Organized retail crime: risks, prevention and more

What is organized retail crime?

Organized retail crime involves two or more individuals coordinating thefts against shops and stores. The group typically plans and executes targeted attacks against retail centers to steal specific goods and sell them at a profit.

Much of today’s ORC stems from criminal networks with a well-defined hierarchy, unlike the general retail theft definition, which describes actions as individual and opportunistic. Merchants in the United States lose an estimated $45 billion annually to professional theft, which has become the leading cause of shrinkage in the retail industry.

While general shoplifting, fraud and vandalism remain significant burdens for businesses, ORC has become a greater concern due to differences in practice. The main definers are below:

• Organized retail crime methods usually involve intricate planning and execution.
• Many group shoplifting plans have backing from criminal enterprises.
• There are sophisticated networks with defined processes and people from theft to resale.
• The scale and impact of organized retail crime cases are higher than those of general shoplifting.

Why is organized retail theft on the rise?

While general retail theft incidents are on the rise, the National Retail Federation conducted studies that found ORC to be a more urgent issue, with over 67% of retailers reporting coordinated theft and fraud against them between 2024 and 2025. Not only are the number of cases on the rise, but the sophistication of attacks is leading retailers to lose more inventory annually.

ORC has been growing steadily for decades, in parallel with the growing number of brick-and-mortar retail centers. However, the number of incidents has accelerated since the COVID-19 pandemic.

While the way retail staff report crimes makes pinpointing causes difficult, many retail leaders and security experts have identified several reasons for the rise in ORC. The leading causes are below:

• Lack of deterrence: The existing security systems in retail centers aren’t effective in deterring shoplifting. Thieves may understand that the lack of protection for goods and slow response can enable them to steal merchandise without consequences.
• Economic instability: Financial hardship brought by the pandemic and other factors may have led more people to engage in ORC to support themselves. Criminal enterprises can also exploit the current economic instability to attract more people into their networks.
• Shadow market: The growth in online marketplaces has enabled thieves to resell stolen goods with relative ease. Many of these resale platforms don’t require transparency measures, allowing networks to move and profit from the merchandise quickly.
• Insider collaboration: Employees with access to sensitive areas in retail centers are increasingly collaborating with thieves to steal high-value goods. They may understand gaps in the security system that enable theft without accountability.
• Ineffective enforcement: Slower response and follow-up investigations by both internal and external authorities can also contribute to the rise of ORC. The lack of legal consequences for theft can also be a driving factor.

Industries targeted by organized shoplifting

ORC groups tend to follow a pattern of preferred products to steal rather than target specific industries. Plans often include goods that are easily disposable, highly valuable and widely available.

However, the most common products stolen from surveyed retailers shed light on industries most targeted by ORC:

• Home improvement: Power tools and other home improvement items, such as wires and fittings, account for a significant share of items targeted by retail theft, making up over 26% of all stolen items. Their high value, small size and quick resale turnaround make them ideal products for ORC.
• Technology: Small, in-demand electronics, such as smartphones, headphones and portable home appliances, are among the most stolen items in retail. The growing demand for technology products will attract increasing interest from professional shoplifting networks.
• Fashion: Group shoplifters often target designer fashion because of its high value and demand. However, basic items, such as winter jackets and footwear, have become more appealing to shoplifters in recent years.
• Health and beauty: Health products such as allergy and pain medication, as well as other prescription medicines, are high on the list due to their small size and quick turnaround. Razor blades, cosmetics and fragrances are also frequently stolen by groups.
• Food and beverage: Luxury foods and drinks are often in considerable demand due to their limited availability, legal restrictions and perceived value. These commonly include prime meats and seafood, as well as alcohol and energy drinks.
• Tobacco: Group shoplifting efforts regularly target cigarettes, vapes and other tobacco products because of consistent consumer demand. The items are often safe products for shoplifters as they have a significantly fast turnaround.

The structure of ORC networks

The fundamental difference between general retail theft and ORC is the structure of the operation. Criminal enterprises engaged in shoplifting often have a process for stealing products that involves various assigned roles.

The style and execution of retail theft can vary as operations become more complex and sophisticated. However, the persons usually involved in an ORC operation are the following:

Coordinators

Coordinators are the individuals who organize operations, set targets, assign roles and manage the logistics behind the crimes. They are usually at the top of the hierarchy in an ORC network, responsible for the profitability of operations, making directive decisions and finding buyers.

