Organized retail crime (ORC) is a growing epidemic costing businesses billions each year. Partnering with law enforcement agencies and technology experts—like us at Leonardo—can help you build a powerhouse strategy that reduces losses and takes control. But it takes teamwork to make things happen.
So whether you're a small business retailer, shopping mall owner, distribution center manager, part of an organized retail theft prevention group, a private loss prevention investigator, a concerned citizen, or a police officer, this article is for you.
Let's get into it.
What is Organized Retail Crime?
We're starting here because many people underestimate its scale and impact, mistaking it for petty shoplifting, like stealing a tube of lipstick, rather than recognizing it as the massive calculated effort it is. So understanding what ORC entails is the first step to combating it effectively.
Organized retail crime refers to coordinated theft by groups of people—often part of larger criminal networks—who steal large quantities of high-value items with the intent to resell them. These groups range from regional groups to international crime enterprises, targeting both retail stores and supply chains. Some of the most commonly stolen products include perfumes, cosmetics, toiletries, electronics, handbags, and designer handbags.
On the Homeland Security Investigations (HSI) site, it says:
"OTGs [organized theft groups] illegally profit from systematically targeting retail establishments utilizing professional thieves known as 'boosters.' Often, boosters travel in crews throughout the country utilizing aliases, rental vehicles, and tools such as 'booster bags' and illegally acquired security keys to steal high-value merchandise."
Now here's how much it costs.
The Cost of Organized Retail Crime
Retail theft is not just an operational nuisance; it's a financial crisis. According to Capital One research:
- Stores lost $121.6 billion to theft in 2023 alone.
- Projections indicate losses could exceed $150 billion by 2026.
- 58% of organized retail crime involves cargo theft.
- Stores catch shoplifters only 2% of the time, and only 1 in 100 shoplifting incidents leads to an arrest.
- 40% of organized retail crime happens at the distribution center.
- 45% of organized retail crime happens en route from the distribution center to the store.
For small businesses, the impact is particularly devastating:
- At least 85.5% of small businesses experience retail theft annually.
- 74.8% of brick-and-mortar small businesses say they experience customers shoplifting monthly.
- 52.7% report shoplifting weekly or more frequently.
- They lose an average of $1,686 per month to shoplifting and organized crime.
So the billion-dollar question: How do we stop it?
Using Automatic License Plate Recognition Technology to Fight Organized Retail Crime
Traditional security measures struggle to keep pace with organized retail crime. This is where Automatic License Plate Readers (ALPR), like those we manufacture at Leonardo, come in. ALPR systems have become a game-changing tool for retailers and law enforcement agencies to combat ORC effectively.
Here's what you need to know:
Improved Apprehension Rates
ALPR systems enable rapid identification of vehicles associated with theft, leading to more suspect apprehensions and stolen goods recovered.
Disruption of Criminal Networks
By tracking patterns of criminal behavior, ALPRs provide crucial insights that help law enforcement dismantle crime rings.
Proactive Deterrence
The presence of ALPR systems deters criminals, reducing the likelihood of theft attempts.
Real-Time Alerts
With our ALPR technology, retailers and law enforcement receive real-time alerts for vehicles flagged in connection with prior incidents, enabling quick action.
Strategic Crime Prevention
The data collected from ALPR systems allows businesses to identify trends, plan resources effectively, and proactively protect assets.
The Best Part
When you choose Leonardo for your ALPR needs, you're not just investing in technology; you're gaining a trusted partner dedicated to your success.
We offer 24/7 technical support. Every hardware purchase comes with a one-year warranty and continuous software updates for optimal performance. We conduct site surveys and ensure all installations meet local and federal regulations. And, your data belongs to you. Leonardo ensures you maintain full control over how and with whom it’s shared.
Ready to stop organized retail crime? Contact us today.
