On an episode of the “Retail’s Most Wanted” podcast, Mike Combs, former Director of Asset Protection, Organized Retail Crime, and Central Investigations Team at The Home Depot, stated that organized retail crime is, “not a theft for need—it’s a theft for greed.” Organized retail crime, or ORC, is an ugly reality that is sweeping the country. But unlike traditional shoplifting where a thief may take a few items for personal need or gain, ORC is much larger and much more serious. It is stealing to make a profit.
Everyday people may say that these thieves are taking from corporations that can afford it or that their crimes don’t really hurt anyone—a “victimless crime.” What they don’t realize is that ORC actually hurts everyone with day-to-day things like higher prices on household goods or even with an increase in other crimes in their communities.
In fact, it’s estimated that ORC costs federal and state governments almost $15 billion in lost tax revenue, which does not include lost sales taxes. Also, as retailers are forced to raise prices to cover the cost of stolen goods, it’s estimated that the average American will pay more than $500 annually in additional costs.
Organized retail criminals aren’t just stealing a single pack of gum at a time. Instead, they are stealing thousands, even hundreds of thousands of dollars’ worth of goods each time they strike. This doesn’t account for the drastic increase in ORC incidents that happened during the COVID-19 pandemic.
But ORC’s impact is much darker than lost taxes, lost sales, and higher prices.
Former Executive Associate Director of Homeland Security Investigations, Steve Francis, said: “Organized retail crime is leading to more brazen and more violent attacks in retail stores throughout the country. Many of the criminal rings orchestrating these thefts are also involved in other serious criminal activity such as human trafficking, narcotics trafficking, weapon trafficking, and more. Tackling this growing threat is important to the safety of store employees, customers, and communities across the country.”
Society may claim that ORC is only a small annoyance—the poor taking from the rich. But the reality is much more sinister than this Robin Hood scenario. These gangs are exploiting their profits to commit even more serious crimes. They aren’t stealing because they need something to eat or a way to stay warm. They are stealing to make a profit and to fund other illicit activities.
The leaders of these rings are also exploiting those who do the actual stealing, also known as “boosters.” These boosters are often drug addicts looking to fund their next fix or others in desperate circumstances who are willing to risk some jail time for a small payout.
Much like the significant rise in ORC numbers, there is a rise in criminal activity across the board:
- There were 64,142 drug cases reported in the 2022 fiscal year.
- Americans spend almost $150 billion on cannabis, cocaine, heroin, and methamphetamine per year.
- 37.3 million Americans are current illegal drug users.
- 13.5% of Americans used drugs in the last month, an increase of 3.8% YoY.
- There are an estimated 24.9 million human trafficking victims in the United States.
- 3.6 million people in the Americas are in forced labor situations.
- The homeless population in the United States rose 12.1% from 2022 to 2023.
With added exposure to issues surrounding the fight against ORC, we can continue to make positive and lasting change. According to a survey from the National Retail Federation (NRF), 70.8% of respondents reported an increase in ORC events but 52.4% of retailers surveyed are increasing their budgets for loss prevention and technology. Also, Combs said, “Most of these [ORC] cases are across jurisdictions. It’s really hard for a little city or local county to work a case that goes all the way across the state—sometimes across state lines.”
That’s why it’s essential for retailers, law enforcement, district attorneys, and local governments to work together. The criminals aren’t working alone, so those of us who are combatting their efforts have to come together. Only then can we stop these thefts of greed and protect our communities.
