived from ORC to fund additional crimes.
“These trends confirm that retail criminals are seeking to capitalize on the current economic climate to expand their activities. Their resulting ability to fund other crimes should be a concern to everyone,” added Jones.
The reported increases in retail crime come despite an extraordinary investment and effort by the industry to prevent these crimes. The Global Retail Theft Barometer, published by the Centre for Retail Research, estimated U.S. retailers spent $11.799 billion in 2007 on loss prevention efforts.
Continued collaboration and partnership with law enforcement are identified as key tactics to halting these increases. Industry partnerships such as the Coalition Against Organized Retail Crime’s effort to enact federal legislation aimed at combating ORC are critical to deterring this criminal activity. Three bills currently under consideration in Congress would protect consumers and communities by providing law enforcement with the tools necessary to stop this growing criminal activity. The bills, which have garnered bipartisan support, include The Combating Organized Retail Crime Act of 2009 (S. 470) introduced by Sen. Richard Durbin (D-IL), The Organized Retail Crime Act of 2009 (HR 1173) introduced by Congressman Brad Ellsworth (D-IN) and the E-Fencing Enforcement Act of 2009 (HR 1166) introduced by Congressman Bobby Scott (D-VA).
For more information on organized retail crime and the risks it poses to consumers and communities please visit www.orcawareness.com.
The Retail Industry Leaders Association (RILA) promotes consumer choice and economic freedom through public policy and industry operational excellence. Its members include the largest and most successful retailers operating in the U.S.--which together provide millions of jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
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Brian Dodge SVP, Communications & State Affairs Phone: 703-600-2017 Email: brian.dodge@rila.org