Understanding Organized Retail Crime: What Businesses Need to Know
The rise in retail crime across Canada has made retail security a top-of-mind issue for businesses and law enforcement. Winnipeg, which experienced Canada’s highest robbery rates in 2023, is launching a “safe shopping initiative” this holiday season, aiming to reduce retail theft by deploying additional police officers to malls and shopping centres in the city, as reported by CityNews Winnipeg. In Kamloops, RCMP officers are educating retailers on how to prevent shoplifting this holiday season and in Toronto, police continue to crack down on violent retail thefts.
While community engagement and law enforcement intervention are steps in the right direction when it comes to combating retail theft, businesses see the best chance of proactive success when they hire high-quality retail security and loss prevention teams. In this blog, we’ll discuss how retail businesses can protect themselves through retail security strategies.
What is Organized Retail Crime?
Distinct from typical shoplifters, who most commonly steal items for personal use, organized retail crime (ORC) is professional shoplifting involving groups of individuals stealing from stores with the intention of selling items at a profit on the black market or secondary market. These markets may include flea markets, pawnshops, and online marketplaces like eBay, Craigslist, and Facebook Marketplace.
ORC operations typically involve two groups: ‘boosters’ who conduct the retail thefts, and 'fences' who receive and resell the stolen merchandise at a profit. Stolen merchandise is commonly distributed across nationwide networks, making inventory recovery difficult. ORC groups are often involved in other syndicated crime schemes, such as fraud, human trafficking, drug distribution, and money laundering.
The Dangers of Organized Retail Crime
According to the National Retail Federation’s National Retail Security Survey, inventory shrinkage (unaccounted loss of merchandise) represented $112.1 billion in losses for the retail industry in 2022 alone. This impacts the operations of individual retailers and can drive up prices for legitimate consumers.
In addition to retail profit losses, ORC leads to unsafe shopping and working environments. ORC members execute thefts quickly and will often run into and out of stores to secure their stolen goods, with little regard for legitimate customers who may be injured in the process. Store workers who attempt to obstruct a thief’s path may also become victims of ORC violence.
Most Frequently Stolen Retail Items by ORC Groups
ORC groups most often target items that have a high resale value on the black market. Amir Anvarizadeh, National Training and Development Manager at Blackbird Security, weighed in: “ORC groups most often steal designer and luxury goods with recognizable brand names, even if those items aren’t the most expensive in the store. For example, if a store carries a Gucci perfume and an expensive niche perfume, ORC will target the Gucci item based on brand recognition.”
Additionally, thieves look for goods that are easy to transport on foot or with a getaway vehicle, and due to their systematic, precise nature, organized thefts take place in a matter of minutes or even seconds.
Some of the most commonly stolen items by ORC groups include:
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Designer winter jackets
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Perfumes, colognes, and fragrances
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Sunglasses
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Handbags
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Consumer electronics
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Small appliances like blenders and espresso machines
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Jewelry
Retail Security: The Rise in Jewelry Theft in Ontario
Among the businesses most heavily impacted by organized retail crime are jewelry stores, particularly in Ontario, with a reported surge in jewelry thefts from just 10 in 2023 to 41 in 2024. While Ontario regional police have been taking steps to arrest and charge organized retail crime members, many jewelry business owners fear for their livelihoods and are seeking solutions.
Unlike larger items such as cars or clothing, jewelry is difficult to trace once it’s been stolen. Consumer electronics make tampering with serial numbers or packaging obvious, and items that have been altered or removed from original packaging garner a lower price than brand-new-in-box goods. This issue is easily resolved for jewelry, which can be repackaged or even melted down and resold as raw materials.
Blackbird Security Protects Charm Diamond Centres
We’re proud to partner with Charm Diamond Centres in Ontario to protect their valuable inventory, staff, and customers against organized retail crime and other security threats. Charm trusts us to provide tactical security coverage at eleven of their locations, seven days a week. Our professional security teams provide a reassuring presence in shopping malls, ensuring peace of mind for guests and staff alike.
Most Commonly Stolen Retail Items by Non-ORC Individuals
Non-ORC-related thefts are a prevalent issue for retailers. While common shoplifters operate on a smaller scale compared to ORC, the volume and frequency of thefts can still have a profoundly negative impact on businesses. Goods stolen by ORC groups and common shoplifters often overlap, particularly designer goods. In addition to high-value items, be alert for theft of the following personal-use items:
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Makeup and cosmetics
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Gift baskets
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Meat
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Cheese
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Toys
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Alcohol
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Clothing
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Toiletry products
The Broader Impact of Organized Retail Crime
It's important to recognize that organized retail crime is not a victimless crime. The financial losses incurred by retailers can lead to increased prices for consumers. Moreover, the violence and aggression associated with ORC create a dangerous environment for retail employees and shoppers alike. As highlighted in recent reports, staff are increasingly facing threats and assaults while trying to deter these crimes.
Furthermore, the proceeds from retail theft often fuel other criminal activities, creating a wider societal problem. Law enforcement agencies are increasingly recognizing the connection between ORC and other forms of organized crime.
