Organized retail crime (ORC) remains a significant concern for retailers, with criminal enterprises adapting and employing increasingly sophisticated tactics. These groups are moving beyond traditional shoplifting to include methods like phone scams, gift card fraud, cargo theft, and even hacking into supply chain computer systems to redirect shipments. Retailers report a rise in these diverse methods, with over half experiencing increases in phone scams (70%), digital and e-commerce frauds (55%), shoplifting and merchandise theft (52%), and cargo or supply chain thefts (50%) by ORC groups in 2025. This multi-layered approach often involves "boosters" stealing items, and "fences" reselling them through various channels, almost never for personal consumption but for financial gain.
While some data indicates a slight decrease in overall shoplifting incidents (12.4% decrease between 2024 and 2025) and merchandise theft incidents (8.1% decrease) attributed to retailers' protective efforts, repeat offender activity and ORC-related shoplifting continue to rise. Fifty percent of retailers reported an increase in repeat offenders, and 40% saw a rise in ORC-related shoplifting. The total economic loss from ORC in the U.S. is estimated at over $125 billion, with Georgia alone experiencing over $1.6 billion in stolen goods in 2021, resulting in approximately $325 million in lost tax revenue. Home Depot, for example, closed about 600 ORC cases annually and recently uncovered an alleged ring that stole over $7 million in electrical merchandise, filing 45 felony counts against the alleged leader.
Retailers are intensifying their efforts to combat ORC, investing in technology, employee training, and security measures. Many have dedicated ORC divisions, like Home Depot's 80-person team, including former federal agents, and high-tech investigation centers. Collaboration between retailers and law enforcement is also strengthening, but it is often hampered by limited resources, the cross-jurisdictional nature of these crimes, and a lack of information sharing among agencies. Sixty-one percent of retailers cited limited law enforcement resources as a major obstacle, while 49% pointed to cross-jurisdictional thefts and lack of multi-agency information sharing.
In response to the evolving nature of ORC, states are passing new legislation to create criminal offenses, increase penalties, and establish specialized task forces. More than a dozen states have enacted such laws this year, focusing on newer forms of fraud like cargo theft and gift card scams. Federal action is also being sought, with the proposed bipartisan Combating Organized Retail Crime Act aiming to create a national task force. Sixty-six percent of retailers reported transnational ORC involvement in thefts against their companies since 2024, highlighting the need for coordinated federal action.
Despite the challenges, authorities have seen successes; for instance, California officials announced over 32,000 arrests and nearly $260 million in recovered stolen goods since October 2023, following investments in law enforcement and legislation. The Los Angeles Police Department recently seized approximately $1 million in stolen merchandise from a Van Nuys warehouse, linked to an e-commerce resale scheme. These efforts underscore the ongoing battle against ORC, which continues to pose a significant threat to retailers, employees, and customers.
