Organized retail crime (ORC) costs California businesses billions of dollars each year. In 2024 alone, losses hit $7.8 billion, and there's little to suggest the situation is getting any better.
The National Retail Federation's (NRF) Impact of Retail Theft and Violence report found that ORC is the top security threat for retail operators in the U.S, with California consistently mentioned as one of the most affected states.
Unlike opportunistic shoplifting, organized retail crime is usually carried out by criminal networks or groups that plan their operations ahead of time and assign specific roles to certain members, such as "boosters" and "fences". The FBI defines organized retail theft as large-scale theft of retail merchandise, stolen with the intent to resell the items for financial gain.
In this article, we'll take a closer look at how serious the problem has become in California, what's causing it, which businesses face the greatest risk, and how mobile surveillance solutions are helping operators fight back against criminals.
How Big Is the Organized Retail Crime Problem in California?
California is dealing with an ORC crisis that shows no signs of slowing down. Across the entire retail industry, losses from shrinkage have been climbing at a troubling pace. The NRF's National Retail Security Survey reported that inventory shrinkage reached $112.1 billion across the country in 2022, representing 1.6% of total retail sales.
More recent data from the NRF showed that retailers saw a 19% increase in shoplifting offenses in 2024 compared to 2023, with 67% of retailers reporting ORC groups' direct involvement in theft-related charges against their companies.
The California Attorney General's Office tracks state-wide retail crime data and shows that California's rates place it among the most heavily impacted states in the country. States like Florida, Texas, New York, and Illinois also have significant ORC activity, but California's combination of high-value retail businesses and population density makes the state particularly vulnerable.
High-profile incidents in California
With the number of organized retail theft cases in California skyrocketing, multiple incidents have made national headlines.
In August 2025, Southern California law enforcement officers announced the arrest of 14 individuals connected to the largest Home Depot theft ring in the company's history. The group was linked to over 600 thefts across 71 locations, with losses well above $10 million in multiple Southern California counties.
In 2024 alone, the California Highway Patrol's (CHP) Organized Retail Crime Task Force conducted a record-breaking 879 investigations and made over 1,700 arrests. As a result, they recovered more than 676,000 stolen items valued at around $13.5 million.
ORC trends: Is it getting worse?
The scale of California's law enforcement response tells you everything about how deep this problem runs. In March 2026, the California Governor's office announced that the CHP-led Task Force had conducted 75 investigations, made 35 arrests, and recovered more than 33,000 stolen items valued at over $3.3 million in just 2 months.
Earlier in the year, it was also reported that from October 2023 to September 2025, state-funded law enforcement efforts resulted in 29,060 arrests and the recovery of over $226 million in stolen property.
As these numbers keep rising at an alarming pace, it’s becoming increasingly clear that California businesses need stronger, more reliable security systems sooner rather than later.
What Is Causing the Rise of Organized Retail Crime in California?
A combination of legal and economic factors has turned the state into an easy target for organized retail theft groups.
Legislation and prosecution thresholds
Passed by voters in November 2014, California's Proposition 47 reclassified the theft of goods valued at under $950 as a misdemeanor (petty theft) rather than felony theft.
ORC groups used this to adapt and structure individual theft operations involving one or more persons to fall beneath the $950 mark, while the combined losses across multiple incidents remained substantial. Repeat offenders also faced minimal prosecution under the law, which resulted in more brazen and frequent organized retail theft activity.
In November 2024, California voters passed Proposition 36, which helped to extend felony penalties for repeat offenders, although the full effect of this legislation is still under assessment (and scrutiny) as criminal groups continue to commit organized retail theft at scale.
The growth of online marketplaces
Online marketplaces and resale platforms have made it easier for ORC groups to turn stolen property into cash. Rather than relying on physical markets or back-channel buyers, these networks now use peer-to-peer selling apps to move stolen merchandise.
Group members known as "boosters" are hired to steal merchandise from targeted retail stores and other businesses, while "fences" are tasked with selling the merchandise stolen from multiple operations. According to the Retail Industry Leaders Association (RILA), this can be done quickly and anonymously online, with a low risk of detection, and has been labeled as "e-fencing".
The INFORM Consumers Act, which took effect in June 2023, made seller verification requirements stricter on major online marketplaces, but this doesn't appear to have made a meaningful dent in the problem.
Population density and high-value retail numbers
California's major metro areas, including Los Angeles, San Francisco, San Diego, and Sacramento, have some of the highest concentrations of high-value retail targets in the country.
Having so many stores packed closely together makes coordinated theft operations much simpler from a logistics standpoint. Entry and exit routes in populated retail corridors also limit the effectiveness of traditional, fixed security measures, making mobile surveillance the only viable option for reducing ORC-related thefts.
Understaffed loss prevention
Many retailers across California are operating with significantly fewer loss-prevention staff than they need, and that gap has become one of the biggest vulnerabilities ORC groups exploit. When stores don't have enough trained personnel watching the floor, organized groups can move through a location with little to no resistance.
