LA City Attorney and LAPD Partner with ALTO US to Battle the Growing Problem of ORC

They strike quickly, criminals who are becoming increasingly more brazen and dangerous as they grab highly sought-after product from store shelves, ripping off retailers and reselling it for financial gain. Organized retail crime (ORC) is happening more often and cost the overall US retail economy $49.8 billion in losses in 2017, according to a study by the National Retail Federation.

Los Angeles City Attorney Mike Feuer, the Los Angeles Police Department (LAPD) and ALTO US have recently announced they are teaming up to implement a retail risk management solution, ALTO Alliance℠, a technology platform with comprehensive analytics that ties together retailers’ data with industry-wide resources, efficiently bridging the gap between retail, law enforcement, and the judicial system to prosecute repeat offenders and organized retail crime gangs.

“This new technology tool will greatly enhance our petty theft prosecutions by collecting and organizing the evidence needed for successful prosecutions, allowing us to focus our resources on repeat offenders while maximizing rehabilitation opportunities for first offenders,” said Mary Clare Molidor, chief of the Los Angeles City Attorney’s Criminal Branch.

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Los Angeles ranks as the number-one city in the United States for ORC, according to the National Retail Federation 2017 Organized Retail Crime survey. The survey found:

  • ORC continues to pose a serious threat to retailers, with 9 in 10 reported having been a victim of ORC in the past 12 months.
  • ORC costs retailers an average of $726,351 per every $1 billion in sales.
  • Aggression shown by ORC gangs continues to rise. More than 25 percent of retailers report those involved in organized retail crime are exhibiting a greater tendency towards violent behavior.

“Retail theft hurts not only local businesses, but all Los Angeles consumers, and that is why the LAPD will continue to collaborate with a variety of partners both public and private,” said LAPD Commander Blake Chow, Information Technology Group. “This initiative exemplifies the Department’s commitment to “smart” policing and a data driven approach that best leverages our city’s resources.”

“I have been very impressed with the sincere desire displayed by both the Los Angeles Police Department and City Attorney’s office to partner with ALTO to address the growing problem of retail theft that is sweeping the nation,” said Karl Langhorst, CPP, CFI, executive vice president for ALTO US. “These agencies realize that recidivist retail theft offenders don’t just cause significant losses for retailers but also negatively impact community safety. ALTO is honored to provide its services at no cost to the City of Los Angeles, and to have the opportunity to provide the innovative Alliance℠ solution to the LAPD, city prosecutors, and retailers—uniting these entities in their efforts to reduce crime and provide safer communities.”

Proactively addressing the problem of organized retail theft and shoplifting, by partnering with local law enforcement and the criminal justice system, is ALTO Alliance retailer Albertsons Companies.

“Retailers have struggled to find a solution to reduce shoplifting and manage risks in stores,” said Kathleen Smith, CFI, vice president of loss prevention for Albertsons Companies. “The ALTO program has designed a strategy that effectively brings law enforcement, prosecutors, and retailers together, with a goal of reducing crime in stores while enhancing our shoppers’ experience.”

These partnerships are significant as ALTO opens operations in North America after more than a decade serving retailers and law enforcement in Latin America and Spain, reportedly with proven success. Major retailers in four countries with over 7,000 locations have indicated that the ALTO Alliance solution reportedly reduces offender recidivism, lowers retail shrink with a positive return on investment, improves employee productivity and morale, enhances store safety and customer service, while partnering with law enforcement to lower the community crime rate.

ALTO has also developed an effective deterrence marketing program to put criminals on notice – stealing from retailers using the ALTO program could mean more time behind bars.

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