What is Organized Retail Crime?
Organized Retail Crime (ORC) refers to groups, gangs and sometimes individuals who are engaged in illegally obtaining retail merchandise through both theft and fraud as part of a criminal enterprise. These crime rings generally consist of "boosters" - who methodically steal merchandise from retail stores - and fence operators who convert the product to cash or drugs as part of the criminal enterprise. Phoenix has continued to be identified one of the top cities in the United States for Organized Retail Crime.
The National Retail Federation (NRF) 2020 Organized Retail Crime Survey reports, Organized Retail Crime continues to present a serious challenge to the retail industry. Every year, the vast majority of retailers surveyed report being a victim of ORC, and 2020 is no different. This year, 75% of retailers surveyed stated they saw increases in ORC losses within the past 12 months. Despite retailers' best efforts, the industry has yet to see a meaningful reduction in the impact of these crimes.
This represents a significant cost for retailers. Respondents to the 2020 survey report losing $719,548 per $1 billion in annual sales volume due to ORC activity in the past 12 months. While it can vary from year to year, this is the fifth year in a row it has topped $700K.
The Response
Partnerships between law enforcement and retail investigators have formed to combat ORC. These associations share cross-jurisdictional information to identify, disrupt, and apprehend Organized Retail Crime crews.
AZORCA is a statewide crime-fighting partnership. This association allows retailers, law enforcement and prosecutorial bodies at local, county, state and federal levels to communicate about criminal activity impacting businesses on a real-time basis while preventing other partners from being victimized. In partnership with the case management provider Auror, AZ ORCA is able to provide real-time criminal intelligence for it’s members. Through this collaborative partnership, law enforcement, legislators, and the business community will be able to work together to identify offenders and resolve cases, all while developing new and innovative ways to combat ORC networks.
