37% of Retail Shrink is External Theft: How to Mitigate Organized Retail Crime
37% of Retail Shrink is External Theft: How to Mitigate Organized Retail Crime
The 2022 National Retail Security Survey by the National Retail Federation (NRF) revealed that retailers attributed their greatest portion of shrink – at a whopping 37% – to external theft. This issue of retail crime accounts for an aggregate $94.5 billion impact on the industry as of 2021.
What is the impact of ORC?
Due to the current economic climate, all opportunities to preserve cash flow are on the table. Layoffs are hitting every sector in retail, and corporate executives are seeking all methods possible to keep their businesses afloat.
With the macroeconomic impacts coupled with the unfortunate realities of retail theft, finding a technology solution to address ORC is table stakes for companies looking to weather the current economic difficulties.
The issue of ORC has reached such a tipping point across the U.S. that in October 2022 Homeland Security Investigations (HSI) launched Operation Boiling Point stating, “in response to OTGs profiting from ORC, cargo theft and other theft-related crimes that threaten the economy and security of the United States.” HSI reiterates that the impacts of ORC, “raise everyday costs for consumers, cost jobs and employee benefits, drain community tax revenue and threaten the safety of employees, consumers and members of the community.”
Due to the obvious impacts on business, NRF reports 31.5% of retailers have created an ORC-focused task force to address the issue from multiple angles. In addition, other commercial companies are looking to technology to help address the issue with 19.3% investing in license plate recognition and 7% leveraging gunshot detection.
How Flock Safety helps reduce ORC
Flock Safety’s license plate reading cameras, also known as LPRs, reduce and prevent crime on your commercial properties which enables you to proactively focus on your business.
According to the International Association of Chiefs of Police (IACP), 97% of car thieves are charged with additional crimes like robbery, shootings, or homicide. With Flock technology you can create a virtual perimeter around your business.
By implementing LPRs around your business and opting to share this information with local law enforcement, you enable any stolen vehicle that are included on a hotlist to alert authorities immediately. This type of preventative measure can help deter potential ORC and provide the vital details necessary to track down leads when crime does happen.
By ensuring that your physical assets are protected, you reduce retail shrinkage and are free to move those previously lost funds to other relevant areas of your business. This proactive approach enables you to retain more of your staff by focusing on employee safety, while also preserving your market position and perception with customers’ as a safe shopping experience.
Change the Trajectory of Your Business
You can change the trajectory of your retail business by utilizing Flock Safety technology. To learn more about partnering with Flock to address Organized Retail Crime, protect your bottom line, and improve the safety of your employees and experience of your customers, book a demo today.
