Keck Private Investigations

Organized retail crime (ORC) is not limited to large stores or national chains. Small businesses throughout the United States face frequent and costly theft by organized groups. These crimes threaten the survival of independent retailers, strain resources, and damage trust within local communities.

The Real Numbers: How Bad Is the Problem?

Industry surveys show that 54 to 56 percent of small business owners have reported an increase in shoplifting in the past year (U.S. Chamber of Commerce, 2023). The frequency of theft is high. More than 85 percent of small businesses experience retail theft each year. Almost 75 percent report monthly incidents, and over half face theft on a weekly basis (Capital One Shopping Research, 2024).

The financial losses are significant. Small businesses lose an average of $1,686 per month due to theft. Nearly 70 percent report losses of at least $1,000 each month (Capital One Shopping Research, 2024). For many small retailers, annual losses can exceed $20,000. This amount can threaten long-term viability.

The Hidden Costs: Security and Emotional Toll

The impact of ORC extends beyond lost merchandise. Nearly two-thirds of small business owners have raised prices to offset theft losses. More than half have invested in security cameras or surveillance systems. Many owners spend at least $1,500 for basic security coverage (Capital One Shopping Research, 2024). These costs reduce already limited profit margins.

Owners and employees face increased anxiety, stress, and a sense of vulnerability. Some report panic and trouble sleeping. Others need medication after repeated thefts or aggressive encounters (Herald Sun, 2024). For a small business, the loss of a safe environment can be as damaging as the loss of inventory.

Underreporting Means the Problem Is Bigger Than It Seems

Only about one-third of small business owners report theft to police. Many cite time constraints and lack of confidence that reporting will lead to results (Pinkerton, 2024). This underreporting makes it difficult for law enforcement to see the true scale of the problem. It also limits resources that could be allocated to solve it.

Price Increases Affect Everyone

Research shows that when small businesses are targeted by theft, prices for customers can rise between 1.5 and 1.8 percent. This price increase is higher than what is typically seen in larger stores (Hase and Kasinger 2024). For local families and communities, this is a hidden tax that makes daily life more expensive.

What Can Be Done?

Small business owners need targeted support. Community partnerships, increased law enforcement attention, and specialized loss prevention audits can help. Keck Private Investigations works with small retailers to identify vulnerabilities, develop prevention plans, and document incidents for stronger police response.

Organized retail crime is a serious and growing threat for small businesses. Facing this challenge with accurate data, community support, and effective prevention measures is essential for safer, stronger neighborhoods.