Independent retailers across the country are reporting a spike in theft and shoplifting cases as recently released official figures- showing a sharp 21 percent rise in shoplifting- compleyely substantiates their clarion call.
A Sprowston store has been dealing with a theft spree of vapes for the past week. “Yobs” of the local area not only nick vapes but also keep coming back to steal more. In the words of Caplan Stores’ staff Dee Kaplan, the people who are stealing them “literally go behind the counter to pick as they are very sure of themselves”.
Kaplan’s revelation is only a tip of the iceberg of what retailers across the country have been dealing with for the past few months.
Retailer Amrit Singh, who runs H & Jodies Nisa Local in Walsall, states that theft, which was already a problematic-issue, has spiked in recent times.
“A lot more people nowadays are trying to pick stuff stealthily. It used to happen earlier too but it has increased now. We have to be quite vigilant and keep an eye on each customer,” Singh told Asian Trader.
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North Yorkshire-based retailer Vijaya Kalikannan, who ran the first indie Jack’s store in England in Normanby and now runs three stores in Middlesbrough, asserted that theft was always there but since the start of this year, shoplifting in the store has been quite high.
The situation is said to be worse in economically-deprived areas. Retailer Mos Patel who owns and runs Family Shopper store in Ashton and a Premier store in Oldham, had revealed earlier how he is dealing with a spike in theft, more in the store which falls in the poorer area. He has dedicated a few staff just to keep an eye on such activities.
Retailers’ complaints over shoplifting are completely substantiated by recent official figures. According to police recorded crime statistics released on July 21 by Office for National Statistics (ONS), in the 12 months to March 2022, there was a whopping 21 per cent increase in shoplifting over the previous year.
According to ACS’ 2022 crime report, there have been 970,000 incidents of customer theft over the last year. Theft cost about £1,066 per store with confectionery, alcohol and meat being the most commonly stolen item in convenience stores.
Leeds City Centre had the highest number of shoplifters in England and Wales between 2021 and 2022, with 1,513 crimes recorded, says another report. Shoplifting in London has gotten so bad traders are robbed once every 15 minutes. The City of London was the second biggest shoplifting hotspot in the capital with 656 offences recorded, followed by the Strand, St James and Mayfair. St Raphael's neighbourhood in Brent was considered the most at risk from light-fingered customers.
Most of the offenders (53 percent) are repeat offenders whom store owners and staff already know, says ACS report, something which is also mentioned by both Singh and Kalikannan.
“The shoplifters are usually the repeat offenders who keep coming back to the store and some even get aggressive when we try to stop them,” Kalikannan told Asian Trader.
“They think if they want the product, they have the right to pick it anyway and we won’t be able to stop them or do anything about it.”
The Centre for Retail Research (CRR) estimated theft costs retailers nearly £2 billion a year, mainly through shoplifting and organised retail crime by gangs.
Cost of living crisis debate
Retailers’ woes are well-echoed by supermarket Iceland chief Richard Walker who expressed similar sentiments on a recent television appearance, saying that it is soaring food costs that have sparked a rise in shoplifting and aggressive incidents across Iceland stores.
Walker, during the show, also urged shoppers not to begin shoplifting or become aggressive in stores.
The cost-of-living crisis seems to have left many across the country in a state of desperation. With official figures showing shoplifting on the rise, another recent data from My Favourite Voucher Codes details that 34 percent of 2,584 UK shoppers surveyed admitted to having stolen products at self-service checkouts in the last year, out of which over two-thirds (69 percent) of those surveyed admitted that price increases was the main factor behind their shoplifting.
Association of Convenience Stores (ACS), however, strongly denies any link between the cost of living crisis and an increase in shop theft.
Despite the widely-acclaimed perception, ACS chief executive James Lowman, earlier has strongly rubbished the claim that cost of living crisis is pushing Britons to steal.
“Most of the people who are promoting this idea are sitting miles from the shop floor and armed with a mish-mash of prejudices about and detached sympathy for poorer people.
“The reality of course is that most people wouldn’t steal from another person or business under any circumstances, and that the desperation that drives theft is far more related to addiction than poverty,” Lowman wrote in a blog, pointing out that these thefts are done by repeat offenders who steal products to order or hoping to re-sell them, and doing so to fund addiction to drugs or alcohol.
