Organized retail crime

In the UK, respondents to the British Retail Consortium's annual crime survey for the financial year 2013-2014 estimated that organized retail crime accounted for 40% of all shop thefts.{{cite web|url=https://www.bbc.co.uk/news/business-30889846 |title=Retail crime in UK at 10-year high, industry report says |publisher=BBC News |date=2015-01-20 |accessdate=2015-11-22}}

The Retail Council of Canada claimed in 2023 that organized retail crime "costs Canadians retailers around $5 billion per year."{{cite web | title=Organized retail theft can involve violence, as Toronto police warn shoppers ahead of holiday season | website=Toronto Star | date=2023-10-03 | url=https://www.thestar.com/news/gta/organized-retail-theft-can-involve-violence-as-toronto-police-warn-shoppers-ahead-of-holiday-season/article_d81c4b48-7bad-5d07-aa87-3029dc2ef10d.html | access-date=2023-12-08}}

The National Retail Association says: "Individuals are often assumed to be working alone when shoplifting however, commonly they are not working alone but with others who create distractions whilst goods are stolen, in order to meet the requirements of the crime ring leader".{{cite web |title=Organised Crime & Gangs |url=https://www.nationalretail.org.au/policy-advocacy/safe-retail/organised-crime-gangs/ |website=National Retail Association |access-date=9 November 2023 |location=Australia}}

Organized retail crime rose by 2023, when Nordstrom,{{cite news |title=Nordstrom in Los Angeles ransacked by mob of nearly 50 people |url=https://www.today.com/video/nordstrom-in-los-angeles-ransacked-by-large-smash-and-grab-mob-190766661943 |access-date=8 November 2023 |work=TODAY.com |date=14 August 2023 |language=en}} Macy’s, and Old Navy{{cite news |last1=Dobrosielski |first1=Chelsea |title=Thieves Steal Macy's, Old Navy Clothing as Analysts See 'Turning Point' for Retail Shrink |url=https://sourcingjournal.com/topics/retail/thieves-steal-macys-old-navy-clothing-ubs-retail-shrink-walmart-target-california-orc-441253/#recipient_hashed=b5af6c17a9ad14ed0bf03769ad1ce5025f767e82739a8292c6ad973dd01fa7c0&recipient_salt=e6a1f217839290c57aae0c613c50eabc57d41569bad59b9b0367b915bb4ed104 |access-date=8 November 2023 |work=Sourcing Journal |date=22 June 2023}} all publicized major organized shoplifting activity. Target claimed in September 2023 that theft and organized retail crime helped drive its $500 million decrease in annual profits. Some store branches of major chains were closed.{{cite news |last1=Kavilanz |first1=Parija |title=This isn't theft of need. A more insidious type of crime is pushing some stores to close {{!}} CNN Business |url=https://www.cnn.com/2023/09/27/business/target-store-closures-retail-crime/index.html#:~:text=Target%2C%20which%20operates%20nearly%202%2C000,uphill%20battle%20to%20contain%20crime. |access-date=8 November 2023 |work=CNN |date=27 September 2023 |language=en}}

Theft had risen to $70 billion in 2020, according to the Retail Industry Leaders Association (RILA). A pattern emerged of crime rings consisting of two parts—persons who would steal a high volume of goods from multiple stores, and others who would sell the stolen goods, sometimes via online marketplaces, converting them into cash. Walmart and Amazon posted banners on their websites asking their customers to report products for sale on other sites that they believed to have been stolen, in line with a new U.S. law that went into effect in June 2023.{{cite news |last1=Cavale |first1=Siddharth |title=Explainer: 'Organized' retail crime: a 'multi-billion dollar problem' |url=https://www.reuters.com/business/retail-consumer/organized-retail-crime-multi-billion-dollar-problem-2023-06-29/ |access-date=8 November 2023 |work=Reuters |date=29 June 2023 |language=en}}

However, the National Retail Federation (NRF) said that same month that the effect of theft on retailers’ bottom lines was about the same as in previous years, with total retail shrinkage at $112 billion in 2022 (1.55% of sales), up from $93.9 billion (1.44% of sales) in 2021. External theft, including organized retail crime, represented 36% of losses, versus 37% in 2021. Other contributors were employee/internal theft (29%), and process/control failures (26%).{{cite news |last1=Reagan |first1=Courtney |title=Retail theft isn't actually increasing much, major industry study finds |url=https://www.cnbc.com/2023/09/26/organized-retail-crime-and-theft-not-increasing-much-nrf-study-finds.html |access-date=8 November 2023 |work=CNBC |date=26 September 2023 |language=en}}

