‘Halting retail crime epidemic will need a broad approach’

The surge in shoplifting is becoming an urgent issue for retailers. With the crime up 25% in the past year, the police recorded more than 365,000 theft offences against businesses, putting staff and profits at risk.

Retailers are sounding the alarm. The Co-op noted that thieves cost it £33m in the first half of 2023, while Dame Sharon White, outgoing chair of John Lewis Partnership, recently labelled shoplifting an “epidemic” that cost her business an additional £12m year on year.

Beyond the direct effect on the bottom line, shoplifting has had a devastating impact on staff morale.

The Retail Trust found that 80% of retail employees experienced a deterioration in wellbeing in the past year.

For an industry struggling to attract and retain people in sufficient numbers, ensuring the safety and wellbeing of store staff becomes even more critical.

The wholesale and retail sector accounted for the second-largest number of job vacancies in the UK labour market, higher than prior to the pandemic.

The rise of organised retail theft

While there is a general assumption that the surge in shoplifting is the direct result of the cost-of-living crisis, evidence suggests otherwise.

About two-thirds of those stealing from local shops are repeat offenders, some with connections to organised crime, according to a report by the Association of Convenience Stores.

“Retailers say poor police response and insufficient penalties have also emboldened thieves, who see the crime as low-risk and high-reward”

Shoplifters are sharing tips on social media with TikTok videos offering advice on how to steal, where to hide the goods and even rating stores based on how easy it is to steal from them.

Retailers say poor police response and insufficient penalties have also emboldened thieves, who see the crime as low-risk and high-reward.

Following calls for stronger action against them, a taskforce between the government, the police and the 13 biggest retailers launched in October.

However, given the scale of the challenge, companies also need to take steps of their own to ensure the safety of their staff and minimise loss of inventory.

Bodycams and dummy detergent

Retailers are taking various initiatives to tackle the issue such as investing in bodycams, CCTV cameras and security guards.

The Co-op has rolled out other covert measures to deter shoplifters, including hiring undercover security guards and using dummy display packaging – empty boxes of targeted products such as laundry detergent, coffee and high-value chocolates – which can be swapped for the actual product at the till.

Yet, for many retailers, shrinkage is on the rise. A British Retail Consortium survey estimated that £953m was lost to customer theft in the UK between 2021 and 2022.

Retailers in urban areas bore the brunt, with incidents of theft there rising as much as 68% in the past year.

The way forward

Retailers will need to periodically assess the cost of spending on anti-theft measures versus their effectiveness in ensuring staff safety and reducing inventory loss.

But they must also adopt optimal store designs and equip staff with the right training and incentives to navigate incidents.

Controlling entry and exit points is one of the store design measures that can reduce shoplifting. This includes reducing the height of shelving where possible to increase visibility, particularly where customers enter and exit the store; identifying and fixing blind spots (with convex mirrors, for example); and ensuring the inside of the store is clearly visible from the outside.

“83% of line managers surveyed would value more training on how to use tools to help them support their teams’ wellbeing, such as training in de-escalation techniques”

Training customer-facing staff as well as line managers is also crucial, given the increase in incidents of abuse and violent behaviour.

According to the Retail Trust, 83% of line managers surveyed said they would value more training on how to use tools to help them support their teams’ wellbeing, such as training in de-escalation techniques and post-incident support. Building relationships with local police forces is also key, and initiatives such as Pegasus are steps towards the right direction.

One silver lining is that overall shoplifting numbers look less dire when adjusted for the big drop seen during the Covid-19 lockdowns.

Still, there has been a longer-term increase in retail crime over the past decade. Curbing it will take a broad approach that not only deters shoplifters and penalises offenders more stringently but, most importantly, keeps retail workers safe.