Understanding Organized Retail Theft and How to Prevent It

In a report published by the National Retail Federation, 73% of retailers state that shoplifters are becoming more violent and aggressive. It’s a trend that is leaving a lasting impact: revenue losses. In 2022, U.S. retailers reported roughly $112.1 billion in losses, with organized retail theft being cited as a primary cause.

That, then, begs the question: What is organized retail theft? And more importantly, what can you do to prevent it? Below is a comprehensive guide as to how you can push back against organized criminal activity and reduce the risk of bad actors making off with stolen merchandise.

What Is Organized Retail Theft (ORT)?Title

Also referred to as organized retail crime (ORC), ORT refers to the systematic and planned theft of merchandise, typically carried out by a larger criminal enterprise or similar group.

Unlike a lone shoplifter who steals out of opportunity, ORT involves coordinated operations designed to maximize theft volume and profit. A few examples include cargo theft, as well as flash mob and smash-and-grab robberies. Ram raiding, where one or more vehicles drive straight through your storefront, is a particularly dangerous form of ORC.

In short, the key traits of organized retail crime are as follows:

• Multiple individuals work together to distract staff or overwhelm a store
• Thieves focus on high-value items like electronics, cosmetics, over-the-counter medications, or everyday goods
• They may use encrypted communication, fake IDs, insider help, or other advanced techniques to carry out the heist

With the rise of online marketplaces, selling stolen goods is easier than ever, a development that has only fueled the growth of ORT. Many stolen products are resold within hours on platforms where tracking their origins is nearly impossible.

Why Organized Retail Theft Is a Growing ProblemTitle

Being battered by theft rings that carry out ORT and similar crimes against storefronts, the retail industry at large is increasingly overwhelmed by the following concerns:

• Financial Strain: ORT drives up shrink rates and cuts into already-thin retail profit margins
• Advanced Tactics: Crime groups are using tools like RFID blockers and cloned barcodes, as well as hacking directly into return systems
• Brand Damage: Frequent theft makes stores look unsafe or poorly managed
• Law Enforcement Limitations: Because ORT often crosses jurisdictions, many local law enforcement agencies struggle to effectively pursue and prosecute perpetrators

Combating organized retail crime and other forms of large-scale theft is especially challenging in large cities like Los Angeles, where there is no shortage of targets for criminal networks.

The Impact of Organized Retail Theft on RetailersTitle

Retail stores face widespread repercussions when they are targeted by organized retail theft, including the following:

Financial LossesTitle

A single instance of ORT can cost a retail establishment tens of thousands of dollars in losses, all within a few minutes. These losses don’t just impact the retailer, either; the economic impacts of ORT include higher prices on retail merchandise. And when large quantities of stolen property flood the online market, that can impact the resale values that legitimate private sellers can list their items for.

Operational DisruptionTitle

When essential or high-turnover items are repeatedly stolen, that impacts everything from inventory planning to customer satisfaction. Consumers go without the items they want or need, and retailers may be forced to remove merchandise from shelves or restrict access to high-value goods, which hurts sales volume.

Brand ReputationTitle

Customers expect safe, well-run stores. A pattern of thefts can tarnish a retailer’s image and reduce its foot traffic. Smash and grab attacks and flash mob robberies are particularly damaging, as they can pose a danger to shoppers who are in the store when the incidents begin.

Employee Safety and MoraleTitle

Organized retail theft can place employees in harm’s way, especially when criminals are aggressive or armed, leading to:

• Decreased morale
• Higher turnover
• Increased training and liability costs

If you run a retail business, you have to provide your team with a safe place to work. If they don’t feel safe, it’s going to drastically impact your ability to find and keep talent.

Prevention Strategies for Organized Retail TheftTitle

Stopping organized retail theft from negatively impacting your business may not be the simplest task, but there are some practical strategies to explore, such as:

Physical Security MeasuresTitle

Physical deterrents, such as the ones listed below, make for some of the best measures you can implement to protect your business from theft:

• Cameras: Visible surveillance systems deter would-be criminals
• Security Gates and RFID Tags: These make it harder to exit with unpaid goods
• Lighting: Well-lit parking lots and entrances discourage after-hours break-ins

Before you invest in these preventive measures, however, conduct an audit of your retail business to identify high-risk areas that criminals may be able to exploit.

Technological SolutionsTitle

Investing in cutting-edge technologies could be the key to protecting your business from organized retail theft. AI-powered video surveillance tools, for instance, can detect suspicious behaviors like loitering, coordinated movements, or casing the store, giving you time to intervene or contact law enforcement before it’s too late.

