Businesses Urgently Seek Congressional Action to Combat Retail Crime

Retail crime has increasingly captured the attention of the public, especially as shocking videos of shoplifters flooding local news broadcasts become more prevalent. These clips often show individuals filling bags with stolen merchandise and exiting stores without fear. As a result, consumers now often encounter locked plastic cases in supermarkets and retail stores, complicating the simple act of purchasing everyday items like razors, medicine, and soap.

While this heightened security might seem like a minor inconvenience, the impact of organized retail crime on businesses and consumers is severe. Estimates suggest that organized retail theft results in the loss of hundreds of millions of dollars worth of inventory annually. Retailers now allocate significant portions of their budgets to security measures, enhanced technology, and increased insurance, costs that inevitably trickle down to the consumer.

Yet, it is clear that retailers cannot tackle this multifaceted issue alone. As inflation and tariffs exacerbate the cost of goods, customers deserve a retail experience where products are readily accessible and prices remain stable. In order to achieve these goals, collaboration among retailers, law enforcement, and online marketplaces, such as eBay, is essential to combat organized retail crime effectively.

Understanding Organized Retail Crime

Organized retail crime involves coordinated actions by groups of thieves aiming to steal significant quantities of merchandise. The stolen items are typically resold either at flea markets or through networks known as “fences.” This illegal activity poses a grave threat to retailers across the nation.

The Statistics Speak Loudly

Recent reports emphasize the seriousness of organized retail crime. A December survey by the National Retail Federation revealed a staggering 93 percent increase in the average number of shoplifting incidents from 2019 to 2023, alongside a 90 percent uptick in monetary losses attributed to these thefts. More than 75 percent of surveyed retailers expressed heightened concerns regarding organized retail crime compared to previous years. Additionally, the increase in thefts has been correlated with a disturbing rise in violence within retail spaces.

The Retail Response

In response to these soaring theft rates, many retailers have resorted to drastic measures. These include reducing in-store inventory and employing the now-familiar plastic lockers. Some establishments have even resorted to cutting operating hours or closing altogether, actions that might deter crime but significantly hinder the shopping experience for consumers. These additional barriers ultimately lead to higher prices in an economy already struggling with inflation.

eBay’s Role in the Fight Against Retail Crime

From its vantage point, eBay has directly witnessed the challenges posed by organized retail crime. For nearly two decades, the company has collaborated with retailers, law enforcement, and government officials to dismantle criminal networks engaged in theft.

One of eBay’s flagship initiatives, Partnering with Retailers Offensively Against Crime and Theft (PROACT), fosters relationships that result in more cohesive investigations and effective prosecutions of suspected offenders. In 2023, PROACT’s efforts alone helped halt an estimated $50 million in potential losses at CVS locations throughout the year.

Collaboration as the Key to Success

This experience underscores a pivotal truth: no single entity can eradicate organized retail crime in isolation. Effective deterrence demands robust cooperation among e-commerce platforms, retailers, law enforcement agencies, and legislative bodies. Law enforcement must be equipped with the necessary legal tools to pursue the sophisticated syndicates operating behind organized retail theft.

Legislative Action on the Horizon

In an encouraging step toward addressing the crisis, Iowa Senator Chuck Grassley and Nevada Senator Catherine Cortez Masto have introduced the Combating Organized Retail Crime Act (CORCA). This proposed legislation aims to respond to the increasing incidents of theft and fraud targeting retail stores as well as their supply chains.

CORCA enhances law enforcement’s legal tools and establishes the Organized Retail and Supply Chain Crime Coordination Center within the Department of Homeland Security. This center would focus on galvanizing responses to organized retail crime while also fostering collaboration between the public sector and private industries for information sharing and joint investigations.

A Call to Action

Passing the CORCA is a critical milestone in the ongoing battle against organized retail crime. With the assistance of Congress, along with sustained collaboration across the retail sector, law enforcement agencies, and prosecutorial offices, it is possible to significantly reduce organized retail crime. Such efforts would not only safeguard businesses but also contribute to more reasonable pricing for consumers.

Despite the potential benefits, one sector may oppose these measures: manufacturers of plastic lock boxes. Nevertheless, the fight against organized retail crime requires an unwavering commitment to creating a secure environment for both retailers and customers alike.