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.
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:
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.
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.
Here are the most common targets of ORT:
| Category | Why it's a target |
|---|---|
| Health & cosmetics | Health and beauty products tend to be small and easy to steal from shelves or the stock room. Depending on the product, they also carry a high resale margin. |
| Supplements & pharmaceuticals | Expensive supplements and pharmacy products are commonly sought after by thieves for resale. |
| Meat & dairy | High-quality meats and cheeses (e.g., wagyu, ribeyes, specialty cheeses) are common OTC targets, particularly for ticket switching. |
| Expensive, shelf-stable items | Shelf-stable, high-price-point products are frequent targets for both cargo theft and return fraud. |
| Alcohol & spirits | Beer, wine, and liquor are common theft targets — both for resale and among underage shoppers. |
| Infant formula | Baby formula is a surprisingly common — and highly lucrative — theft target, with an active gray market for stolen infant supplies. |
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.
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.
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.
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.
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:
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.
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:
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
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:
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.
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.
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
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.