Organized shoplifting, flash mobs and smash and grabs aren’t new phenomenon, but the tactics, methods and timing criminals are employing today are changing. In response, retailers are stepping up their loss prevention strategies with help from new technology, community resources and evolving best practices.

“I’ve been at this for over three decades, and shoplifting was always viewed as the invisible crime. They would go in, steal one or a few items, conceal it and try to leave without being recognized,” said David Johnston, vice president of asset protection and retail operations for the National Retail Federation.

Organized retail crime (ORC), in particular, used to occur during non-operating hours, while mobs were most likely to loot during times of civil unrest.

“The challenge now is we’re seeing all of that happening during operating hours, and even the shoplifting itself has become less invisible and much more open and brazen,” Johnston said.

What’s more, the same shoplifter might return several times, and the level and threat of violence has escalated as well.

“This has all really happened, predominantly over the last five years, give or take that quiet period of COVID-19, and more specifically coming out of COVID, to what we see today,” Johnston said.

The Retail Industry Leaders Association (RILA) also sees ORC as an evolving trend that impacts retailers.

“(ORC) involves groups systematically stealing large quantities of merchandise with the intent to resell,” explained Khris Hamlin, vice president of asset protection, RILA. “ORC has become more sophisticated, often involving complex networks that operate across state lines and even internationally. The rise of online marketplaces has provided an easier avenue for these groups to offload stolen goods to unsuspecting consumers.”

What’s more, over the past few years, these crimes have evolved to become increasingly calculated, better executed and more frequent.

ORC today isn’t just targeting large national brands either. “It impacts segments that go from the mass merchants all the way down to a convenience store,” Johnston said.

Johnston pointed out ORC groups vary in scope and scale, and investigations at the local and federal levels show that networks vary dramatically in terms of who they target and how they resell the merchandise.

In the case of convenience stores, ORC entails targeting key resaleable items — such as alcoholic beverages, cigarettes, and health and beauty care items — that once stolen can be quickly resold, sometimes at a location mere blocks from where they were stolen.

“There have been some investigations completed in large metropolitan areas where the stolen goods would never leave the city limits. They would just be resold back to another independent business,” Johnston said.

Stolen alcohol, for example, might make its way to a local bar for resale.

Trends Driving Crime

Several trends have been converging since before the pandemic to create an environment where theft has flourished.

“Economic downturns and financial instability have contributed to more individuals participating in ORC as a means of income,” Hamlin said. “Online marketplaces and social media platforms have made it easier for criminals to quickly and anonymously sell stolen goods. And, compared to other criminal activities, retail theft carries relatively low penalties, which can make it an attractive option for organized crime groups.” 

Johnston agreed, adding that increases in homelessness and drug addiction that are impacting some communities are additional contributing factors.

“It is the afflicted and the addicted that oftentimes these organized groups (target) to be … their shoplifters,” Johnston said. “I think we can also look at the laws that have been changed in many cities where some property crimes, which shoplifting or larceny are considered, are no longer arrestable or considered to the degree that they were from an enforcement standpoint.”

Fighting Back

With the level of violence on the rise, retailers are working to better protect employees and customers. One of the most important things that retailers can do from a safety and security standpoint is invest in employee training.

“We’ve seen a lot of retailers across all segments increase their violence prevention, their de-escalation, their disengagement, even where many have altered their policies to not even stop or seek to apprehend shoplifters, just to become a better witness for law enforcement,” Johnston said. He pointed out that every time a shoplifter is apprehended, that individual could potentially become violent.

Another tactic is altering the store environment to make shoplifting more difficult. “We call it crime prevention through environmental design,” Johnston said.

Some c-stores have moved from a two-door entrance to a single entrance, while stores with a double door may lock one side. Others are reconfiguring the interior space to remove blind spots, changing the layout to make it harder to steal high-value items and adding cameras to high-theft areas of the store, such as the alcoholic beverage section.

Some stores opt for private security while others encourage the presence of local police officers — on or off duty — by offering them free merchandise or coffee. In extreme situations, deploying a canine unit can be more of a deterrent for some shoplifters, Johnston noted.

Locking Up Merchandise

Some retailers have resorted to putting high-value items under lock and key.

“The method helps deter theft and manage inventory more effectively by making it harder for would-be thieves to access these items without assistance. It can also help reduce shrinkage,” Hamlin said.

Johnston agreed that locking up products can be a necessary solution in certain environments, but he added retailers don’t want to lock up their merchandise.

“Retailers know that it impacts the shopper experience. … It also is impacting their sales and drives some customers away, but it’s necessary given some of the types of incidents that are going on,” Johnston said.

