Why are retail crime and shoplifting on the rise?

Throughout 2023, the problem of retail crime hit the headlines. The 2023 Crime Survey by the British Retail Consortium (BRC) found that retail crime had cost businesses £1.76bn during the 12-month period to April, and more than 850 incidents of violence or abuse against retail staff are reportedly happening every single day. What’s more, a separate BRC survey of members found that levels of shoplifting in 10 major cities had risen by an average of 27%.

According to professor Adrian Beck, who has led research on shoplifting for ECR Retail Loss, retailers have seen a “significant” uptick in the levels of loss they’re experiencing, with between a quarter and a third increase in the past year. Although his research focuses on larger retailers, Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), says all corners of the retail industry have been affected. A survey of the group’s members has shown the level of crime they’re experiencing has doubled. “It also seems that almost any product is a potential target, and the criminals are emboldened in their approach,” he told Speciality Food.

What’s behind the rise in shoplifting in the UK?

While retail crime has long been an issue, Adrian said a “perfect storm” of several factors have come together this year to drive up figures.

First is the cost-of-living crisis, which has caused a larger proportion of people to struggle economically, potentially leading some to shoplift. 

Perhaps more concerning for retailers, however, is the rise in incidents of “out and out looting of stores,” Adrian said. “It’s not new,” he explained – in the 1990s it was known as ‘steaming’ – “but what is different is we’re more likely to see it on social media than we’ve ever seen it before.” When incidents go viral, it can both given the impression that this is happening more than it actually is, and it can also show others that shoplifting is easy, with little consequence. “Very rarely do you see anybody getting arrested when these incidents happen,” Adrian continued.

At the same time, there is a “growing concern that the police response is less than adequate,” he said, noting there seem to be fewer police on the beat these days. “It’s a little bit like boiling a frog in some respects. Initially, you don’t really notice as you strip out the numbers, because people try to manage and cope. But over time, it begins to become more and more impactful, and people recognise that there are lots of vulnerabilities.”

As well as these factors that are outside retailers’ control, another part of the problem could be down to business decisions the larger retailers have themselves made; namely moving towards self-service tills. With self-checkouts, where once a retailer might have had dozens of people working the tills, that space could now be operated by just a handful. “You’ve lost a lot of guardianship by having fewer people,” Adrian said. Elsewhere, retailers have tried to reduce the friction in their shopping experience. “But there is always a price to pay for this sort of thing,” he continued. “As you reduce the controls you have in place, you inevitably increase the opportunities [for shoplifting] and the risks associated with that.”

What’s being done about retail crime?

Groups including the BRC, Bira and the retail trade union Usdaw have been among those calling for urgent action from the government. “Retailer workers are suffering while government dithers,” Helen Dickinson, CEO of the BRC, said during Respect for Shopworkers’ Week in November. “We need a new statutory offence of assaulting, threatening, or abusing a retail worker. This would act as a deterrent and provide a clear message that government will not tolerate this behaviour. It would also require police forces to record all incidents of retail crime, allowing for better allocation of resources to the issue.” 

For one major retailer, the police’s own data shows that they failed to respond to 73% of serious retail crimes that were reported, the BRC says, and 44% of retailers in its annual crime survey rated the police response as ‘poor’ or ‘very poor’.

In October, the government announced an action plan to tackle shoplifting, which includes a police commitment to prioritise urgently attending the scene of shoplifting instances involving violence against a shopworker, where security guards have detained an offender, or where attendance is needed to secure evidence.

A specialist new police team called Pegasus is also being created to build a “comprehensive intelligence picture of the organised crime gangs that fuel many shoplifting incidents across the country, to help target and dismantle them,” the Home Office said. This is backed by retailers including John Lewis, the Co-op and M&S.

While recognising that any extra help is welcomed by the retail community, Adrian says focusing on prevention could be more effective than trying to “arrest your way out of a loss problem”.

“Retailers have to think ultimately how they’re going to protect their own environment, think through the consequences of the business choices that they’ve made, and work out what is the best way in which to protect it.” This could include looking at how they are marketing and designing their stores, to how they are using technology and staff in their spaces.

For independent retailers, Andrew says it is important that they and other local businesses work together to deal with the problem. He suggested, for instance, setting up WhatsApp groups so they can warn each other if criminals are active on their street. “The shops also need to think how they display products, making it harder for them to be stolen.”

Andrew also called for a more proactive response from the police towards retail crime. “Above all else we need to see police presence on the high streets,” he told Speciality Food.

In a recent open letter, Nisa managing director Peter Batt and head of retail Victoria Lockie urged the government to make sure independent retailers weren’t “left behind in the race to tackle retail crime”.
 
“Independent retailers are the beating hearts of high streets across the country, and if we want to ensure they are still there for the communities they serve, then action needs to be taken now,” they wrote.

Has your business been affected by retail crime? Share your experiences with Speciality Food by contacting courtney.goldsmith@artichokehq.com.