“This is an awful cycle for society, retailers and most of all for those individuals and the people close to them. This really matters because arguably well-meaning comments about how we treat shop theft in a cost of living crisis could be actively harmful,” he said.
Retail trade union Usdaw also believes that attributing squeeze on household budgets as a cause for rise in shoplifting is like “turning a blind eye to theft from shops”.
“The answer to the squeeze on household budgets is not to turn a blind eye to theft from shops, which in itself contributes to rising prices as retailers try to recover losses,” Paddy Lillis, Usdaw General Secretary said.
Stating that nine in 10 retail workers suffered abuse from customers, Lillis also pointed out that theft has been a trigger for nearly a quarter of such incidents.
Whatever the causes may be, retailers here are at the receiving end and their woes do not seem to be resolving soon.
Pointing out that shoplifting remains a “significant burden, costing retailers £663 million in 2020-21”, British Retail Consortium (BRC) points out that theft affects the cost of operating stores.
“Ultimately, theft pushes up the cost of operating stores and results in higher prices for everyone. It’s not just the financial cost of theft which is important, customers and store staff can be left traumatised by such incidents, particularly where violence is involved,” Tom Ironside, Director of Business & Regulation at the British Retail Consortium, told Asian Trader.
Fighting shop theft
Big supermarkets too are now taking matters into their own hands by resorting to putting security tags on some food items. Supermarket Aldi has started implementing the hefty security tags on food items, including cheese and meat. Sainsbury's grocery store location in London has "security stickers" attached to everything from toiletries to candy while Tesco has added the stickers to packaged cheese and butter.
Body cameras have also been popping up in shops. Central England Co-op (CEC) is currently rolling out body cameras to almost 90 of its 260 stores across the UK.
Independent retailers, on the other hand, are resorting to more simpler yet proven-effective ways to stop shoplifting and plug the leak.
Both Singh and Kalikannan revealed how they have trained their staff to keep a “vigilant eye” on the suspected ones all the time.
“I am training my staff to be more vigilant. Through signs as well as CCTV in the store, we are trying to deter the criminals. We also catch and detain them until the police come,” Singh said.
Baudouin Buguet, Veesion Country manager- UK
While CCTV is present in almost every store, some retailers are also clubbing the system with Artificial Intelligence (AI) to get a step ahead in this fight. Retailer Sivakumar S Pandian, owner of Nisa Virginia Quay in London, was facing serious shoplifting issues, despite having in-store security, when he installed Veesion- an AI-empowered system that catches any swift suspected movements in the store and alerts the owner.
Veesion’s spokesperson Baudouin Buguet told Asian Trader how Veesion is able to monitor all cameras simultaneously and spot movements like “shoving products inside their jacket or trousers, concealing products inside buggies, taking too many products from the shelves (to resell the goods), opening a packet and consuming the product in-store and placing products in a bag or backpack instead of their shopping basket or trolley”.
Irony
Most retailers feel that since shoplifters, even on being caught, are not reprimanded effectively and take the same path again.
Legally, security guards are allowed to use “reasonable” force to detain shoplifters under the Criminal Law Act 1967. However, shoplifting has been effectively decriminalised for goods below £200 after the government changed the law in 2020. Anyone who is caught in the act of stealing goods of less than £200 can still be arrested and face prosecution but the act allows them to plead guilty by post. This means they are handled through a penalty notice fine of just £70 sent by letter without the accused having to turn up at magistrates court.
According to Home Office figures released earlier this year, just one in six (16.8 per cent) shoplifting offences reported to police result in a charge- nearly half the rate of 30.8 percent five years ago. It means between 200,000 and 300,000 offences each year are going unpunished with thousands more not even reported to police.
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Shoplifting is perceived as a victimless minor crime and often attracts lenient approach by authorities. New chief inspector of constabulary Andy Cooke stated earlier in May when he said that the cost of living crisis will trigger an increase in crime and officers should use their “discretion” when deciding whether to prosecute people who “steal in order to eat”. He added that he was not advocating an amnesty for people who commit crimes of poverty, nor “giving a carte blanche for people to go out shoplifting”.
Shoplifting may not be a high-priority crime for authorities but for retailers, it is a daily nuisance that they deal with, the cost of which is an added burden on them along with the constant threat of repeat offenders.
Retailer Singh feels that shoplifting may be a low-value crime but it is also a “gateway” to bigger crime.