Operatives

The operatives, also known as boosters, are the groups that conduct the planned operation by physically stealing goods, committing fraud or engaging in other actions to compromise a retail store’s security. They will action the plan created by the coordinators, such as a smash-and-grab attack or return fraud.

Couriers

Couriers are responsible for transporting goods throughout the operation. They can serve as immediate transport for operatives after shoplifting merchandise or as part of a broader logistics network, transferring products between warehouses or wholesalers.

Fences

Fences are the names of the buyers who will purchase the stolen merchandise after the operation is complete. They will either have a network of customers already willing to buy the products or they may list the goods on online marketplaces for profit.

Support

ORC operations will have an increasingly growing support network, depending on the scale of the operation. Many operatives targeting retail centers will have persons assigned as lookouts, insider contacts, listeners and specialists in fraud or distraction.

Other indirect support in an ORC network can be money launderers, forgers, security advisors and shadow finance specialists.

Five ways to deter organized retail crime

Retail establishments are dedicating more resources to mitigating ORC, including robust security solutions. 

Where traditional retail security systems relied on a more corrective, deterrence-based model, many organizations are switching to proactive, multi-layered security systems to detect and act on potential incidents before they occur, rather than after.

Here’s how retail businesses are using a comprehensive security strategy to deter retail crime:

• Advanced security systems: Integrating advanced retail security technology into a multi-layered strategy plays a crucial role in deterring crime. Security cameras assisted by artificial intelligence (AI), along with access control using credential readers and smart sensors, can help detect unusual activity and facilitate swifter responses.
• Regular staff training: Retail store employees can also help deter shoplifting with a more proactive approach. Regular training on what to watch and how to report suspicious behavior can be an effective part of a retail safety strategy.
• Law enforcement collaboration: Strengthening collaboration with local authorities can help create a more practical response to incidents. By leveraging advanced technology, shop managers and supervisors can share footage and data that could incriminate ORC suspects and lead to consequences.
• Strengthen theft policies: Retail store leaders and managers should collaborate to develop stronger policies to help protect goods and employees from retail theft and fraud. New policies can include high-value items locked in secure areas and implementing stricter return policies.
• Data insights: Implementing AI-assisted analytics platforms enables leaders to collect deeper insights into ORC deterrence. A data-driven security strategy enables organizations to continuously adjust and mitigate evolving retail threats and risks.

Combating Organized Retail Crime Act and other related legislation

Many local and federal institutions worldwide are aware of the uptick in organized retail crime statistics. The United States, for example, is actively seeking congressional support to allocate federal resources to help prevent organized retail theft.

The bill, called the Combating Organized Retail Crime Act (CORCA), aims to coordinate local, state and federal law enforcement to shape more effective ORC dismantling campaigns. Key elements of the act include:

• National ORC Center: The primary outcome of the legislation will be the creation of a ​“Center to Combat Organized Retail Crime and Supply Chain Crime” to unify efforts to tackle the surge in retail theft.
• Information sharing and collaboration: The Act will enable better information sharing and coordination regarding ORC activities between retailers and federal, state and local authorities.
• Targeted enforcement: Federal agencies will have improved legal capabilities and frameworks to prosecute interstate ORC operations and target the entire supply chain rather than just store theft.
• Tougher penalties: The CORCA will result in stronger penalties for groups responsible for large-scale ORC thefts.

Retail leaders have heralded the move as part of a bold new strategy to address the growing numbers and sophistication of ORC. 

The bill will run alongside other legislation, such as the Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers Act (INFORM Consumers Act), to deter the sale of stolen goods on third-party online marketplaces and address the broader ORC network.

The United States isn’t the only country passing such legislation. The United Kingdom is also reforming support for retailers with the Crime and Policing Bill, aiming to expand protections for goods and employees in the industry.

These are examples of a worldwide effort to mitigate ORC, with many countries, such as Australia and Canada, adopting similar legislation to address their concerning retail theft statistics.

Creating a comprehensive strategy to mitigate theft in retail

While combating ORC is a challenge for global retailers, advancements in technology and government legislation can enable retail centers to implement a proactive and comprehensive strategy to mitigate organized retail theft.

Security technologies that can detect unusual activity and enable swift action can help stores deter ORC attacks once consequences become apparent. With legislative support and faster response from authorities, the combined approach can be an effective tool in mitigating further incidents.