Organized Retail Crime (ORC) remains a major issue for retailers, driven by repeat offenders and organized groups seeking financial gain, not personal need. While some retailers have seen a decrease in shoplifting and merchandise theft incidents between 2024 and 2025 due to enhanced security measures, the overall sophistication of ORC is increasing. This includes a rise in phone scams (70% of retailers), digital and e-commerce frauds (55%), shoplifting and merchandise theft (52%), and cargo or supply chain thefts (50%) in 2025 alone. These criminal enterprises operate across state lines and increasingly, transnationally, with 66% of retailers reporting transnational ORC involvement since 2024.
ORC extends beyond traditional in-store theft to complex schemes like hijacked freight shipments, tampered gift cards, and even hacking into computer systems to redirect merchandise trucks. For instance, in April, the Los Angeles Police Department seized approximately $1 million in stolen merchandise, including products from brands such as ALO, SKIMS, and Dyson, tied to an e-commerce resale scheme. Despite a slight decrease in overall shoplifting incidents reported by some, the amount stolen per incident has been increasing, with 50% of retailers reporting a rise in repeat offender activity and 40% experiencing an increase in ORC-related shoplifting.
The economic impact on both national and small businesses is substantial, but ORC also jeopardizes the safety of employees and customers, with retailers reporting increasing frequency of violence and homelessness-related incidents. Collaboration between retailers and law enforcement is improving but is hampered by limited resources, cross-jurisdictional challenges, and a lack of information sharing. This complex landscape underscores the urgent need for federal legislation, such as the Combating Organized Retail Crime Act of 2025 (S. 1404/H.R. 2853), which would establish a national task force and a coordination center to enhance intelligence sharing and investigative capabilities. Ninety percent of retailers agree that federal action is crucial to address this evolving threat.
