Retail crime continues to escalate, threatening small businesses and American jobs, prompting calls for stronger law enforcement measures.
Story Highlights
- Organized retail crime (ORC) is a growing threat in the U.S., with significant economic impacts.
- Retailers reported over $112 billion in losses due to theft in 2022.
- ORC is increasingly prioritized by retailers and law enforcement as a critical issue.
Organized Retail Crime: A Growing Threat
Organized retail crime (ORC) has become a significant concern in the United States, affecting retailers and communities. The FBI identifies ORC as a “gateway crime” linked to larger criminal enterprises. In recent years, 78% of retailers have prioritized combating this threat more than ever before. The distinction between ORC and individual shoplifting is crucial, as ORC involves large-scale theft for resale, posing a more serious challenge to retail security.
ORC incidents are not just a retail problem but a community issue, impacting local economies and job security. With retailers losing an estimated $112 billion in 2022 due to inventory shrinkage, largely driven by theft, the economic implications are severe. This loss not only affects business profitability but also consumer prices, as companies struggle to offset stolen inventory costs.
Impact on Retail Industry and Workforce
As ORC continues to rise, its impact extends beyond financial losses, prompting some stores to close their doors permanently. In San Francisco’s Union Square, 20 retailers have shut down since 2020, with many citing organized retail theft as a primary reason. This trend threatens jobs and economic stability in affected areas, highlighting the need for effective policy responses.
The human cost of retail crime is also significant, with retail workers accounting for over a quarter of all workplace homicide victims in 2020. This alarming statistic underscores the urgent need for enhanced security measures and better protection for those who work in the retail sector.
Calls for Action and Policy Reform
Conservative voices are calling for stronger law enforcement actions and policy reforms to address the ORC threat. Proposals include increasing penalties for organized theft and enhancing collaboration between retailers and law enforcement agencies. Such measures aim to deter criminal activities and protect American jobs and communities.
Organized retail crimes directly cost the US nearly $130 billion annually. They affect the cost of goods, public safety, and even national security.
— Congressman Brad Knott (@RepKnott) January 15, 2026
I'm proud to work with my @JudiciaryGOP colleagues to address this critical issue through the Combating Organized Retail Crime… pic.twitter.com/pU5waDJ3by
As ORC remains a pressing issue, it is imperative that policymakers and law enforcement work together to develop comprehensive strategies that safeguard businesses and communities. The future of the retail industry and the livelihoods of countless Americans depend on decisive and effective action against this growing menace.
Sources:
Impact of Organized Retail Crime on the Retail Industry
An All-Hazards Approach to Retail Security and Safety
Robbed in a Flash: Assessing Risk for Mass Smash-and-Grab Incidents