NRF retracts key claim on ‘organized’ retail crime: report

The world’s largest retail trade association, National Retail Federation (NRF) recently found itself in the spotlight for a significant correction regarding inventory loss figures.

Last Updated on December 8, 2023 by RETAILBOSS
National Retail Federation retracts retail theft
Last Updated on December 8, 2023 by RETAILBOSS

The world's largest retail trade association, National Retail Federation (NRF) recently found itself in the spotlight for a significant correction regarding inventory loss figures. Initially, the NRF reported that nearly half of the $94.5 billion in industry shrink—a term encompassing inventory loss due to various factors—was attributed to organized retail crime (ORC). This claim was widely circulated and contributed to a heightened sense of urgency around retail theft.

However, upon closer examination, the NRF recognized that this assertion was based on flawed data. The NRF retracted its earlier statement to maintain transparency and accuracy, clarifying that the analysis leading to the claim was incorrect. The revised report significantly downplays the role of ORC in overall inventory shrinkage, acknowledging that the actual impact of theft, fraud, and damage was over 3%.


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This correction comes against a broader conversation about retail shrink and its impact on the industry. According to the 2023 National Retail Security Survey, retail theft losses swelled to $112.1 billion in 2022, a 19% increase from the previous year. Theft, internal and external, accounts for nearly two-thirds of retailers' shrink, with the average shrink percentage representing a substantial financial hit to the industry.

The NRF's initial overestimation of ORC's contribution to inventory loss had the potential to skew public perception and policy discussions. It is a reminder of the importance of accurate data in shaping responses to complex issues like retail crime. The NRF has since taken steps to address the broader issue of retail crime, urging Congress to advance the Combating Organised Retail Crime Act, which aims to better equip lawmakers on how to deal with the growing problem estimated to be a $100 billion challenge.

For more information on the NRF's activities, advocacy efforts, and educational initiatives, or to get involved with their campaigns, visit their official website or contact their headquarters in Washington, D.C.