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 DataRationale
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 DataRationale
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 DataRationale
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 DataRationale
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 DataRationale
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 DataRationale
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 DataRationale
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.

34% of organized retail thefts are designer clothes

Important takeaway:

Insight from DataRationale
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 DataRationale
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 DataRationale
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