Read More: The Impact of Organized Retail Crime on Ontario Businesses
How Can Retailers Protect Themselves Against ORC?
While law enforcement entities' education and community involvement with businesses can have a positive impact, retail security measures are the most proactive solution for businesses. Here’s how your retail security team will safeguard your business:
Safety
Retail security guards are trained to handle ORC thefts and will take immediate action to protect your store, customers, and staff. Tactical security guards at Blackbird Security receive training in Use of Force, allowing them to safely and efficiently take down thieves. Having trained security guards on site to address the situation lessens the chances of an untrained staff member intervening and potentially getting hurt.
Deterrence
The presence of security guards provides a deterrent to potential ORC groups, who are less likely to target stores visibly protected by security. Additionally, the presence of uniformed security guards makes customers feel safer, contributing to brand trust and customer retention.
Strategy
Your store’s retail security team will get to know your business’s unique security challenges and devise an optimized strategy that addresses all of your needs, as well as any blind spots. This may include deploying uniformed security guards to high-risk areas of your store, monitoring CCTV cameras for suspicious activities around store exteriors, and using undercover Loss Prevention Operatives (LPOs) to monitor suspicious activity within the store.
Case Study: Blackbird Security Guard Prevents Shoplifters at Arc’teryx
In November, at an Arc’teryx store within Coquitlam Center Mall in Coquitlam, a neighbouring city of Vancouver, Blackbird Security retail security guard Gautam Suri demonstrated exceptional bravery and quick training recall when he recovered 18 stolen items worth over $19,000 from organized retail crime thieves.
The Attempted ORC Theft
At approximately 11 AM, three suspicious individuals entered the store and began removing jackets from display racks, carrying multiple jackets in each hand. Gautam, the on-duty retail security guard stationed near the store entrance, noticed their behaviour and took immediate action to intervene. Despite Gautum’s verbal instructions to stop immediately, the suspects ignored him. They became aggressive and proceeded toward the store exit, pushing Gautam out of the way as they fled.
Gautam quickly followed the suspects out of the store and into the main mall area. While in pursuit, he called 911 and provided details of the incident and descriptions of the suspects to the operator. During the pursuit, one suspect tripped and fell near the mall exit. This allowed Gautum to recover eight jackets from that particular suspect before they managed to flee the mall premises. The recovered hackets were handed to Coquitlam Center mall security for safekeeping.
The two remaining suspects exited the mall and entered a waiting taxi parked nearby. Gautam approached the taxi and firmly instructed the driver to step out of the vehicle. At this point, the two remaining suspects fled without their stolen goods, and Gautum successfully recovered the remaining 10 jackets from the taxi.
Constable Kenwards, of the Coquitlam RCMP, arrived promptly at the scene. Gautam provided photographs of the suspects and a detailed account of the incident to assist in the ongoing investigation. During the altercation outside, two mobile phones belonging to the suspects had been dropped at the scene. Coquitlam Center mall security recovered them, and the RCMP may additionally use them in their investigation into this ORC incident.
The Recovered Arc’teryx Merchandise
In total, 18 jackets were recovered from the thieves. The description of the goods is as follows:
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7 Women’s Liatris Down Jacket - $1000 each
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1 Men’s Solano Down Hoodie - $637.50 each
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2 Men’s Ralle Down Parka - $1100 each
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8 Women’s Liatris Long Coat - $900 each
Gautam displayed remarkable bravery during his pursuit of the thieves. His quick decision-making resulted in recovering a total post-tax value of $19,082.00 for our client.
Frequently Asked Questions (FAQs) About Organized Retail Crime
What is organized retail crime?
Organized Retail Crime (ORC) refers to the systematic and coordinated theft of merchandise from retail establishments with the intention of reselling these goods for profit. Unlike individual shoplifting, ORC involves groups or networks engaging in these activities on a larger scale.
How does organized retail crime work?
Organized retail crime typically involves teams of individuals who strategically target stores, often using techniques to distract staff or quickly steal large quantities of specific items. These stolen goods are then usually transported to a central location, stored, and subsequently resold through various channels, including online marketplaces, flea markets, or black market networks.
Who is behind organized retail crime?
While individuals may participate in ORC activities, it is often orchestrated by organized criminal groups or networks. These groups can range from loosely affiliated individuals to more sophisticated operations with leaders, recruiters, and established resale channels. The proceeds from ORC can sometimes fund other illegal activities.
Partner With Canada’s Best Retail Security Company
The fight against organized retail crime demands a strategic and experienced partner. Blackbird Security is a leading provider of comprehensive loss prevention services in Canada, working with major retailers such as Best Buy, Canadian Tire, and Rexall Pharmacy to combat theft and create safer retail environments. Our tailored solutions, including expert security personnel and proactive strategies, are designed to address the unique challenges of ORC and protect your bottom line.
Ready to strengthen your defence against organized retail crime? Request a Quote for Loss Prevention Services