There are also smart access control systems and automated alert technologies. The former systems restrict who can enter backrooms or stock areas, which can help reduce the risk of cargo theft, and the latter can notify staff or authorities before a theft is complete.

Employee Training and AwarenessTitle

Your team members are your first line of defense against organized retail theft, so make sure you discuss the threats your business is facing with them as well as what signs they should look for.

Alert employees may pick up on subtle activities, such as a suspicious vehicle in your store’s parking lot around closing time. Encourage them to say something, even if they think that what they observed is “nothing.” It’s better to look into any unusual activity as opposed to risking a potentially dangerous incident going undetected.

Collaborating With Law EnforcementTitle

Working with local, state, and federal law enforcement agencies can help you push back against various forms of ORC. Many regions impacted by organized retail theft, including California, have created task forces to promote public safety.

Connect with your local law enforcement agency to determine the kinds of resources they offer to help with ORT prevention. They may be able to send alerts about crime trends or suspects who are active in your area.

Using Technology to Combat Organized Retail TheftTitle

As modern criminals are leveraging technology to carry out ORT, you need to do the same. AI-driven solutions like Deep Sentinel are changing the game in real-time retail security by offering the following:

• Live security guards who monitor AI-powered cameras in real-time
• Smart analytics that detect early signs of theft, like loitering
• Motion detection and predictive analysis that distinguish between normal and abnormal behavior

Additionally, unlike traditional systems, Deep Sentinel’s AI does more than record; it prevents theft before it happens. In turn, you are less likely to be stuck reviewing video evidence, wondering where you went wrong, and instead able to focus on making meaningful strides to stop ORT in its tracks.

How Deep Sentinel Can Help Prevent Organized Retail TheftTitle

Here’s a detailed list at what you’ll have access to with Deep Sentinel:

• Smart Surveillance: Advanced analytics distinguish between normal customer behavior and signs of ORT
• 24/7 Real-Time Monitoring: Live guards review footage as soon as suspicious activity is detected
• Proactive Intervention: Guards can engage directly via two-way audio communication
• Verified Alerts: Deep Sentinel confirms real threats before escalating to law enforcement, reducing false alarms
• Scalable Integration: Deep Sentinel integrates with your existing retail security infrastructure and scales to your needs

Altogether, Deep Sentinel provides advanced yet practical retail security solutions to combat the challenges of ORT throughout the industry.

Explore Deep Sentinel and Protect Yourself From ORTTitle

Deep Sentinel can be a critical part of your organized retail theft prevention strategy. Our virtual security guardsA are notified in seconds if our AI-powered cameras pick up on suspicious activity. They can communicate with the suspects using two-way audio or notify law enforcement, if necessary. Our camera systems are also readily scalable and ready to be deployed across every location and vulnerable area. We even offer solutions designed to deter or even detain criminals attacking your store.

Don’t leave the fate of your business in the hands of antiquated technologies. Contact Deep Sentinel today to learn how our AI-powered security systems can help protect your retail business from organized retail theft.

Organized Retail Theft FAQsTitle

Deep Sentinel and FlashBang: The Smart Choice

In addition to innovative solutions like FlashBang, here’s what you can expect from Deep Sentinel.

Comprehensive Protection

Deep Sentinel provides holistic, robust security. It combines state-of-the-art cameras with advanced features such as infrared night vision, motion activation, 2-way audio, and floodlight capabilities. This comprehensive approach ensures that your business is safe from various threats, including organized retail crime, intrusions, vandalism, and suspicious activity.

Professional Monitoring

Deep Sentinel’s unique offering lies in the active monitoring service. It’s a unique combination of an AI-powered system that instantly assesses all threats and live security guards who intervene promptly. This level of monitoring provides a higher level of security, enabling an immediate response and eliminating the risk of incidents going unnoticed.

Real-Time Intervention

With Deep Sentinel, businesses benefit from the assurance that trained security professionals are actively watching over their property. This real-time intervention goes beyond merely alerting you to potential threats. It enables immediate action to deter intruders and prevent incidents. This proactive approach stops break-ins and other criminal activities before they cause harm or loss.

Enhanced Deterrence

Deep Sentinel’s security system acts as a powerful deterrent to potential intruders. Visible cameras with active monitoring and two-way audio significantly reduce the likelihood of a break-in or theft. Criminals are more likely to target businesses with minimal security measures, making Deep Sentinel an effective deterrent that helps keep businesses safe.

Peace of Mind

Investing in a Deep Sentinel system provides unparalleled peace of mind. Knowing that professional guards are watching your property alleviates many security concerns.

And, for the most persistent intruders, there’s always the extra “firepower” that comes with FlashBang.