Across America, a new criminal enterprise is rising called organized retail theft. These are not run-of-the-mill shoplifting rings; rather, they are highly sophisticated networks that steal vast quantities of items for the sole purpose of reselling.
According to the National Retail Federation (NRF), “Organized retail crime can be a challenge to understand, as it is not a singular event or crime. It is also not limited to isolated acts of retail theft like shoplifting but can extend to crimes beyond a retail store environment.”
In 2024, the NRF released a study on the impact of retail theft and violence. The report found that since the pandemic, the retail industry is experiencing “a significant increase in theft and violence, presenting a major challenge for businesses of all sizes and types.”
Per the report, 76 percent of retailers said shoplifting related to organized retail crime (ORC) has increased over the past year. From 2022 to 2023, specific incidents of ORC increased by nearly 60 percent. Perhaps most stunning, “Retailers reported a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss due to shoplifting over the same time period.”
ORC is not only a scourge on retailers. In recent years, ORC groups have engaged in “cargo and supply chain theft from transportation centers, containers, trucks, distribution centers and warehouses.”
For instance, trains have become frequent targets for massive cargo thefts. The American Railroad Association estimates that railroad car robberies have increased by an astounding 60 percent from 2023 to 2024. Last year alone, more than 65,000 railroad cars were robbed.
Most experts cite the need for federal legislation to fight the rise of ORC due to the fact that many of these criminal gangs operate across state lines, and several are involved in transnational illicit activities.
This year, in a rare instance of bipartisanship, Congress has reintroduced legislation designed to dismantle these organizations. The Combating Organized Retail Crime Act, co-sponsored by Sen. Chuck Grassley (R-IA) and Sen. Catherine Cortez Masto (D-NV), aims to “crack down on flash mob robberies and intricate retail theft schemes.”
Essentially, the bill “would establish a coordinated multi-agency response and create new tools to tackle evolving trends in organized retail theft.” Under the auspices of the Department of Homeland Security, the Organized Retail and Supply Chain Crime Coordination Center would serve as a hub for collaboration, information-sharing, and investigations of ORC.
The bill, originally introduced in 2022, has received widespread support from businesses throughout the nation’s supply chain. UPS President of Global Affairs, Michael Kiely, said the bill “provides the necessary resources and coordination to protect the movement of American goods throughout our country while safeguarding the integrity of our national supply chain from rail to road, to retail.”
“The trucking industry takes great pride in delivering America’s freight safely and on time; however, the billions of tons of goods transported by trucks from coast to coast have increasingly become a prime target for organized crime rings, including transnational organizations, putting truck drivers at risk and raising costs for consumers,” said American Trucking Associations President and CEO Chris Spear.
The rise of ORC also impacts ordinary Americans, causing many to forgo in-person shopping altogether. A recent Fortune survey found that one in three Americans thinks retail crime is a “major concern,” while 58 percent say they prefer to shop online due to fears of ORC.
This warranted fear on behalf of shoppers is particularly acute among minorities. Sadly, “increased retail crime often results in heightened security measures, such as locked merchandise, limited store hours, or restricted access to high-value items,” explained Zencity CSO Michael Simon. “While these steps help prevent theft, they can also create friction in the shopping experience, frustrating consumers who value convenience and ease of access.”
The rise of ORC is having a profoundly negative effect on neighborhoods across the country. Even before the sudden rise in ORC, brick-and-mortar retailers were facing massive headwinds. As more retailers close, consumers lose options, governments lose revenue, and communities become blighted.
On a personal note, I witnessed a flash mob robbery at a CVS a few years ago. This took place in a ritzy suburb just north of Chicago. Stupidly, I confronted the group of bandits as they ran out of the store with their stolen merchandise and got into a waiting car. Even more dumb, I ran after the car, banging on it as they drove away. Looking back, that was not a great decision. However, as I saw these degenerates stealing these items, coupled with the looks of terror on the faces of the elderly employees at the front, I could not deter myself from doing something.
Stealing is wrong. It is not a victimless crime. We all pay the price one way or another.
Chris Talgo (ctalgo@heartland.org) is editorial director of The Heartland Institute.
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