Organized retail crime is the large-scale theft of retail merchandise with the intent to sell the items for financial gain. ORC typically involves a criminal enterprise employing a group of individuals who steal large quantities of merchandise from across the retail enterprise and a fencing operation that converts the stolen goods into cash. Stolen items are then sold through various venues (online, flea markets, pawn shops, back to retail), with the proceeds sometimes even being used for more nefarious crimes.
Learn more about how ORC affects retailers and shoppers.
ORC-related violence and theft continue to affect the retail industry, particularly in the last two years. The economic impact on national and small business retailers is significant, but the broader consequence is that these crimes jeopardize the safety of store employees and customers.
Retail loss prevention teams and state and local law enforcement have initiatives in place to investigate ORC groups and build cases but are frequently hampered by lack of visibility into the scope of retail crime groups’ broader activities. ORC groups frequently operate across state lines, often engage in multiple types of criminal activities simultaneously and, in many cases, extend their operations internationally. The transnational nature of ORC highlights the need for coordinated federal action to effectively address and disrupt these criminal enterprises on a larger scale.
The retail industry plays a critical role in supporting local communities and economies, offering jobs, providing access to essential goods and contributing to charitable causes. However, the increasing losses from theft and ORC extend far beyond financial impacts.
Organized retail crime is on the rise. Join us and tell Congress to act now.
While theft undoubtedly affects retailer margins, the surge in violence associated with these crimes has become a major concern. Retailers' top priority is to ensure the safety of both associates and customers. According to “The Impact of Retail Theft & Violence 2024” report, 73% of retailers reported that shoplifters have become more aggressive and violent over the past year, with 84% expressing heightened concern about the violence occurring during theft incidents.
ORC and related thefts cannot be solved by the retail industry alone. Addressing this issue requires collaboration between retailers, law enforcement, prosecutors, community leaders and legislators, with action needed at local, state and national levels.
Learn more about the evolution of theft and violence in today's retail crime landscape in this study, conducted in partnership with the Loss Prevention Research Council and sponsored by Sensormatic Solutions.
NRF continues to ask Congress to provide federal support against ORC, working to strengthen local and state efforts against these criminal groups. ORC groups operate across varying scope and scale, using online and physical distribution channels to sell stolen goods, taking profit and product beyond U.S. borders. That’s why 94% of retailers view federal legislation as a necessity to effectively combat organized retail crime.
NRF strongly supported the Combating Organized Retail Crime Act of 2023 in both the House and Senate and asks the 119th Congress to introduce and pass similar legislation. It would establish a new Organized Retail Crime Coordination Center to align counter-ORC activities nationally and internationally by developing national-level ORC intelligence, facilitating information sharing and cross-agency investigations and serving as a center of expertise for training and technical assistance.
This effort builds upon the passage of the bipartisan INFORM Consumers Act of 2022, which NRF advocated for on behalf of the industry. The INFORM Act brought market transparency to high-volume third-party sellers on online marketplaces, addressing the sale of counterfeit goods. While a positive step, marketplace transparency alone will not eliminate ORC.
At the state level, more than 30 laws have been amended or created since 2022 to specifically support investigations and prosecutions related to ORC. These efforts have bolstered law enforcement’s ability to target and dismantle ORC networks; however, the problem remains complex.
NRF supports ORC prevention efforts through education, alliances and other regional efforts. NRF’s ORC/Investigators’ Network brings together more than 1,000 retail asset protection professionals, law enforcement and prosecutors to share information, develop strategies and form partnerships to identify, detect and disrupt ORC groups. ORC is also a key focus area of NRF PROTECT, NRF’s annual loss prevention and asset protection conference.
For media inquiries about organized retail crime, please email press@nrf.com or call 855-NRF-PRESS.
Take a deep dive into ORC to discover more about the issue, how it differs from shoplifting and why it matters to consumers today.
What is organized retail crime?
Organized retail crime is the large-scale theft of retail merchandise or digital goods with the intent to distribute and sell the items for financial gain. ORC is often confused with individual crimes and thefts like shoplifting, cargo theft and online frauds; all of these crimes can be in support of ORC groups.
ORC typically involves a criminal enterprise or group of individuals, working in a coordinated structure and directing the theft of goods in large quantities for the purpose of selling those goods into the marketplace for profit. These ORC groups utilize certain structures or hierarchies to conduct theft operations and eventual sale of stolen goods. Common ORC roles include:
Shoplifters, boosters or fraudsters that conduct the original thefts. These individuals may be directed to steal specific merchandise or target specific locations
Stolen goods are then ‘sold’ to a fencing location for pennies on the dollar. This location takes in the goods and begins its movement back to the consumer.
Product is then moved through ORC distribution channels, where the items may be sold on online platforms or marketplaces or even back to physical local retail stores, flea markets or other marketplaces.
Larger, transnational ORC groups may move product or proceeds beyond U.S. borders, shipping stolen goods to other countries for sale.
Some groups use ORC as a means of supporting or engaging in collateral crimes such as drug and weapon trafficking and human smuggling.
What is the difference between ORC and shoplifting?
The retail industry has been dealing with shoplifting, including “professional shoplifters” for decades. Historically, shoplifting was known as an invisible crime; an individual or few stealing specific goods by concealing merchandise and attempting to leave the store unnoticed. Many thefts were due to personal need – food, clothing or items to help individuals burdened with personal hardships, afflictions or addictions. This is viewed as a crime of need, where ORC has really become a crime of greed.
According to NRF’s 2024 report, “The Impact of Retail Theft and Violence,” retailers experienced a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss to shoplifting during that same period. Retailers are also impacted by a higher number of repeated offenders and a more diverse range of targeted goods stolen per incident. These are all indicators that individuals are stealing more for “greed” not individual need.
Efforts by retail loss prevention teams and law enforcement at local, state and federal levels continue to learn more about crimes supporting ORC groups. Often challenging, these investigations take considerable time, intelligence gathering and resources to identify ORC groups, which may engage in local to transnational activity. Shoplifting is also not the only crime committed in support of ORC. Cargo theft, refund and return frauds, e-Commerce and gift card frauds losses are crimes that can be attributed to supporting ORC groups.
Why does ORC matter to consumers?
Consumers rely on the retail industry to provide safe, available and affordable products. When theft occurs at higher frequencies, these goods become unavailable for purchase.
Stolen goods, particularly perishables or date-sensitive products, can be dangerous when expiration dates are altered or removed or the products are not stored properly, such as in a temperature-controlled environment. To maintain product integrity, retailers are forced to take drastic measures—removing goods from shelves or locking them behind security barriers. These actions, although necessary, drive up costs for retailers and degrade the shopping experience for consumers.
These measures have real consequences, with increased security costs leading to higher prices, a less enjoyable shopping experience, and lost sales. As consumers, we should ask ourselves what has changed in the retail environment that has caused them to take these drastic security measures?