From 2022 through August 2023, 9 U.S. states passed laws to impose harsher penalties for organized retail crime offenses.{{cite news |last1=Fonrouge |first1=Gabrielle |title=Retailers are shaping a wave of laws to crack down on organized theft — here's how they do it |url=https://www.cnbc.com/2023/08/11/organized-retail-crime-nine-states-pass-laws-to-crack-down-on-theft.html |access-date=8 November 2023 |work=CNBC |date=11 August 2023 |language=en}}

California made organized retail theft a distinct crime.{{Cite news |last=Williams |first=Paige |date=2024-03-18 |title=The Crime Rings Stealing Everything from Purses to Power Tools |url=https://www.newyorker.com/magazine/2024/03/25/the-crime-rings-stealing-everything-from-purses-to-power-tools |work=The New Yorker |language=en-US |issn=0028-792X}} In 2024, California lawmakers proposed expanding penalties for individuals involved in organized retail theft.{{Cite web |date=2024-02-16 |title=Democratic lawmakers introduce legislation to target organized retail theft, online resellers |url=https://www.latimes.com/california/story/2024-02-15/democratic-lawmakers-introduce-legislation-to-target-organized-retail-theft-online-resellers |website=Los Angeles Times |language=en-US}}

In early 2008 in Florida, a single shoplifting investigation turned up a massive organized enterprise. Operating for at least five years, criminals had stolen up to $100 million in medicine, health and beauty goods.{{cite web|last=Walter |first=Shoshana |url=http://www.theledger.com/article/20080125/NEWS/801250440/1039 |title=Multimillion-dollar Theft Ring is Broken | theledger.com | The Ledger | Lakeland, FL |publisher=The Ledger |date=2008-01-25 |accessdate=2012-01-29}}

Texas FBI agents pulled over a rental truck, leading them to $2.7 million in stolen assets. The goods included $1 million in stolen baby formula that was stored in rodent-infested garages with no temperature control.{{cite web|last=Siljander |first=Raymond P. |url=http://www.securitymanagement.com/article/retailers-organize-against-crime?page=0%2C1 |title=Retailers Organize Against Crime |publisher=Security Management |date= |accessdate=2012-01-29}}

In January 2013, in Pennsylvania, West York Police (York County) announced the arrest of over 130 people and the organizer of a major organized retail crime ring in which the individuals targeted over 90 stores at over 300 locations in 5 counties in Pennsylvania and 2 counties in northern Maryland, with an estimated loss to retailers at $1 million.

In December 2023, husband and wife Kenneth and Michelle Mack were arrested in the San Diego area on charges of operating a retail crime empire centered on shoplifting. The Macks resold cosmetics worth $8 million, stolen by a dozen women from Ulta, Sephora and other stores, on Amazon.{{cite web | last=Fonrouge | first=Gabrielle | last2=Zamost | first2=Scott | last3=Reagan | first3=Courtney | title=Inside the organized crime rings plaguing retailers including Ulta, T.J. Maxx and Walgreens | website=CNBC | date=2024-03-12 | url=https://www.cnbc.com/2024/03/12/inside-organized-crime-rings-targeting-retailers-ulta-tjx-walgreens.html}} In July 2024, the Macks pleaded guilty to organized retail theft and conspiring to commit organized retail theft.{{cite web | last=Vargas | first=Ramon Antonio | title=California woman pleads guilty to running $8m cosmetics retail theft ring | website=the Guardian | date=2024-07-17 | url=https://www.theguardian.com/us-news/article/2024/jul/17/california-retail-theft-ring | access-date=2024-07-19}} They were each sentenced to five years and four months in prison and required to pay $3 million in restitution.{{cite web | last=Zamost | first=Scott | title=Retail crime ‘queenpin' faces five years in prison, millions in restitution | website=NBC New York | date=2024-07-19 | url=https://www.nbcnewyork.com/news/business/money-report/retail-crime-queenpin-faces-five-years-in-prison-millions-in-restitution/5612447/ | access-date=2024-07-19}}

