Retail theft, also known as "shrink," includes losses from stolen, damaged, or wasted inventory, and has historically been a challenge for retailers. The impact on profitability has worsened with a sharp uptick in shoplifting, coinciding with the cost-of-living crisis and predating the COVID-19 pandemic. Consequently, retailers are now facing a 33% surge in losses across all categories, with theft rates at a 20-year high.
UK retail sector under siege
In the UK, the situation is particularly dire. A study by Thruvision and Retail Economics estimated that retail theft will cost a staggering £7.9 billion in 2023. Out of this, thefts by shoppers contributed £4.7 billion, while internal thefts by employees in distribution centres and stores added another £3.2 billion to the total. The pressure on UK retailers is mounting as they try to navigate these unprecedented losses.
A spike in shoplifting incidents
Data from the Office for National Statistics (UK) paints a concerning picture of the escalating shoplifting crisis. In 2023/24, nearly 444,000 shoplifting offences were recorded by the police in England and Wales, marking the highest count in the observed timeframe. Shoplifting incidents, which began to climb in 2013/14, hit a peak of approximately 382,607 in 2017/18 before seeing a temporary decline in subsequent years. However, the trend has once again reversed, underscoring the urgent need for effective countermeasures.
Scenario in the UK’s local shops
The Association of Convenience Stores' 2024 Crime Report reveals a record 5.6million incidents of shop theft in the past year, up from 1.1 million in 2022. Retailers have faced over 600 theft incidents per hour and a surge in violent attacks, with 76,000 violent incidents reported, compared to 41,000 the previous year. Despite spending £339 million on crime prevention measures like CCTV and security, retailers are calling for more government and police action to address the growing crisis.
The cost of shrinkage
Retailers across the spectrum are feeling the pinch of shrinkage. According to Deloitte, a leading UK premium grocery retailer tallies shrinkage as a £100 million annual issue, with theft accounting for £40 million of that sum. Meanwhile, a Dutch retailer grapples with a staggering €100 million in stock theft alone each year. These figures underscore the financial strain that theft imposes on retailers, particularly those in the grocery sector.
Innovative solutions and collaborations
Major organisations are not taking this challenge lying down. In a bid to enhance security, Lidl GB announced in November 2023 that it would deploy new security technology across its more than 960 stores in Great Britain, investing over £2 million in this initiative. Co-op has integrated AI with CCTV cameras to monitor items placed in bags at self-checkouts. Meanwhile, Sainsbury's has implemented electronic security cabinets in some stores' alcohol sections to enhance theft prevention efforts.
Similarly, Loblaws, a Canadian grocery chain, has introduced a pilot program that requires customers to scan their receipts before leaving the store, a move aimed at curbing theft. In New Zealand, Woolworths has teamed up with loss prevention firm Auror to tackle a sixfold increase in aggressive incidents within its stores. Additionally, the Japan-based discount chain Trail Company has improved its employee training and produced educational videos to arm its staff against shoplifting tactics.
Jisp: Standing up against retail theft
At Jisp, we are committed to fighting retail theft and supporting the hard-working independent retailers who face this issue daily. With the cost-of-living crisis exacerbating the problem, many small convenience stores are struggling to cope with rising thefts. Jisp is dedicated to addressing this challenge by directly reducing prices and making shopping at these stores more affordable.
By helping to lower costs while increasing retailer margins, Jisp not only aids consumers but also helps to mitigate the impact of theft, supporting retailers in their fight against crime. Our efforts are designed to make a tangible difference in reducing the financial strain on small businesses and fostering a more secure shopping environment.
Esther Lawrence, Retail Director, emphasises the importance of community stores: “We recognise the essential role that convenience stores play in our communities.It is crucial that we encourage kind and respectful behaviour in shops and support these valuable businesses during challenging times.”
