Organized Retail Theft (Part-2)

History of Organized Retail Theft

Thieves have stolen retailers’ merchandise for all of recorded history. But organized retail theft as we know it today became apparent just over fifteen years ago. Shoplifter rings were discovered and investigated in Detroit, Pittsburgh, and other Eastern U.S. cities in the mid-1980s. ORT proliferated in the 1990s and continues to grow today, but a new and potentially dangerous element has entered the ORT scene. There are strong indications that revenue from these criminal enterprises may be funneled to terrorist groups. Leaders of at least three large ORT rings that have been broken by long-term investigations were foreign nationals, some with U.S. citizenship, and many who are illegal immigrants. 

Targeted Products

ORT rings typically target everyday household commodities and consumer items that can be easily sold through fencing operations, flea markets, swap meets and shady store-front operations. Items that are in high demand by these professional theft rings include over-the counter (OTC) products such as analgesics and cough and cold medications, razor blades, camera film, batteries, videos, DVDs, smoking cessation products and infant formula.

Consumer Health and Safety Risks

Consumers are at risk when ORT gangs steal consumable products, especially OTC items and infant formula. In many cases after the merchandise has been stolen, the products are not kept under ideal or required storage conditions, which can result in rapid ingredient deterioration and loss of potency. If the products are near the end of their expiration date, ORT middlemen will change the expiration date and lot numbers to falsely extend the shelflife of the product. In addition, cough and cold products are popular with ORT rings because these medications can be sold to clandestine labs for the purpose of manufacturing methamphetamine.

Economic Impact on Consumers

Retail theft often results in consumers having to pay higher prices for the products they purchase as retail establishments attempt to cover their losses. Higher prices adversely affect all consumers, especially the most needy in America, such as the elderly and families that depend upon food stamps and the WIC program to augment their limited budgets. Consumers are also being inconvenienced by this type of criminal activity. Because theft has become so rampant in certain product categories, such as infant formula, a number of major retail companies are taking the products off the shelves and placing them behind the counter 2 or under lock and key. In some cases, products are simply unavailable due to high pilferage rates.