The National Retail Federation (NRF) has released its 2023 National Retail Security Survey, which revealed that retail crime caused over $112 billion in losses for the industry in 2022. As a result, NRF is calling for policy changes to combat organized retail crime (ORC).
According to the survey conducted in partnership with the Loss Prevention Research Council, policy initiatives such as eliminating cash bail and raising the felony threshold for theft may have contributed to the increase in ORC. In areas that have eliminated cash bail, 67% of survey respondents reported seeing an increase in repeat offenders. Additionally, 72% of respondents in areas that have raised the felony theft threshold noticed an increase in the average value per theft incident.
NRF Vice President for Asset Protection and Retail Operations David Johnston expressed concern over the escalating situation, stating, "Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire." He emphasized that the violence and safety concerns associated with these crimes are a priority for all retailers, regardless of size or category.
The cities and metropolitan areas most affected by ORC in 2022 were Los Angeles, San Francisco/Oakland, Houston, New York, and Seattle. The stolen products vary widely, ranging from expensive luxury goods to everyday items.
As a consequence of the rising retail crime, retailers have had to dedicate more resources to deter and prevent theft. More than a third of survey respondents reported increasing their workers' payroll to support their risks. Additionally, over half of the respondents increased their technology solutions budget. Furthermore, 46% of retailers have augmented their spending on third-party security personnel, and 54% have enhanced their employee workplace violence training.
The NRF is now urging policymakers to make changes that would help combat organized retail crime and mitigate its impact on the industry. By addressing factors that may contribute to the rise in ORC, such as cash bail and felony thresholds, the NRF hopes to create a safer retail environment for both employees and customers.
