Guest Column: The Shocking Reality Of The Financial Losses Caused By Organized Retail Crime

By Adel Sayegh, President/CEO, Universal Surveillance Systems

Retailers are aware of the devastating impact that Organized Retail Crime (ORC) has on businesses. Most retailers might be surprised to learn, however, that approximately 85% of retail establishments will be victims of ORC, with over $30 billion dollars lost to ORC theft annually. The shocking reality of the financial losses to business and government due to ORC is compounded by the way in which the perpetrators of Organized Retail Crime are currently being prosecuted in our court systems. A senior citizen who steals a pack of socks or a teenager who swipes a baseball cap is prosecuted under the category of "petty theft". A member of a massive, highly organized crime ring that works with others in a coordinated effort to steal hundreds of items, on the other hand, is also prosecuted under the category of petty theft. With such lenient laws on the books, it is no wonder that Organized Retail Crime is on the rise. With the holiday season upon us, loss prevention professionals are bracing for an increase in ORC, as the economy continues to tumble and would be criminals become more desperate.

As 2008 winds down and retailers look ahead to what is sure to be a difficult and unpredictable 2009, it is an ideal time for those that share the responsibility for retail loss prevention to consider new strategies that can help organizations reduce costs, protect merchandise, reduce shortage and improve customer and employee safety. It is imperative that retailers redouble their efforts to implement best practices across disciplines. The need to support ORC prevention efforts and to implement innovative ORC solutions has never been greater.