Retail Crime Rises in Recession

The RILA survey conveys that a distressed economy increases retail crime rate

The Retail Industry Leaders Association (RILA) recent survey depicts a rise in retail crime linked to distressed economy. Thirty two of America's largest retailers in grocery, electronics, apparel and craft have taken part in the RILA survey, from which 61% have reported to have experienced a rise in amateur shop lifting, 72% claimed to have encountered an increase in organized retail crime (ORC), and 52% report a growth in financial fraud. The RILA survey conveys that in times of economic downturn effective commercial security is paramount to combat ORC.

Studies demonstrate that one out of ten customers walking into a shop is a potential shoplifter, yet recent statistics testify to a rising ratio in shoplifter vs. customer count. Studies point to an increase in opportunistic shoplifters which corresponds to a rise in professional thievery. The recession pushed many amateur shop lifters to cross over and join ORC to supplement their "income" derived from selling the stolen goods.

A growth in ORC should alarm not only the retail sector, but further the commercial and law enforcement community. Paul Jones, vice president of asset protection for RILA, claims "These trends confirm that retail criminals are seeking to capitalize on the current economic climate to expand their activities…Their resulting ability to fund other crimes should be a concern to everyone." For this reason, retailers across America spend a large portion of their security budged to protect their business against shoplifting, from alarms systems to CCTV.