Stop Organized Retail Theft: 7 Grocery Store Strategies

Nearly every small grocery store owner deals with shoplifters at one time or another — but what about full-scale organized retail theft?

Organized retail theft (ORT), also called organized retail crime (ORC), is when perpetrators steal on a larger scale and for profit — and unfortunately, it’s a persistent problem for small and big retailers alike.

But by knowing more about ORT, which types of products are targeted, and what tactics are used, you can defend your business against large-scale theft.

Let’s dive in.

What Is Organized Retail Theft?

Let’s start with the basics: What is organized retail theft, and how is it different from shoplifting?

The National Retail Federation defines ORT as “large-scale theft of retail merchandise with the intent to sell the items for financial gain.” Put another way, unlike shoplifting, where the goal is to steal something for oneself, the goal of ORT is to steal items to turn a profit.

Here’s how ORT usually happens at grocery stores:

• Employee theft or cargo theft: An employee works alone (or with outside help) to access reordering systems or steal large amounts of merchandise from deliveries or stockrooms.
• Ticket switching: This is when a person places the barcode for a low-cost item over an expensive one (e.g., a barcode for a sirloin-tip steak over a wagyu rib eye) to pay less and potentially resell it.
• Credit card fraud: A person uses a stolen credit card to buy merchandise, then the payment either doesn’t go through or is charged back.
• Smash and grab: A group of people dress up in similar clothing to make it hard to identify them, then run in and try to steal as many items as they can. This type of theft tends to target high-end boutiques as opposed to low-margin retailers.
• Gift card theft: This is when gift cards are bought from a retailer, and then the funds are stolen later. While this theft doesn’t directly steal from the retailer themselves, it’s still worth keeping an eye out for.
• Return fraud: A person returns a piece of stolen merchandise or uses a phony receipt to obtain cash or store credit.

In general, smaller grocery stores should prioritize employee theft, ticket switching, and credit card fraud. The chances of smash-and-grab or return fraud (at least on a large scale) at a grocery store are relatively slim.

Beyond lost money, ORT has major consequences for grocery stores, including complicating inventory tracking and losing trust with customers.

How Common Is Organized Retail Theft?

It’s smart to be vigilant about organized retail crime, but there are differing opinions on how big a problem it really is.

Some sources, like the Council on Criminal Justice (CCJ), report large increases in organized theft and shoplifting nationwide. Other sources, like the Brennan Center for Justice, say the alarmist statistics may be misleading. They note that many of these statistics combine multiple types of theft, inflating the overall numbers. Also, the biggest spikes are mostly limited to certain cities and areas.

However, many retailers are seeing an uptick in shoplifting as inflation and tariffs drive up prices — and anecdotally, we typically see theft increase in times of economic uncertainty.

Long story short: Your small grocery store probably isn’t going to be the target of flash robberies or gangs of professional hijackers — but it’s still a good idea to have theft-prevention strategies in place to protect your reputation and bottom line.

Organized Retail Theft: Common Grocery Store Targets

Here are the most common targets of ORT:

Of course, these aren’t the only types of items that might be targeted, especially if you run a specialty or international market. We’ll go into how to spot your high-risk items below.

7 Actionable Tips To Prevent ORT at Your Grocery Store

Unfortunately, a small amount of shoplifting is inevitable — but the impact of ORT is much higher. Here are seven steps you can take to reduce your ORT risk and protect your business.

1. Use Inventory Reports To Spot Problem Departments

Most of our tips focus on playing strong defense to prevent theft. But first, it’s vital to get a handle on any ongoing theft happening right under your nose.

If you already have a comprehensive, digital inventory list, you’re halfway there. Use the inventory management software in your grocery store point of sale (POS) system to identify departments with high shrinkage.

Some POS systems (including IT Retail) generate shrinkage reports automatically. But you can also compare inventory on hand, sales, and received goods to find discrepancies.

It’s worth noting that most grocery store shrinkage isn’t the result of theft, but food spoilage. Poor storage practices or overordering perishable inventory are the top culprits.

If you find any shrinkage that can’t be explained by food spoilage or honest mistakes, it might be an undiscovered theft problem. When installing anti-theft devices or cameras, this data helps you pinpoint which areas and products need them most.

2. Implement Employee Access Controls To Prevent Employee Theft

Great staff separates a great neighborhood grocery store from a lifeless chain — but staffing is highly seasonal, and a lot of people have potential access to your goods and key systems. It’s important to lock down your business against bad actors.

One of the easiest ways to do this is to set up employee access controls in your grocery store management system. Access controls limit staff to only the systems they need to do their jobs. For example, a cashier or a shelf stocker probably doesn’t need access to purchase order (PO) creation or inventory editing.

