BY SANDRA GUY
Business Reporter
sguy@suntimes.com
June 5, 2012 6:22AM
Chicago ranks No. 3, behind Atlanta and the Baltimore-Washington, D.C., area, in reporting organized retail crime such as gangs thefts and stealing to help street gangs, according to a report issued Tuesday by the National Retail Federation, a Washington, D.C.-based retail membership group.
“Though retailers continue to make great strides in their fight against organized retail crime, sophisticated criminals with unending opportunities and anonymous outlets to sell their stolen merchandise are proving to be quite challenging for both retailers and law enforcement agencies working to combat this issue,” said National Retail Federation Senior Asset Protection Advisor Joe LaRocca. “With the types of organized retail crimes changing in severity and scope every day, and cargo theft and violent instances becoming more troubling, retailers are constantly on high alert.”
Of the 125 retail companies surveyed for NRF’s eighth annual Organized Retail Crime Survey, a record-high 96 percent say their company has been the victim of organized retail crime in the past year, up from 94.5 percent last year, and another 87.7 percent say organized retail crime activity in the United States has grown in the past three years.
Cargo theft continues to grow at an alarming rate, posing huge problems for retailers and their distribution centers. On average, 52.1 percent of companies say they have been a victim of cargo theft in the past 12 months, up from 49.6 percent last year. A significantly higher percent of companies this year said cargo theft occurs mostly en route from the distribution center to the store (68.1 percent vs. 57.4 percent in 2011). Four in 10 (43.5 percent) say these incidents also occur en route from manufacturer to distribution center and 15.9 percent say they happen at the distribution center.
The survey also indicates a growing trend in the level of violence retailers see when organized criminal gangs are apprehended (15 percent of incidents vs. 13 percent in 2011). Retailers grappling with these violent acts also report that they believe more offenders are engaged in drug activity. Nearly half (49 percent) of respondents estimate drugs and drug activity are linked to organized retail crime incidents.
When asked what new trends in organized retail crime they have noticed in the past year, retailers cited familiar issues involving the economy, returned stolen merchandise, gift card fraud, and increases in violent activity upon apprehension. However, new to the list of trends this year were specific references to digital receipt fraud; increased smash and grab incidents; and collusion with street gangs.
Rounding out the list of cities reporting these issues were: Dallas, Houston, Los Angeles-Orange County, New York-Northern New Jersey, Miami, Phoenix and San Francisco-Oakland, Calif., the report stated.