Business battles surging ORC
In recent years, the United States has witnessed a concerning surge in organized retail crime, affecting both small businesses and large corporations alike. ORC impacts not only the economic stability of enterprises but has also led to profound consequences for communities across the nation. In this episode of Retail’s Most Wanted, Tom Wickham of the U.S. Chamber of Commerce shares firsthand accounts of business owners and discusses measures being taken by policymakers and organizations to address the growing problem.
Small business struggles
ORC has posed intense and sometimes insurmountable challenges for small business owners like Ana Fernandez, a dessert shop owner in San Antonio, Texas. Despite weathering the COVID-19 pandemic, an uptick in crime strained Ana’s resources. Break-ins and security investments became routine, but the final blow came when her air conditioning unit was stolen, forcing her to close down her business. Ana's story is unfortunately not unique, with many small businesses enduring similar struggles.
The impact on large corporations
ORC extends beyond small businesses to impact even large corporations. A survey conducted by the U.S. Chamber of Commerce revealed double the mentions of organized retail crime in earnings statements from S&P 500 companies between 2020 and 2023. The economic repercussions of these crimes are far-reaching, leading to increased prices, job losses, and business closures.
Policymaker awareness and action
As a former Hill employee, Mr. Wickham has a deep understanding of the efforts being made by policymakers to combat retail crime. In the last eight months, three congressional committees have held hearings on the matter, and 20 states have updated their laws to address rising crime rates. The governors of New York and California are actively seeking retail crime bills in 2024, signaling a commitment to finding legislative solutions.
Partnerships and initiatives
The U.S. Chamber of Commerce is working closely with state chambers of commerce, attorneys general, and other entities to address ORC nationally. The Chamber recommends three steps to combat retail crime in 2024:
Coordinate: Unite stakeholders, including police, prosecutors, businesses and policymakers, to work collaboratively in addressing organized retail crime.
Aggregate: Update state laws to match the sophistication of criminals. Aggregating multiple offenses can provide prosecutors with the tools needed to tackle repeat offenders.
Prosecute: Prosecutors should take retail crimes seriously and address them appropriately, ensuring transparency in arrest policies and charging decisions.
