A Rise in Retail Theft: How to Protect your Business Against This

According to a recent survey by the National Retail Foundation (NRF) Retailers reported a 93% increase in the average number of shoplifting incidents per year in 2023 compared to the same period in 2019.

The consequential impact of this has led businesses to struggle, with some even shutting down due to it. 

As communities and store owners are crying out for answers and support to deal with this ever-growing matter, we delve into the reality of retail theft and the devastating impact created from this, looking at the growing trend in organized retail crime (ORC) and the best response to tackle this.

The Cost of Retail Theft on Businesses and Communities

The reality of retail theft goes deeper than just the financial implications it creates, it destroys businesses, people’s lives, and community spirit. Even large businesses such as Walmart are being forced to close stores due to the amount of shoplifting certain locations are faced with.

For many the financial implications will be the main contributing factor to other issues, however, the knock on effect can be damaging, and there are several challenges businesses can be left with:

Financial Loss

According to Capital One Shopping Research, retailers lost $121.6 billion to retail theft in 2023, with projections indicating a worsening impact that could cost retailers over $150 billion in 2026. 

Some States such as Georgia have been hit extremely hard, losing $2.356 billion to retail theft in 2022. 

If financial losses continue at this current rate, prices for products could increase and stricter rules on shoppers could be implemented, impacting many customers’ experiences.

Fear of Employee and Customer Safety

In USDAW’s 2023 Freedom From Fear survey, 18% of retail staff asked, said they had been assaulted and 70% experienced verbal abuse from customers. 

Regular triggers have been linked to when the abuser has been caught shoplifting, often due to the cost of living circumstances. 

Abuse leaves employees and customers at fear for their own safety as aggressive tactics are on the rise with shoplifters.

Store Closures

Walmart closed 24 stores in 2023 due to retail theft according to The Street. The financial impact for all businesses, including large corporate stores is at an all-time high.

For smaller businesses, many are unable to survive heavy shoplifting and the financial loss created for larger businesses can impact the overall health of the company and create long-term damage.

Job Losses 

With a rise in store closures, the number of job losses created due to this is only growing and this has a knock on effect to individuals’ personal lives, their finances, and overall mental health.

It also impacts the economy which if this continues to grow, could change the lives of many across the US, particularly in States where this is more prevalent.

Reputational Damage and Distrust

As much as retail theft is not necessarily down to issues with the retailers, unfortunately, shoppers can still lose trust with a store and not wish to shop there due to this.

If a store is targeted on a regular basis and faces threatening behavior due to this, it can cause long-term reputational damage for them and leave customers with a sense of distrust.

Community Loss

Communities rely on retail stores to provide them with the products they require and boost the vibrancy within the area. 

Customers can build connections with the store and the staff working within them, and if stores face a heavy amount of retail theft this can impact the entire community, especially when it leads to store closures.

It can create a sense of loss within the community and forces customers to travel further in order to get the products they are looking for.

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Understanding the Rise in Retail Theft

There are various attributing factors to the rise in retail theft relating to the economy and inflation, creating hardship for some households.

However, overall, there have been three trends that seem to have steadily increased over recent years for retail stores relating to the rise in theft:

A Growth in Aggressive Tactics and Behaviour

There have been multiple store closures across various States due to concerns for customer and employee safety. This includes big retailers such as Safeway who shut one of their stores in San Francisco after 40 years of operation due to increased theft and safety concerns.

Retail theft has displayed more aggressive tactics over recent years, including assault. This has allowed the number of cases to only rise as employees fear for their safety and thieves look to take advantage of this.

The concern of a security guard or employee of any kind intercepting an active theft is less likely nowadays due to the risk it brings towards their personal safety.

An Increase in Organized Retail Crime

One term that has been frequently mentioned in connection with the rise in retail theft is Organized Retail Crime (ORC). This is the large-scale theft of retail goods for the purpose of reselling them.

Unlike opportunist thieves, ORC is a type of organized crime where professional criminals come together in teams to steal merchandise based on an ‘order’ placed with them or where they see demand.

Types of ORC include truckjacking, cargo theft, smash-and-grab theft, and cargo diversion. 

Crimes such as this have increased due to the high rewards that can be gained from them, and with economical factors placing strain on the general public, some thieves are willing to risk it all in order to financially benefit from it.

The Future of Retail: How to Protect Yourself Against Retail Crime

A surge in retail theft creates a lot of uncertainty with the future of the retail industry. The risk of further store closures and financial losses could lead in-person shopping to fall once again.

Any store could fall victim and be a target for thieves, and the only way to protect yourself from becoming a part of the statistics is to secure your retail site and parking lot.

With 20-years of security experience in parking lot surveillance, LotGuard has supported various retail stores like Goodwill Industries Kentucky to boost their security and prevent theft. 

Upgrading your retail parking lot security can support you in building customer trust and improving their experience, creating a safer space for them and your employees, whilst preventing crime in the process.

Fitted with PTZ technology and high-quality video technology, our surveillance cameras are backed with a remote monitoring service that allows threats to be quickly assessed and responded to in order to intercept active crime. 

Having spoken with customers directly, we understand the personal struggles and hardship created from retail theft in addition to the store impact. Therefore, our products aim to provide reassurance to you both inside and outside of work.

To find out how we can support you and your retail security challenges, get in touch with one of our surveillance experts today!

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