This limits the chances of someone manipulating your inventory system to hide theft or putting in POs they shouldn’t. Employee access also requires a login, so you have a paper trail of which employees used what system and when.

3. Track Vendor Orders To Spot Potential Cargo or Stockroom Theft

Keep a close eye on your vendor order history to spot cargo or employee theft. Use your reports to look at your PO history, keeping an eye out for instances where the PO doesn’t match what showed up at your store.

You shouldn’t suspect theft every time a shipment shows up with missing items, though. Mistakes happen. That’s why taking a data-driven approach is so important. Look for patterns. Do shipments with missing items tend to happen:

• On certain days?
• When certain employees are assigned to receive or on stocking duty?
• When they come from particular suppliers or vendors?

If you notice a correlation on the vendor level, it’s worth letting them know. Organized retail crime is often perpetrated by drivers or other people along the supermarket supply chain.

4. Invest in Security Cameras for Aisles and Receiving Areas

Security cameras are common in grocery stores for a reason: They work. If you don’t have security cameras currently, here are the two top reasons you should invest:

1. Deterrence: For shoplifters in store or thieves stealing from offloading areas, visible security cameras discourage theft 50% of the time.
2. Evidence: The data from your POS system helps you spot irregularities, but at the end of the day, data is just numbers. Having visual evidence to back up your suspicions is essential to bring any criminal charges or punitive action.

The point of a security camera is loss prevention, not employee monitoring. Keep cameras limited to aisles and receiving areas, not offices or staff rest areas.

Related Read: What Is Skip Scanning? Loss Prevention Tips for Grocery Store Owners

5. Train Staff To Spot Common Fraud Tactics and Have Clear Return Policies

When most people think of ORT, they think of masked criminals lifting boxes off of trucks and escaping into the night. In reality, the most common retail fraud happens right at the register.

Training staff about scams and having clear return policies helps keep your store safe.

Train staff to be on the lookout for common retail fraud tactics like:

• Buying excessive gift cards: In this case, it’s not your store that may be scammed, but an innocent person in the area. Limit the number of gift cards a single customer can buy and make sure to put up signage about gift card scams.
• Trying to return large purchases: Many people steal merchandise from a store, then try to return it for store credit or cash. Requiring manager approval and/or receipts for returns over a certain amount helps prevent this. Also, keeping detailed transaction history protects against phony receipts.
• Tag switching: Staff should compare what they’re scanning with what shows up on their touchscreen. Awareness of tag switching (barcode swapping) is the best way to prevent fraud.
• Suspicious credit cards: Some people load credit card info onto another device or insist on swiping a card instead of inserting a chip or tapping. These can be signs of someone using a stolen credit card.

These days, you and your employees should be on the lookout for online scams as well — AI has made them harder to detect. Watch out for emails (even from addresses you recognize) that demand payment or purchase orders you aren’t expecting.

6. Communicate With Other Local Businesses and Law Enforcement

Sometimes ORT is confined to certain locations or geographic areas. Stay in touch with other local businesses to learn of any potential theft in your area before it reaches your store.

Other local business owners are a good sounding board for anti-theft techniques or first-person experiences you might not have thought of otherwise.

Work closely with local law enforcement to share information about suspected ORT activities and stay up to date on the latest crime trends. If you’re the victim of a crime, having transaction data or security footage to back it up goes a long way in helping the police move forward with their investigation.

7. Lock Up High-Value Items or Put Them in Highly-Visible Areas

If you carry high-value or age-restricted items (e.g., liquor or tobacco), consider putting them behind a counter or locking them up using security tags or in a case.

Of course, weigh out the benefits against the impact these actions will have on the customer experience. If you’ve successfully sold liquor for over a decade with only one or two instances of theft, suddenly locking up your liquor aisle isn’t going to help (and might annoy your customers).

Instead of a locked display case, you can use security tags for high-risk items that can only be removed with special tools at the register.

That said, the easiest (and least expensive) way of keeping your high-value items safe is to put them in more visible areas. People are less likely to try stealing if they know they’re being watched. Put high-risk items in sight of the register or other staffed areas, and install mirrors and cameras to make it easier to keep an eye on them.

Related Read: Small Grocery Store Layout: 5 Mistakes That Cost You Sales

Prevent Organized Retail Theft With Better Inventory Visibility

An effective theft prevention strategy is made up of many moving parts. Outside of staff training, one of the least costly methods to spot large-scale theft is through better visibility.

A modern inventory management system makes it easy to spot stocking irregularities, whether they’re from theft, spoilage, or mistakes. A great inventory system isn’t just for theft prevention, though. It also helps you reduce operating costs, spot seasonal trends, and create a better checkout experience.

Schedule a personalized demo today to see how IT Retail’s specialized grocery store software can simplify daily tasks and keep your store safe.