Organized Retail Crime (ORC) is becoming a growing concern, with retailers witnessing an average 26.5% increase in ORC incidents in 2021.
The crime wave led to a substantial $94 billion in inventory loss in 2022, and a worrying 75.9% of retailers have reported employee assault.
Recognizing the prevalence of this issue, let me share the most crucial organized retail crime statistics you should be aware of right away. 🚨📊
Organized Retail Crime Statistics: The Key Data
- Organized retail crime has caused $125.7 billion in lost economic activity and a loss of 658,375 jobs.
- Organized retail crime accounts for 1.47% of retailer sales.
- ORC caused $94 billion in inventory loss in 2022, and 75.9% of retailers reported employee assault.
- 56% of small retailers reported theft in 2021.
- The average theft case value was $1180 in 2021.
- In 2021, retailers saw an average 26.5% increase in ORC incidents.
- 8 out of 10 retailers reported more violence and aggression last year.
- 34% of organized retail thefts are designer clothes.
- Organized retail crime lost an average of $719,548 for every $1 billion in sales.
- Organized retail crime has cost the federal, state, and local governments $14.9 billion in lost taxes.
Sources: (Ri Last Age Media, NRF, ICSC, Washington Examiner, Statista, Investors, US Chamber, Legal Jobs, USA Today, Loss Prevention Media.)
Learn More: Retail Trends
Organized Retail Crime Strips $125.7B from Economy, Eliminating 658K Jobs.
Important takeaway:
Insight from Data | Rationale |
Significant economic impact. | The $125.7 billion loss indicates a major setback in the economic ecosystem surrounding the retail industry. |
High job loss. | The loss of 658,375 jobs not only affects individuals but has ripple effects in local communities and economies. |
Urgent need for intervention. | Such significant economic and job losses suggest an immediate need for strategies and solutions to curb this crime. |
Source: Ri Last Age Media
Retailers Bleed: ORC Siphons 1.47% of Total Sales.
Important takeaway:
Insight from Data | Rationale |
Notable proportion of sales affected. | At 1.47%, this isn’t a negligible figure; it represents a substantial impact on overall retailer sales. |
Retail margins are compromised. | Even a small percentage can translate to significant revenue losses given the tight margins in retail. |
Retailers need preventive strategies. | With nearly 1.5% of sales affected, there’s a clear call to action for retailers to implement preventive measures. |
Source: NRF
$94B Inventory Loss in 2022: ORC Assaults 75.9% of Retail Employees.
Important takeaway:
Insight from Data | Rationale |
Massive inventory losses due to ORC. | A staggering $94 billion loss underscores the severity and scale of organized retail crime on businesses’ bottom line. |
Alarming rate of employee victimization. | The fact that 75.9% of retailers reported employee assault indicates a significant threat to workplace safety and morale. |
Necessity for enhanced security measures. | Given the profound financial and human impact, there’s an evident and immediate need to fortify retail security protocols. |
Source: ICSC
Small Retailers at Risk: 56% Report Theft Incidents in 2021.
Important takeaway:
Insight from Data | Rationale |
Over half of small retailers affected. | With 56% reporting theft, it’s evident that a majority of small retailers faced security breaches in their operations. |
Small businesses are vulnerable targets. | This significant percentage suggests that small businesses might be seen as easier or more accessible targets for thieves. |
Enhanced protection measures are imperative. | Given the prevalence of theft, small retailers urgently need to consider bolstering their security and theft-prevention strategies. |
Source: Washington Examiner
Steep Spike: Average Retail Theft Value Hits $1180 in 2021.
Important takeaway:
Insight from Data | Rationale |
Significant financial hit per theft incident. | At $1180 per case, each theft incident represents a considerable financial setback, especially for small and medium retailers. |
Theft isn’t merely a small-scale issue. | Such a high average indicates that many thefts are not minor but involve high-value goods or occur in large quantities. |
Need for high-value item security enhancement. | Retailers should prioritize the security of high-ticket items, given that thefts can have such a substantial financial impact. |
Source: Statista
Alarming ORC Surge: Retailers Witness 26.5% Uptick in 2021 Incidents.
Important takeaway:
Insight from Data | Rationale |
Sharp rise in organized retail crime activity. | An average increase of 26.5% represents a significant escalation, pointing to a growing trend in ORC threats for retailers. |
Retail environment’s vulnerability intensified. | The marked upswing suggests that the retail environment has become more susceptible or attractive for organized criminals. |
Urgent reevaluation of security measures needed. | Given the pronounced increase, retailers must urgently reassess and reinforce their existing security and deterrence protocols. |
Source: Investors
Safety at Stake: 80% Retailers Report Heightened Aggression and Violence.
Important takeaway:
Insight from Data | Rationale |
Overwhelming majority impacted by heightened threat. | With 8 out of 10 retailers reporting more violence, it’s evident that this is a widespread concern across the retail industry. |
Retail spaces increasingly hazardous. | Such significant reports suggest that retail environments are becoming increasingly perilous for employees and customers alike. |
Immediate need for conflict resolution training. | In light of the surge in aggression, retailers must prioritize training staff in de-escalation techniques and safety protocols. |
Source: US Chamber
Designer Clothes: Prime Target with 34% of Organized Retail Thefts.
Important takeaway:
Insight from Data | Rationale |
Designer clothes are prime targets. | The fact that 34% of ORC thefts pertain to designer clothes indicates a specific demand or lucrative resale market for these items. |
Higher value goods at increased risk. | This statistic underscores that items of greater value or brand recognition, such as designer clothes, are particularly vulnerable. |
Heightened security measures for luxury items needed. | Retailers dealing in premium apparel should bolster surveillance and protective measures to guard against this prevalent threat. |
Source: Legal Jobs
Huge Dents in Revenue: ORC Drains $719.5K per $1B in Sales.
Important takeaway:
Insight from Data | Rationale |
Significant erosion of sales revenue. | A loss of $719,548 for every $1 billion in sales represents a substantial dent in potential profits for retail businesses. |
ORC threatens retail viability. | Such significant losses can imperil the financial health and viability of retailers, especially those with narrow profit margins. |
Imperative for enhanced anti-theft strategies. | Given the pronounced financial impact, it is critical for retailers to invest in advanced loss prevention and security measures. |
Source: USA Today
Tax Void: ORC Crime Results in $14.9B Loss for Government Coffers.
Important takeaway:
Insight from Data | Rationale |
Considerable drain on public finances. | A loss of $14.9 billion in taxes is a significant blow to governmental budgets, affecting public services and infrastructure projects. |
Broad impact beyond retail sector. | Such tax losses emphasize that the repercussions of ORC extend beyond businesses, directly affecting government operations and the public. |
Necessity for government-industry collaboration. | Given the substantial tax revenue at stake, there’s a clear imperative for governments and retailers to join forces in combating ORC. |
Source: Loss Prevention Media