The Connection Between Organized Retail Crime and Loss Prevention: What Retailers Need to Know

Learn how ORC is impacting retailers and how they can combat it.

Last Updated:
February 20, 2024
| ~
3
min Read
By
Kailey Boucher
,
Marketing Writer
,
LVT

When it’s time for my weekly grocery run, I always go in with a plan of attack. Groceries are expensive, and I want my money to stretch as far as possible. For example, I might buy toilet paper in bulk from one store but also stop at another store to buy a small carton of milk because I never finish a whole gallon before it expires. Sure, it takes some extra time and planning to shop this way, but why spend $150 when I could spend $100 instead? Can you blame me for loving a bargain? 

My methodical bargain hunting is completely legal and harmless, but unfortunately, there's an illegal kind of "bargain shopper" that poses significant risks to retailers, employees, and customers. 

Organized retail crime (ORC) groups hunt for vulnerabilities, plan calculated attacks, and steal large volumes of high-value products. Though these criminal groups may technically "get a good deal" by stealing and reselling products, their methods directly endanger retail employees and customers. 

Enter loss prevention experts, the heroes who take a vested interest in preventing ORC. They help retailers save money and, most importantly, protect the people that keep them in business. In this article, we’ll explore the landscape of ORC and take a deep dive into the critical role of loss prevention teams, their goals, and the measures they take to achieve them. 

WHAT IS ORGANIZED RETAIL CRIME?

Organized retail crime refers to large-scale theft and resale of consumer goods by criminal networks who intend to sell those goods for profit. 

We’re not talking about a single criminal committing a haphazard grab-and-go. Organized criminal networks operate with a level of calculated planning that distinguishes them from individual shoplifters. They meticulously plan their operations, often targeting high-value items and using advanced technology or inside knowledge to exploit vulnerabilities within retail systems. 

HOW ORC IMPACTS RETAILERS

Organized crime becomes a bigger problem with every passing year. According to the National Retail Foundation’s most recent Retail Security Survey, the average shrink rate in 2022 increased to 1.6%, amounting to $112.1 billion in losses.

As if the financial strain wasn't concerning enough, in recent years, retailers have witnessed a troubling shift towards more violent and aggressive tactics by these criminal groups. In 2023, 67% of retailers said ORC perpetrators were even more violent and aggressive than the previous year. 

Faced with this increasingly costly and hostile landscape, many retailers have had to make significant adjustments to their operations, including:

  • Reducing operating hours in some locations
  • Reducing the availability of certain products
  • Closing some store locations entirely

WHAT IS LOSS PREVENTION IN RETAIL? 

So, what is loss prevention, and what role does it play in the landscape of organized retail crime?

Loss prevention in retail refers to the strategies and practices employed by retailers to minimize theft, fraud, and inventory shrinkage, thereby protecting people and profits. It involves a combination of physical security measures, surveillance technology, employee training, and internal audits to detect and prevent shoplifting, organized retail crime, and more. 

To implement these efforts, retailers employ specialized loss prevention professionals. These experts act as the driving force behind retail security strategy. They conduct risk assessments to identify vulnerabilities, develop asset protection plans utilizing their expertise in areas like security systems, inventory control, and fraud detection.

THE PRIMARY GOALS OF LOSS PREVENTION TEAMS

Every day, loss prevention professionals gear up for battle, not just against theft, but to protect what's truly at the heart of retail—safety, trust, assets, and a smooth shopping experience. Here's a closer look at the goals that guide their efforts.

SAFEGUARDING PEOPLE

The foremost priority of loss prevention teams is the protection of employees and customers. As ORC incidents grow in frequency and severity, these teams work to create and maintain secure spaces through proactive measures. After all, assets can be replaced—lives cannot.

PRESERVING CUSTOMER TRUST

Successful retail businesses are built on a foundation of trust, and nothing destroys customer trust more quickly than an unsafe shopping experience. Loss prevention teams play a crucial role in creating safe environments, positive customer experiences, and in fostering customer loyalty. 

SHIELDING COMPANY ASSETS 

While protecting people is always the top priority, loss prevention teams also focus on safeguarding company assets. By implementing strategies to prevent merchandise theft, minimize facility damage, and reduce financial losses, these teams play an indispensable role in protecting retailers’ bottom lines. 

SUPPORTING OPERATIONS

Loss prevention teams help oversee everything from  supply chain logistics to in-store experiences. Maintaining smooth operations is a huge goal, though, and it requires a united front. Collaboration between retailers to fight ORC is crucial, as it allows for sharing intelligence, strategies, and resources, and enhances the effectiveness of loss prevention efforts across the board. 

HOW LVT HELPS LOSS PREVENTION TEAMS COMBAT ORC

Organized criminal groups are smart. To stay ahead, loss prevention teams need solutions that are smarter. Here are a few ways LVT helps retailers gain the upper hand. 

REAL-TIME VIGILANCE

Real-time video monitoring is a game-changer for loss prevention. By keeping a constant watch on everything that happens on your lot, you can act at the first sign of suspicious behavior. It’s like having an extra set of eyes everywhere, all the time. 

AI-POWERED ANALYTICS 

With LVT, you can harness the power of analytics and artificial intelligence to not just react to ORC attacks but anticipate them. By analyzing patterns and trends in criminal activity, LVT helps you allocate security resources effectively, so you always have protection where and when it matters most.

MOBILITY AND FLEXIBILITY

ORC doesn’t just happen inside the store; it often starts in the parking lot. Our mobile surveillance cameras can be strategically placed just about anywhere on your lot so you can monitor and respond to suspicious activities before they reach your store doors. 

READY TO GIVE LVT A TRY?

Criminals are becoming increasingly sophisticated in their attacks against retailers, but the good news is that technological advancements are keeping pace. In other words, loss prevention teams don’t have to do it alone. 

If you’re looking for the best way to protect your retail business against organized crime, you’ve come to the right place. Contact our team today to learn how we can help you take your loss prevention efforts to the next level.

More Posts You'll Love