“If people can get away with this crime, they feel they can get away with other crimes too so this is the gateway to larger crimes down the line. Since they are not caught and reprimanded in the beginning, they keep repeating and later move on to bigger crimes, proving a security threat to the area,” pointed out the Walsall-based retailer.
ACS has called on retailers to report such incidents to tackle the problem.
“We urge retailers to report incidents of crime committed against their business but it is important to remember that we cannot tackle this problem alone, we need support from the justice system and the government to ensure that appropriate and proportionate action is taken when these incidents occur,” Lowman concluded.
Following the initial response condemning the Budget as 'the most damaging for independent retailers in recent memory' from the British Independent Retailers Association (Bira), members have shared their stark reactions to the triple burden of doubled business rates, increased National Insurance, and higher minimum wage costs.
Multiple retailers have calculated specific impacts on their businesses, with costs ranging from £90,000 to £150,000 per year.
"This budget was horrendous for us as a company. Estimated costs to be around £110,000 - £120,000 per year," said Andrew Massey of Masseys DIY in Swadlincote, Derbyshire.
The immediate impact on employment is already evident. Peter Massey of R Massey & Son Ltd, employing 38 staff, said: "We decided last night that we will not replace the next two members of staff that leave. We are also considering what to do with our coffee shop that employs quite a few youngsters."
Kevin Arthur of Pewsey RadioVision in Wiltshire highlighted the broader staffing implications: "The minimum wage rising to £25.5k per year (40hr week) is scandalous. Having to pay this type of salary for your most basic of employees will mean less employees, resentment amongst 'more valuable' staff who believe they are 'worth' far more than a basic employee, and less ability to pay staff bonuses. I am now looking to reduce staff hours, reduce staff numbers, and Christmas bonuses will be curtailed and any other 'perks' reduced."
A store owner in the South West, whose business has traded for over a century, revealed: "Prior to the budget we were looking at taking on a new store and creating 12 new jobs. The colossal impact that Labour has imposed on our business means that not only will this new store not happen, but we will be reviewing our sites and having to make redundancies in order to survive."
William Coe, of Coes in Ipswich, highlighted the challenge facing customer-focused businesses: "We all want the same thing – Growth – however for growth businesses need to make a profit to enable them to invest. With the cost rises put upon them yesterday this gets harder and harder especially for the retail and leisure sectors where the ability to make savings through technology is limited."
John Jones, Managing Partner of Philip Morris Direct in Hereford, warned: "We've been saying for months that the issue for small business is the cumulative effect of so many extra costs. These add up to a level of costs that just aren't sustainable, and I fear there will be a blood bath of small business on the high street."
The impact threatens the very existence of some long-established businesses.
A West Midlands clothing retailer with over 100 years of trading history confirmed they are "closing the doors in the near future," adding that "the cumulative effect of the rate hike, NI increase and the Minimum Living Wage increases mean that already emptying towns will become wastelands."
For smaller independents, the situation is particularly acute. Tracey Clark of Albert's Hardware in Somerset revealed: "I work in excess of 70 hrs a week with little to no personal financial gain. I can't see myself surviving the next six months."
The disparity between high street retailers and online competition was highlighted by several members, with concerns raised about UK-based businesses bearing the cost burden while international competitors selling cheap imported clothing operate with minimal tax liability.
A Greater Manchester fashion retailer emphasised the disconnect between policy makers and small business reality: "They are completely detached from reality. They need someone advising that has lived and breathed a small business. There should at least have been a threshold where businesses below a certain turnover aren't hit by these things."
The impact extends beyond retail to related sectors.
A West Midlands builders' merchant warned of broader economic consequences. The owner said: "The Government has put the boot in to small business. We are paying for everything. Farmers are in real trouble now and the economy will suffer. They went round telling businesses rates were unfair and would sort it out, then just put them up. They lied to us all and now jobs will go and inflation will rise."
Many retailers expressed frustration at what they see as broken promises. A Birmingham-based jewellery store owner said: "High Streets are the cash cow for Governments and when most have disappeared, they will scratch their heads and wonder why."
The combined impact of these measures threatens not just individual businesses but entire local economies. With many retailers already reporting worse trading conditions - Bira's recent survey showed 46% reported worse trading in early 2024 compared to 2023 - these additional costs could prove the final straw for many independent businesses.