He pointed to the example of shoplifters shelf sweeping entire rows of medicine or baby formula, noting it’s important to ensure those items are available to customers who need them.

“On the one hand, it can create a sense of security for customers, knowing that the store is taking steps to prevent theft,” Hamlin said of locking devices. “On the other hand, if not managed carefully, it can potentially frustrate shoppers who may find the process of retrieving items to be inconvenient or time-consuming. Ultimately, it’s another difficult decision retailers are faced with as they look for ways to combat crime and keep stores safe.”

One possible workaround some retailers are evaluating is implementing self-service technology that would allow loyalty members to access locked cases using their smartphone, Johnston pointed out.

Others are employing anti-sweep displays that only allow one or two items to be removed at a time.

Tech Solutions Expand

Technology is a key theft prevention tool. “Retailers have been upgrading CCTV (closed-circuit television) systems and leveraging more high-definition cameras and thermal imaging to monitor store activities more effectively and deter potential thieves,” Hamlin said.

He added that retailers today are more open to adopting artificial intelligence (AI) and machine learning technologies to predict and prevent theft. “These systems can analyze patterns and detect suspicious behavior in real time,” Hamlin noted.

“AI and machine learning are going to start to be adopted in a lot of the technologies we use, but (current) applications include enhanced CCTV technology, license plate readers, vehicle descriptors and identifiers, as well as any sort of data analytics and the attempts to provide some sort of link analysis to support investigations,” Johnston said.

Retailers are joining forces, sharing data across platforms and using link analysis to connect crimes in different locations through pictures, license plate images or other indicators, with help from AI and machine learning, and working as a group to engage law enforcement, he explained.

Police, for example, are employing license plate readers throughout communities in order to identify stolen vehicles.

“Law enforcement might have one of these units sitting in a high-crime area, and they may get an alert that a vehicle that just drove up to a convenience store is known to have been used in a shoplifting event at the mall down the street. So they may be able to respond quicker to potentially a new crime,” he said.

Radio frequency identification (RFID) chips are another tactic being used across different retail segments.

“The use of RFID and devices for inventory tracking has become more adoptable in helping retailers maintain accurate inventory records and reduce shrinkage,” Hamlin said.

“In previous years, RFID had challenges with being placed on things involving liquids or even cigarettes because of the foil inside the packages,” Johnston said. “But we are starting to hear more retailers piloting RFID in other areas. I do think that with costs coming down, with the labels and the chips getting better, we’re going to start to see more of it involved in alcohol and tobacco and even smaller items.”

Placing body cameras on store associates is another strategy in the early stages of adoption in the U.S. but widely used in the UK and Australia, Johnston noted.

While Johnston hasn’t seen the data, he’s heard anecdotally that it has made a difference for some retailers. Early adopters see it as a way to discourage bad behavior.

“Reports from retailers indicate a noticeable reduction in violent incidents when body cameras are deployed,” Hamlin agreed. “These devices have proven effective in enhancing safety, and improving customer interactions, providing a valuable tool for both violence prevention and evidence gathering.”

But Johnston cautioned that we’re a long way from being able to measure the effectiveness of the technology across the retail industry.

Follow Best Practices

Loss prevention doesn’t have to be expensive. Focusing on best practices can do a lot to move the needle on deterring theft.

First and foremost, Johnston pointed to the importance of tracking and reporting incidents with as much detail as possible and reporting them to law enforcement. Employee training is also key to ensure associates have violence prevention de-escalation techniques.

“Educating employees about loss prevention techniques and creating a culture of vigilance is crucial,” Hamlin agreed. “Training to recognize suspicious behavior, proper handling of merchandise and effective customer service strategies can deter theft.”

Johnston noted simply greeting customers within 15 seconds of them entering the store and offering assistance is an example of a positive deterrent.

“Building relationships with local law enforcement and local prosecutors can enhance collaboration, strategy and mitigation of theft-related events,” Hamlin added. “(Some) retailers are also taking a holistic approach to combating organized retail crime via the Vibrant Communities Initiative, led by RILA and the National District Attorneys Association.”

The initiative unites district attorneys, police departments, social service organizations and other stakeholders to identify effective approaches for dealing with ORC, habitual theft, violence, vagrancy and blight in and around retail stores, Hamlin explained.

“Ultimately, by working together, we’re identifying ways to restore vibrancy to communities across the country,” Hamlin said.

“Work with your community. Work with law enforcement to help them with what they need to protect your business and community,” Johnston advised retailers. “Work with your local government and advocate for the issues that are taking place. And then, work with your peers across segments, so it’s not just a c-store working with a c-store. Build relationships, partner together and advocate for yourself.”