Losses for the retail industry from crime, violence and theft topped out at 112.1 billion in 2022, up from $93.9 billion in 2021, according to a recent survey.

A report published September 26 by the National Retail Federation (NRF), entitled “2023 Retail Security Survey,” found that the average shrink/shrinkage rate — the measurement of losses calculated by a retailer over a specific period of time — for the 2022 fiscal year grew to 1.6% from 1.4% in 2021, aligning with rates seen in 2020 and 2019. Internal and external theft accounted for 64% of retailers’ shrinkage in 2022.

Organized retail crime (ORC) is also becoming more violent with 67% of survey responders claiming they have seen an increase in violence and aggression from ORC perpetrators in 2022 when compared to 2021.

Los Angeles, California was named the city that was most affected by organized retail crime in 2022, marking the fifth consecutive fiscal year that LA was the city most impacted by ORC. San Francisco/Oakland, California came in second place on 2022’s list followed by Houston, Texas, New York, New York and Seattle, Washington.

The growing crime rate within the retail sector has caused companies to limit their operations and availabilities. Almost half of the responders (45%) said they have been forced to reduce their operating hours at some locations. Almost a third (30%) of businesses have chosen to alter the availability of products in stores. An additional 28% said they have elected to close some of their locations entirely to combat retail theft and crime.

“Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire,” said David Johnston, the vice president of Asset Protection and Retail Operations for the NRF, the U.S.'s largest private-sector employer with companies that contribute $3.9 trillion to the nation's annual GDP. “Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category.”

The 2023 National Retail Security Survey was created in partnership with the Loss Prevention Research Council and sponsored by Appriss Retail. The survey contains insights from 177 retail brands that accounted for $1.6 trillion in sales during 2022. The represented brands cover 28 different retail sectors and have 97,000 retail locations across the United States. Interviews for the report were conducted between May and July of 2023.