It used to be that Hartford-area stores worried about a couple of stray teenagers stealing a magazine or a CD.
Now, stores are facing the very real problem of shrinkage as its inventory is depleted by organized groups of thieves looking to make a quick buck.
In recent years, the term organized retail crime, or organized retail theft, has come into vogue as more and more criminals are stealing items off the shelves only to re-sell them.
The explosion of the problem was hammered home earlier this year when the National Retail Federation released a survey that found 79 percent of loss prevention executives confirmed they had been a target of organized retail crime.
And while 71 percent said they had seen an increase, only 52 percent of executives said additional resources had been allocated to fight the problem.
While retailers nationwide face the problem, Connecticut is towards the top when it comes to incidents.
The Retail Industry Business Association and NRF combined their crime databases this year and found that the most incidents occurred in New York, New Jersey and Connecticut.
Retailers estimate they lose about $30 billion annually to organized retail theft and one obstacle in fighting those types of crime is the law.
Joseph LaRocca, NRF’s vice president of loss prevention, said that prosecuting cases has been difficult because of weak state shoplifting laws and that most prosecutors don’t take action until the stolen merchandise is worth more than $50,000.
Tougher Laws
With so much money being lost, it did not take long for retailers and state governments to take action. Alabama, Colorado, New Jersey and Washington have enacted laws addressing organized retail crime.
Connecticut was poised to add its name to the list but a bill supported this year by the General Law and Judiciary committees did not get passed prior to the end of the session.
State retailers are continuing to push for the measure to be approved when the legislature returns, said Connecticut Retail Merchants Association president Timothy Phelan.
The bill would have established two new crimes — organized retail theft and accessory to retail theft — defined as committing larceny and selling or transferring the items to others. Offenders would still be charged with larceny.
Connecticut At Crux
Phelan described Connecticut as a hotbed of organized retail crime, in part because of its proximity to Boston and New York City, and because several companies have identified Connecticut as a problem area.
“Retailers have always had a challenge with shoplifting,” said Phelan. “Recently, there’s been a dramatic change in the behavior. It’s more coordinated, it’s more structured. It’s not just somebody coming in for a couple of magazines, it’s a group of people stealing things to sell.”
The rise of organized retail crime surprised Phelan, but he said retailers have come to the realization they must organize themselves to combat it.
“The biggest thing we have to do right now is raise the awareness level,” said Phelan. “It needs to get out there that this is happening, that it is an ongoing problem and work with other retailers to come up with ideas.”
A need for unity between retailers is the impetus behind the New England Organized Retail Crime Symposium, to be held Sept. 13 at the DCU Center in Worcester, Mass. and sponsored by the Connecticut, Massachusetts and New Hampshire retailer associations.
There is one other group that is vital for retailers in the battle, a group Phelan said needs to be made more sensitive to the problem.
“We have to reach out to law enforcement on the issue because it’s not traditional shoplifting,” he said. “It’s not just one teenager. It’s two to three people in the store. It’s one to two people on lookout. It’s another person involved getting the products to the fence.”