On July 15, 2008, Reps. Brad Ellsworth, D-Indiana, and Jim Jordan, R-Ohio, introduced the Organized Retail Crime Act of 2008{{cite web|url=http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h6491ih.txt.pdf |title=FDsys - Browse Congressional Bills |publisher=Frwebgate.access.gpo.gov |date= |accessdate=2013-03-16}} that would make it a felony to engage in activities that further organized retail crime. Specific and narrow obligations upon on-line marketplaces known to be used by high-volume sellers of stolen merchandise are also included to benefit legitimate online businesses.[http://www.ellsworth.house.gov/index.php?option=com_content&task=view&id=367&Itemid=1 The Online Office of Congressman Brad Ellsworth - July 15, 2008: Ellsworth, Jordan Introduce Bill to Fight Organized Retail Crime, Protect Online Consumers]

On August 1, 2008, Sen. Dick Durbin, D-Ill. introduced the Combating Organized Retail Crime Act of 2008 that would give law enforcement the ability to prosecute, among other things.

In January 2023, Sen. Chuck Grassley, R-Iowa, and Sen. Catherine Cortez Masto, D-Nevada, introduced [https://www.congress.gov/bill/118th-congress/house-bill/895 the Combating Organized Retail Crime Act (S. 140)], which would update current federal criminal penalties related to organized retail crime and establish a new law enforcement coordination center within Homeland Security Investigations at the Department of Homeland Security to improve coordination between federal, state and local law enforcement agencies. Companion legislation was introduced later in 2023 in the House of Representatives (H.R. 895), sponsored by Reps. Ken Buck, David P. Joyce, Susie Lee and Dina Titus is co-sponsored by nearly 70 other representatives. This legislation is supported by the NRF and other retail industry groups.{{cite web | url=https://nrf.com/blog/rising-toll-organized-retail-crime | title=The rising toll of organized retail crime | date=28 August 2023 }}

In December 2023, NRF retracted a claim it had made in April that "nearly half" of retail inventory shrinkage in 2021 was attributable to ORC. Data actually showed that 37% of shrinkage was attributable to all external theft, not limited to ORC.{{cite news |last1=Fonrouge |first1=Gabrielle |title=Retail lobby group's retraction of key crime claim shows how hard it is to track theft |url=https://www.cnbc.com/2023/12/07/us-retail-lobbyists-retract-key-claim-on-organized-retail-crime-accounting-for-inventory-losses.html |publisher=CNBC |date=December 7, 2023}}

Some criminal organizations are multi-national (or trans-national) with operations in and between several different countries.{{Citation

| last =

| first =

| title = Major Middle Eastern Crime Ring Dismantled

| publisher = FBI

| publication-date = 2013

| url = https://www.fbi.gov/news/stories/major-middle-eastern-crime-ring-dismantled

| access-date = 11 November 2023

}} ACAMS, Largest International Financial Crime Prevention Community Worldwide, has said: “Organized retail crime (ORC) is a low-risk, high-reward business line for transnational criminal organizations’ portfolios, that presents a significant financial and public safety risk".{{Citation

| last =

| first =

| title = Organized Theft Groups and Organized Retail Crime

| publisher =ACAMS

| publication-date = 2023

| url = https://www.acams.org/en/organized-retail-crime#about-our-partner-03eb5237

| access-date = 14 October 2023}} They indicate that one type of operation is for criminal operatives to smuggle destitute people into a country and have them pay for their transport by conducting directed retail shop lifting, often moving from city to city.

{{Reflist}}

• [https://www.ice.gov/features/op-boiling-point Homeland Security Investigations, Operation Boiling Point]
• [https://www.acams.org/en/organized-retail-crime Organized Theft Groups and Organized Retail Crime, ACAMS]
• [https://nrf.com/advocacy/policy-issues/organized-retail-crime National Retail Federation, Organized Retail Crime]
• [https://www.fbi.gov/news/stories/2013/march/major-middle-eastern-crime-ring-dismantled/major-middle-eastern-crime-ring-dismantled Major Middle Eastern Crime Ring Dismantled], FBI

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Category:Theft

Category:Organized crime in the United States

Category:Organized crime activity

Category:Retailing-related crime