Retailers nationwide confronted with high instances of organized theft and criminal activities, affected in near total capacity.
In a recent report by the National Retail Federation (NRF), it has been revealed that organized retail crime poses a significant challenge to the retail industry. The report, which surveyed various retailers, has shown that 97% of retailers have experienced organized retail crime in the past year.
One of the key findings of the report is the increase in retailers revising their approach to address trespassing, with 24% of retailers making changes in this regard. This is in response to the 68% of retailers who have seen an increase in organized retail theft.
The report also highlighted the issue of stolen goods being returned for store credit, typically for gift cards. Shockingly, 51% of retailers have found those gift cards for sale online. This has led to 44% of retailers planning to increase their loss prevention spending, and 56% of retailers setting aside more technological resources to combat organized retail crime.
The average loss for retailers due to organized retail theft is significant, with retailers losing $703,320 for every $1 billion in sales. The report also indicated that 73% of retailers have lost merchandise due to cargo theft.
In an effort to combat these issues, companies like Avery Dennison and Kenco Label & Tag Co. have developed new solutions. Avery Dennison introduced a new Kenco LP label type in June, which helps retailers monitor products during storage and return processes, preventing theft, price manipulation, and false returns without damaging clothing. Kenco Label & Tag Co. and Primera Technology have also debuted a new Kenco-LP tag to help retailers track products and combat shrinkage.
Retailers are also committing more resources and constantly evolving their tactics to fight organized retail crime, as stated by Bob Moraca, NRF Vice President of Loss Prevention. In addition to revising their loss prevention strategies, retailers are also changing their return policies (38%), point-of-sale policies (37%), and reviewing their employee screening practices (27%).
Last year, another NRF report estimated that shrinkage totaled $50.6 billion, with robberies being the top cause. However, the new report indicates that 59% of theft occurred on the way to distribution centers, highlighting the need for increased security measures throughout the supply chain.
Sixty-five percent of retail respondents consider organized retail crime a higher priority compared to five years ago, reflecting the growing concern within the industry. The report serves as a call to action for retailers to continually improve their loss prevention strategies and collaborate with law enforcement to combat organized retail crime.
