The Impact of Organized Retail Crime
The impact of organized retail crime appears to be restricted to financial losses to retailers. However, the economic impact extends beyond the retail industry and affects costs experienced by customers and taxes lost by the local municipalities. The theft of stolen food related items or health and beauty products can pose safety risks to consumers purchasing such goods from organized retail crime fences. Some industry experts and policy makers have expressed concerns about the possibility that profits from organized retail crime activities may be used to fund terrorist activities.
Financial Losses
The precise loss from organized retail crime to the retail industry is a mystery. As of April 2007, the FBI …show more content…
In order to increase merchandise security, avoid future losses, and recover the lost profits from organized retail crime, stores take measures such as hiring additional loss prevention personnel and security forces or increasing the price of merchandise. These costs are then endured by customers. The price increase may result in some customers declining to purchase a particular product, which may then result in a loss in sales and income for the stores. Retailers may also lock up "hot” products, which, in addition to making the merchandise harder to steal, makes it more difficult for customers to shop and purchase the products. In other cases, the merchandises are simply not available for the consumer to purchase because the complete inventory of the merchandise has been stolen by boosters. In addition to the cost of organized retail crime to stores and customers, organized retail crime can adversely affect tax revenues. When merchandise is stolen rather than bought, the state does not collect sales tax on the …show more content…
Federal concern over the association between organized retail crime and terrorism existed even before the terrorist attacks of September 11, 2001. Federal agents have traced the illegal proceeds from organized retail crime, explicitly from the theft and resale of baby formula, to terrorist and insurgent groups, including Hamas and Hezbollah. Following the terrorist attacks of 2001, the former United States Customs Service established Operation Green Quest, a now-defunct, multi-agency terrorist supporting task force, to combat the numerous sources of terrorist funding; one such source was identified as the theft, alteration, and resale of infant baby formula. There are uncertainties that profits from organized retail crime rings have been sent to certain countries to fund terrorist groups. It is significant to note that no members of organized retail crime rings discussed in the organized retail crime literature have been convicted of supplying measureable support to terrorist groups. Nonetheless, there are occurrences in which revenues, often from the sale of stolen infant baby formula, have been transported to certain countries known to support terrorist groups. Yet it has not been determined whether these revenues have eventually been conveyed to terrorist
The impact of organized retail crime appears to be restricted to financial losses to retailers. However, the economic impact extends beyond the retail industry and affects costs experienced by customers and taxes lost by the local municipalities. The theft of stolen food related items or health and beauty products can pose safety risks to consumers purchasing such goods from organized retail crime fences. Some industry experts and policy makers have expressed concerns about the possibility that profits from organized retail crime activities may be used to fund terrorist activities.
Financial Losses
The precise loss from organized retail crime to the retail industry is a mystery. As of April 2007, the FBI …show more content…
In order to increase merchandise security, avoid future losses, and recover the lost profits from organized retail crime, stores take measures such as hiring additional loss prevention personnel and security forces or increasing the price of merchandise. These costs are then endured by customers. The price increase may result in some customers declining to purchase a particular product, which may then result in a loss in sales and income for the stores. Retailers may also lock up "hot” products, which, in addition to making the merchandise harder to steal, makes it more difficult for customers to shop and purchase the products. In other cases, the merchandises are simply not available for the consumer to purchase because the complete inventory of the merchandise has been stolen by boosters. In addition to the cost of organized retail crime to stores and customers, organized retail crime can adversely affect tax revenues. When merchandise is stolen rather than bought, the state does not collect sales tax on the …show more content…
Federal concern over the association between organized retail crime and terrorism existed even before the terrorist attacks of September 11, 2001. Federal agents have traced the illegal proceeds from organized retail crime, explicitly from the theft and resale of baby formula, to terrorist and insurgent groups, including Hamas and Hezbollah. Following the terrorist attacks of 2001, the former United States Customs Service established Operation Green Quest, a now-defunct, multi-agency terrorist supporting task force, to combat the numerous sources of terrorist funding; one such source was identified as the theft, alteration, and resale of infant baby formula. There are uncertainties that profits from organized retail crime rings have been sent to certain countries to fund terrorist groups. It is significant to note that no members of organized retail crime rings discussed in the organized retail crime literature have been convicted of supplying measureable support to terrorist groups. Nonetheless, there are occurrences in which revenues, often from the sale of stolen infant baby formula, have been transported to certain countries known to support terrorist groups. Yet it has not been determined whether these revenues have eventually been conveyed to terrorist