Although some retail and law enforcement lobbyists cite eye-popping figures, there is reason to doubt organized retail theft is anywhere near as large or widespread as they say. SamAugustDean reports:
to develop strategies to fight organized retail crime. Police and prosecutors say criminal justice reforms need to be rolled back to deter smash-and-grabs.
Asked how the organization arrived at that figure, a CRA staffer said that “there’s no way of knowing exactly” how much organized retail crime affects the bottom line of businesses. The staffer said the estimate was based on a back-of-the-napkin calculation: If organized retail thieves steal $70 billion annually, and California accounts for 10% of the U.S., California’s losses add up to $7 billion, meaning the Bay Area “is likely in the billions itself.
When asked where that number came from, Rich Rossman, vice president of CLEAR and sergeant with the Broward County Sheriff’s Office, said that it was pulled from the National Retail Federation’s report. But the NRF puts all losses to theft and fraud from all sources at around $45 billion, not losses to organized retail crime.
Its latest report found that total “shrink” — the industry term for all inventory losses from theft and fraud, internal and external, as well as paperwork errors — grew from 1.4% to 1.6% of sales on average from 2015 to 2020. The estimated portion of those losses coming from organized retail crime grew from 0.045% to 0.07% in the same timeframe., that puts estimates for total shrink at $49.6 billion and losses to organized retail crime at $2.1 billion nationwide.
The Retail Industry Leaders Assn. released its own report, which put that nearly $70-billion price tag on total retail crime, in late November as part of its campaign with a spin-off group, the Buy Safe America Coalition, to lobby for a federal bill that would make it more difficult for people to anonymously sell goods on internet marketplaces.
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