Andrew Goodacre, CEO of Bira said: "For some, the Budget has forced immediate operational decisions. Several retailers mentioned reviewing staffing levels, reconsidering expansion plans, and in some cases, accelerating closure plans. The impact on future generations is particularly concerning, with multiple family businesses questioning their long-term viability."
A Midlands hardware store owner summed up the common challenge: "This will make trading near impossible with wage increases and the business rates, and no one wants to pay any more for goods."
Brocks at Rockwell Green, a Premier-branded convenience store near Wellington, Somerset is on the market as owners Simon and Rachel Brock are now looking to retire - after running the store for nearly 25 years.
Selling a wide range of products and everyday essentials, the store is “well-established and popular” among both the local communities.
“It has been a pleasure running the store for the last 23 years and serving the local community. It has been a tough decision to sell but we felt now was the best time to retire,” Simon said.
Specialist business property adviser Christie & Co has been instructed to market the property, which also features a variety of storage spaces, offices and independently accessed three-bedroom accommodation.
Matthew McFarlane, business agent at Christie & Co who is managing the sale, commented: “This is a fabulous store and property, offering a large sales area, great storeroom and residential accommodation. The sales figures are very strong which represents an excellent opportunity for corporate buyers or established multi operators.”
Wrexham Lager Beer Co Ltd, the oldest lager brewery still existing in Britain that has been brewing in Wales since 1882, has announced Rob McElhenney and Ryan Reynolds as new co-owners of the company alongside the Roberts family.
The acquisition was made by Red Dragon Ventures, a joint venture formed by The R.R. McReynolds Company, majority owner of Wrexham AFC, and the Allyn family of Skaneateles, New York. Red Dragon Ventures was created to drive growth in the Wrexham community and Wrexham AFC.
This transaction represents another landmark deal for the Welsh town and will considerably scale up Wrexham Lager’s infrastructure and international production, distribution, and marketing efforts.
“As co-chairmen of Wrexham AFC we have learned a lot,” said Rob McElhenney and Ryan Reynolds. “The connection between club and community, the intricacies of the offsides rule and the occasional need for beer – especially after finance meetings. Wrexham Lager has a 140-year-old recipe and a storied history and we’re excited to help write its next chapter.”
The Roberts family, who have owned and operated the business since 2011, will maintain an active role within the business, continuing to oversee quality control across all markets, local brewery operations, and community engagement projects.
Recently appointed chief executive James Wright will continue to lead the business after already overseeing rapid UK growth, as well as international expansion into Australia, Japan, and Scandinavia. Distribution in the US and Canada is set to go live in the coming months.
“This is a brand with great heritage – the oldest lager brewery in Great Britain, once enjoyed across the world,” Wright said. “So, to have Rob and Ryan onboard as we embark on international expansion is huge for us. They have been doing wonders for the town of Wrexham and strongly share our passion for once again seeing Wrexham Lager enjoyed in all the far-flung corners of the globe.”
Wrexham Lager Beer Co currently produces the 4% ABV Wrexham Lager, 5% ABV Wrexham Lager Export, and recently introduced 4.6% ABV Pilsener. The 4% Wrexham Lager is produced using an original recipe from 140 years ago that was once available in the world-famous Harrods luxury department store in London, as well as chosen as the only lager to be served on the White Star Line’s Titanic.
Ten global beverage companies have joined forces under a new industry-wide consortium, called REfresh Alliance, which is designed to help accelerate renewable energy adoption across the industry’s supply chain.
The new initiative invites additional companies from across the beverage industry to pool and scale their resources to remove barriers to renewable energy adoption in the supply chain, provide education on best market practices and support the industry’s transition to Net Zero.
Companies currently part of the REfresh Alliance include: Bacardi, Carlsberg Group, Constellation Brands, Diageo, Heineken, Molson Coors Beverage Company, Pernod Ricard, The Coca-Cola Company and Whyte & Mackay.
The programme is managed by leading energy solution provider, Enel X. Through its Advisory Services division, Enel X connects the participants with renewable energy providers and supports renewable energy transactions, aiming to accelerate renewable energy adoption.
The programe also features a dedicated educational platform to help program participants prepare for renewable energy adoption.
Scope 3 emissions, which are not directly produced by a company but from its supply chain, often account for approximately 90 per cent of a beverage company’s carbon footprint. As suppliers continue to face a number of barriers to decarbonisation, REfresh has already engaged with more than 300 suppliers to discuss their involvement in the programme as it aims to support their adoption of renewable energy solutions.
