This week, several members of Congress appeared in a hearing this week to discuss large, organized retail crime, which has escalated in recent years. In the hearing, experts shared how retail crime has risen astronomically in recent years.
“Generally, organized retail crime involves the association of two or more persons engaged in illegally obtaining merchandise of value from retail establishments, through theft and/or fraud, as part of a criminal enterprise. This is not the same thing as shoplifting or petty theft, both of which are also illegal,” House Homeland Security Subcommittee on Counterterrorism, Law Enforcement, and Intelligence Chairman August Pfluger (R-TX), said at the hearing.
“This type of organized activity involves multiple occurrences and may transpire across various stores and state jurisdictions, further complicating matters for law enforcement agencies to combat these crimes,” he added. “It has been said that organized retail crime is overblown. That is false. We cannot remain oblivious to the surge in organized retail crime throughout the country impacting every one of our districts.”
In the hearing, Pfluger noted that the National Retail Federation surveyed over 230 retail asset protection professionals and found that 90 percent of them indicated that organized retail crime is more of a risk now than three years ago.
“This surge in retail theft is more than just teenagers looking for a thrill, but an abuse of soft on crime policies and evidence of a deeper-rooted issue, driving crime and fear amongst our communities,” he said.
David Johnston, the vice president of asset protection and retail operations at the National Retail Federation, shared in the hearing that some retailers have reported “increases of 100 percent or more” in organized retail crime over the last year, including injuries and deaths. Last week, in Philadelphia, a Macy’s security guard was stabbed to death by someone attempting to shoplift, which he noted.
Victim: Eric Harrison , 27 pic.twitter.com/wjKSIAsiSJ
— PhillyCrimeUpdate (@PhillyCrimeUpd) December 6, 2023
“Employees are fearful. No employee should wish to go to work and fear for their job. No employee should have to quit and leave a job for fear,” he explained.
"We are all victims of organized retail crime."
— House Homeland GOP (@HomelandGOP) December 13, 2023
- David Johnston of the National Retail Federation pic.twitter.com/8icv9gDJWA
“When taken as a percentage of total retail sales in 2022, retail shrink accounted for $112.1 billion in losses, up from $93.9 billion in 2021, according to the 2023 National Retail Security Survey. Retailers reported that ORC remains a significant concern due to heightened levels of violence. More than two-thirds (67%) of respondents said they were seeing even more violence and aggression from ORC perpetrators compared with a year ago,” a written testimony submitted from the National Retail Federation stated.
In the hearing, Home Depot Vice President of Asset Protection Scott Glenn asked Congress to pass legislation to combat organized retail crime groups.
“Retailers are not exaggerating the problem of theft. We know firsthand that the impact has grown significantly,” he said. “There is a myth that these ORC rings happen only in big cities. Unfortunately, criminals and bad actors don’t discriminate when it comes to targeting stores, and organized retail crime is happening everywhere – in urban and suburban areas and everywhere in between.”
"These individuals are becoming increasingly aggressive," Glenn added. "They are dangerous and often care little about any consequence other than getting out of the store with as much product as possible. Our associates have been threatened with knives, guns, and other physical attacks.”
"Despite these efforts, the problem continues, and we have tragically even lost associates to these encounters," Glenn said, noting that the company supports the bipartisan Combatting Organized Retail Crime Act.
“As a professional in the field of protecting customers and associates, I ask that all members of congress work together to ensure that the Combatting Organized Retail Crime Act urgently becomes the law of the land to help stop these senseless crimes in our communities,” he said.