Retail businesses incur significant losses due to organized crime, with approximately $720,000 lost for every $1 billion earned, according to the National Retail Federation.

In the ever-evolving world of retail, organized retail crime has emerged as a significant challenge. According to a report released by the National Retail Federation in December 2020, the issue has been costing retailers more than $700,000 per $1 billion in sales for the fifth year in a row, with an average cost of $719,548 per $1 billion in sales.

The report also revealed that in 2019, a staggering 97% of retailers experienced organized crime, a concerning statistic that underscores the widespread nature of this problem. One of the most prevalent forms of organized retail crime is the return of stolen goods online, with 51% of retailers reporting such incidents in 2019.

To combat this issue, retailers are taking various measures. More than a third (36%) of retailers are increasing their loss prevention budget, and 29% have changed their point-of-sale policies. Furthermore, a third of retailers have altered their return policies in response to organized retail crime.

In addition, 52% of retailers are setting aside more tech resources to address these risks, acknowledging the growing threat posed by cyberattacks. This is a prudent move, given that cybersecurity experts have long warned that third parties like vendors, consultants, and suppliers pose potential cybersecurity risks for retailers.

One such incident occurred during the third quarter of 2020, when DSW, a major retailer, lost access to its store inventories due to a ransomware attack on a software vendor.

The issue of organized retail crime has led more than six in 10 retail respondents to believe that a federal organized retail crime law is necessary. Retail shrink, which reached $61.7 billion in 2019, an increase from $50.6 billion in 2018, further underscores the need for action.

Notably, the number of retailers seeing boosters returning stolen merchandise for store credit or gift cards and then selling the credit or gift cards on the secondary market has increased. In 2019, this number stood at 59%, up from 51% in 2019 and 50% in 2018.

Despite these challenges, specific information on companies that have implemented loss-prevention measures due to organized burglary in the retail sector or that have been affected by cyberattacks was not readily available in the search results.

In conclusion, organized retail crime is a pressing issue that retailers are grappling with. By taking proactive measures such as increasing budgets for loss prevention, changing return and point-of-sale policies, and investing in tech resources, retailers are working to mitigate the impact of this crime on their businesses. However, the need for a federal organized retail crime law and continued vigilance in cybersecurity measures remains essential in the fight against this growing threat.

Retail businesses incur significant losses due to organized crime, with approximately $720,000 lost for every $1 billion earned, according to the National Retail Federation.