“We have long recognised the need for industry collaboration to deliver the most impact and to accelerate the transition across our supply chains,” Ralf Peters, chief procurement officer of Coca-Cola Europacific Partners (CCEP), and chairman, Coca-Cola Cross Enterprise Procurement Group (CEPG), said.
“I know from my experience across the Coca-Cola system that supporting our supply partners is a key part of our sustainability action – and that encouraging them to transition to renewables is one of the most impactful things we can do to help decarbonise their businesses, and to do the same in ours.”
Hervé Le Faou, chief procurement officer of Heineken, said: “Scope 3 emissions are one of the biggest challenges that the industry faces in delivering on our Net Zero ambitions. We must work together to identify areas of our supply chains where we can pool our resources to accelerate this transition for our suppliers. We look forward to working with other beverage companies to achieve this and accelerate the decarbonization of our industry.”
Jane Liang, chief procurement officer of Diageo, said: “The climate crisis is the most pressing issue of our time and the transition to Net Zero is becoming increasingly important. However, there is only so much we can do as individual businesses. The REfresh Alliance will drive collective action within the industry to accelerate the adoption of renewable energy. We are calling on all companies and suppliers within the industry to join us and support the industry in its transition to Net Zero.”
REfresh intends to initially launch in the mature renewable energy markets of Europe and North America, where it will be able to use existing networks to accelerate impact in support of the industry’s decarbonization efforts. As it continues to grow, the consortium will look to expand to other markets and welcome businesses from across the beverage industry to join it in supporting suppliers in their decarbonization journeys.
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Single-use disposable vapes are displayed for sale on October 27, 2024 in London, England
Vape industry bodies have raised concerns over chancellor Rachel Reeves’ budget announcement introducing a flat-rate excise duty on vaping products, saying it could hurt public health and increase financial pressures on consumers.
The new excise tax, set to begin on October 1, 2026, will add £2.20 per 10ml of vaping liquid, with additional VAT. This rate replaces the previous government’s proposed tiered tax structure, which many in the industry had criticised.
The Independent British Vape Trade Association (IBVTA) welcomed the shift from a tiered structure but voiced strong concerns about the overall impact on vapers, particularly those on lower incomes.
“The government has already proposed regulation that will ban single use products, which despite helping many adult smokers access vaping, have via irresponsible retailers been disproportionately accessible to children,” said IBVTA chair Marcus Saxton.
“It would seem a little questionable then to increase the cost of vaping, especially given there are still around six million adult smokers for who you’re trying to give every opportunity to make the transition to less harmful products.”
Saxton warned that higher costs could hinder the progress made by public services utilising vapes within their smoking cessation services, adding, “The IBVTA do not believe that any excise tax should be applied to products supplied via these services.”
The UK Vaping Industry Association (UKVIA) voiced even sharper criticism, highlighting the potential for the new excise tax to become an economic burden on adult vapers.
John Dunne, UKVIA’s director general, noted that the additional £2.64 per 10ml of e-liquid (inclusive of VAT) could result in a 267 per cent price hike for some e-liquids, a change that he described as “a kick in the teeth for former adult smokers who have switched to vaping to quit their habits.”
Dunne cautioned that the new excise rate would be “the highest in Europe,” and warned that it could deter adult smokers from considering vapes as a smoking cessation tool.
“Some 3 million adults are former smokers thanks to vaping, which is strongly evidenced as the most effective way to quit conventional cigarettes, saving the NHS millions of pounds in treating patients with smoking related conditions. This announcement today deters adult smokers from considering vapes as a method to give up their habits, and hits the lowest paid,” said Dunne.
He criticised the government’s approach, calling it a “revenue grab from former smokers” and noted the inconsistency with reduced VAT rates applied to other nicotine replacement therapies.
“It would also make more sense for vapes to be taxed at a lower VAT rate, which is the case for other nicotine replacement therapies, which have proven to be considerably less successful than vapes in helping smokers quit,” he said.
The budget also announced a consultation on new compliance measures, including vaping duty stamps and supply chain controls to combat illicit production of nicotine products. This consultation, open until December 11, 2024, aims to limit illegal manufacturing while ensuring the new duty’s effective enforcement.