The NRF's retail theft research backs this up, finding that 64% of retailers reported less than half of store-related theft incidents to law enforcement officers. The main reason for not reporting was that law enforcement response was inadequate, meaning even when staff did flag an incident, the follow-through wasn't there.
Other reasons for not reporting these offenses include:
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The monetary loss is below the felony threshold of $950
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A lack of evidence to provide to law enforcement officers
With 44% of retailers citing "a lack of evidence" as their reason for leaving thefts unreported, the importance of having a good security system in place becomes virtually impossible to ignore.
Most Commonly Targeted Retail Goods
ORC groups are selective, and the goods they target consistently share 2 major traits:
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They have a high resale value
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They're easily portable.
Electronics and over-the-counter medications are at the top of the list, and the U.S Government Accountability Office also highlights infant formula and health and beauty products as frequent targets, partly because they're compact and partly because they have accessible secondary markets.
Items such as clothing and apparel, cosmetics, power tools, and everyday high-value goods like razors are also at risk. Any store that stocks several of these product categories in a high-traffic location is significantly more exposed to ORC activity.
However, what a business sells is only part of the equation. Where it's located and how closely it's being watched matter just as much.
Which Businesses and Locations are Most at Risk of ORC?
ORC groups are deliberate about where they operate. They look for locations with predictable security gaps, and will return to those same spots repeatedly unless security systems are upgraded.
Big-box retailers and shopping centers
Large-format retailers and shopping centers with multiple tenants are some of the most frequently targeted environments. With multiple entry and exit points and high foot traffic, organized criminals can easily make a clean getaway. The higher volume of valuable goods in one place also works in the ORC group's favor.
The NRF's organized retail theft research notes that these groups are becoming more active across both physical locations and digital channels, frequently using online marketplaces to fence stolen goods.
Pharmacies and health and beauty retailers
Pharmacies and health and beauty stores are hit hard by organized retail theft. Their inventory tends to be small in size but high in value, and the demand for these products on secondary markets never lets up.
The GAO's organized retail crime report flags certain items (including medication and infant formula) among the most targeted by ORC groups, and notes that these items are often repackaged or improperly handled before resale. This creates a public health risk that extends beyond the financial loss to the retailer itself.
Parking lots and commercial premises
Parking lots are often overlooked, but for ORC groups, they're a key component of successfully carrying out an organized plan. ORC networks use 2 or more persons during a single operation, with members being tasked to either commit theft or aid in removing the stolen merchandise from the premises.
Groups use parking lots as staging areas before the theft takes place and as escape routes immediately afterward, often loading merchandise into waiting vehicles within minutes of the crime. This means that California business owners need to look into addressing parking lot security alongside surveillance inside and/or around any property involved in their business operations.
Read more: A Complete Guide to Parking Lot Security
Vacant or under-monitored retail sites
Vacant properties next to active stores can create blind spots that ORC groups look for. A property with little to no monitoring or surveillance reduces the perceived risk of being caught, giving groups access to neighboring buildings or a place to temporarily store stolen goods.
Vacant properties also have higher exposure to property crimes, such as vandalism, and the financial penalties for failing to put crime deterrence measures in place can be steep. For example, unless vacant property owners in Los Angeles can show a "diligent and good faith effort" to properly secure and maintain the premises, they may face fines of up to $1,000 per day or $100,000 per year.
The Cost of ORC for California Businesses
The financial impact from ORC doesn't stop at the value of what was stolen. RILA's research estimates the total cost to American retailers at over $69 billion per year, with further knock-on effects that can compound quickly.
Insurance premiums increase after repeat incidents, and liability exposure may also increase if staff or customers are harmed during a theft. Stores that develop a reputation for being repeatedly targeted may gradually see their foot traffic decline, compounding the financial damage even more.
The NRF's 2024 study found that many retailers had already changed how they operate as a result, by locking up more merchandise (67%) and adding security staff (59%). Retailers who invest proactively in asset protection surveillance consistently spend less over time than those who retrofit security after an incident.
How California Retailers Can Defend Against Organized Retail Crime
Our mobile surveillance solutions give California retailers a practical way to mitigate ORC activity, without the long lead times or installation costs that come with fixed systems.
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Best For |
Key Capabilities |
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Parking lots and external perimeters |
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Wide retail areas needing elevated coverage |
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Restricted zones and after-hours perimeter monitoring |
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Any site needing 24/7, real-time visibility |
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Cloud-based consolidation with Stellifii |
Multi-site retail operators and property managers |
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Read more: How Do Solar Surveillance Trailers Deter Crime?
Stop Organized Retail Crime Before It Starts
ORC groups in California aren't waiting for a better opportunity. They're already active and looking for the next location with poor security coverage, which means every day without adequate surveillance is an open invitation to criminals.
Our mobile surveillance solutions deploy quickly and cover the environments that ORC groups target the most, scaling with your business as your security needs grow. Contact our security team today to find out which of our solutions are the right fit for your California locations.
