Victoria Police on Friday revealed it had arrested 19 people who allegedly shoplifted more than $10 million worth of goods.
The syndicate allegedly targeted major supermarkets, stealing baby formula, medicines, vitamins, skincare products, electric toothbrushes and toiletries.
The Australian Retailers Association said shops were under attack across the nation.
"The number of attacks has intensified this year. Retail crime has been an ongoing challenge for a number of years now," association chief industry affairs officer Fleur Brown told AAP.
"Victoria is an absolute hotspot."
Retail theft is one of the fastest-growing crimes in the state, with more than 40,000 offences recorded in the past year, a 38 per cent increase state-wide.
The association said 70 per cent of retailers had reported an increase in theft over the past year.
Ms Brown said there was no single solution to the rising crime rate, advocating for a multi-pronged approach.
"Dedicated police resources are a really important part of that recipe," she said.
"We also would like to see the acceleration of retail crime legislation by the government, using examples of best practice legislation that are working successfully in other jurisdictions."
Victoria Police said it had charged multiple people after undertaking Operation Supernova.
Detective Acting Inspector Rachele Ciavarella alleged the syndicate was part of a co-ordinated criminal enterprise profiting from stolen goods.
"Those arrested are predominantly Indian nationals on temporary, student, or bridging visas," police said in a statement.
"They are alleged to be working in a co-ordinated network to supply stolen goods to 'receivers', who then on-sell the products to end users for profit."
The operation to smash the syndicate was led by the Box Hill divisional response unit, which worked with retailers and the Australian Border Force.
Investigations remain ongoing, with further arrests anticipated.
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