Organized Retail Crime (ORC) has become one of Retail’s most pervasive problems, with more than 70% of retailers surveyed reporting an increase in ORC activity over the past 12 months, according to a recent study performed by the NRF. These criminal enterprises cost the industry nearly $800k per $1 billion in sales annually and show no signs of slowing down.
What’s driving the ORC phenomenon?
Experts believe there are many contributing factors, some of which extend far beyond the store including:
• Reductions in retail staff and lack of dedicated resources to ORC programs
• The opioid and heroin epidemic driving the need for fast cash
• Online portals that make fencing stolen items easier, less risky and more anonymous.
• Perpetrators that perceive ORC as a “lesser offense” with lower penalties, therefore making it more attractive
ORC impacts retailers of all sizes. As these crime rings become more brazen and aggressive in their efforts, many retailers have responded with forward-thinking strategies that are putting these groups behind bars.
This was the case with Jim Mires, the VP of Loss Prevention & Safety for Sally’s Beauty Holdings. When Jim joined the team, Sally’s had been hit hard by a serial burglary ring in the Toronto area.
“The cost of burglary is big. There’s the loss of revenue, the cost of property damage and the impairment to the company’s reputation. I wanted to do more than just stop these criminals. I wanted to catch them and pursue them civilly for damages. So, when Sally’s began to experience a surge in burglaries I told the members of Senior leadership… we can impact this.”
Jim, a 30-year industry veteran, had oscillated between Operations and Loss Prevention for years.
“I’ve done it all. I started out as an in-store agent and moved up the ranks, eventually joining Sally’s Beauty Holdings a little over a year ago.”
He first became familiar with 3SI and GPS tracking at a conference. “Their sales rep wasn’t pushy, and he didn’t try to sell me anything. He just listened and genuinely wanted to help. We deployed several Trackers with my previous employer that year with great success. So, I knew that it would work.”
Fast forward a year later and Sally’s now has over 200 trackers deployed across stores throughout the U.S. and Canada. Sally’s Beauty, with the help of GPS tracking, has helped to identify 11 crime rings and facilitate multiple arrests.
Jim realized the impact ORC had on his company’s bottom line and through his collaboration with 3SI he was able to:
- Protect shoppers and employees by minimizing interactions with dangerous criminals
- Capture repeat offenders and hold them accountable for losses
- Recoup stolen assets
- Build a safer community by being good global citizens and proactively doing his part to take criminals off the streets
The staggering growth in Organized Retail Crime has made retailers of all sizes an attractive target. Keeping your store safe in the face of these challenges isn’t easy. Fortunately, 3SI Security Systems offers customized solutions to help protect your property, customers, and staff.
Visit our Retail industry page or www.3SI.com to learn more.