Retail crime is a growing problem not just a businesses but also for consumers as retailers, who are paying a heavy price related to crime, are expected to pass on the cost in the form of higher prices, shows a recent report.
According a new report by national law firm TLT, based on the survey of UK's top 100 retailers, the financial impact of retail crime transcends the losses from theft, damage, and personal injury in the form of increased costs from higher wages, security investments, and compliance with regulatory measures.
In fact, 80 per cent of retailers report increased costs related to safety and security measures.
The economic repercussions of retail crime are widespread and varied, affecting everything from daily operations to long-term business strategies on top of increased employment costs.
89 per cent of retailers are reporting material losses in inventory, which has a direct financial impact. In addition, 34 per cent have invested in additional security infrastructure, illustrating how retail crime has forced companies to prioritise safety over increased profits.
The report, based on a survey of the UK’s top 100 retailers, highlights the scale of the problem and how retailers are increasingly turning to technology such as AI driven analytics and biometric security systems as critical lines of defence.
Retailers are exploring a range of financial strategies to mitigate rising costs, but the most common (44 per cent) is passing them onto customers through higher prices. This approach means that the rise in retail crime is as much of an issue for consumers as it is for businesses. 42 per cent of retailers plan to increase product prices specifically to offset these crime-related expenses.
Meanwhile, 29 per cent are absorbing these costs internally, accepting the financial strain without adjustments to pricing or operations because they fear losing customers to lower-priced competitors. Additionally, to streamline and reduce costs, 24 per cent of retailers are implementing cost-saving measures in other areas.
The report shows that all (100 per cent) retailers reported experiencing some form of crime in the past year. 88 per cent reported incidents of shoplifting, 86 per cent reported cybercrime, 81 per cent reported physical abuse, and 86 per cent reported verbal abuse.
Verbal abuse was also experienced by 100 per cent of grocery retailers surveyed, added the report.
Retailers are implementing various strategies to fight the growing challenge of retail crime, with tagging products (to deter theft and track inventory) being the most common action (adopted by 61 per cent of businesses).
Restricting product displays or access follows closely, with 57 per cent of retailers taking this step to limit shoplifting. Modified store layouts, chosen by 44 per cent, aim to improve visibility and control over store areas, while 45 per cent have enhanced in-store security, bringing in additional safeguards to discourage criminal activity.
Increased staff presence in critical areas (34 per cent) provides a human deterrent, and some retailers (23 per cent) have even altered opening hours to close earlier and reduce the potential for incidents at night. 52 per cent of businesses are investing in enhanced property security features, such as reinforced doors and secure entry points.
Traditional threats like theft are now compounded by the rise of cybercrime, making it essential for retailers to prioritise collaboration, workforce training, and investment in both physical and digital security measures.
"Our findings show that retail crime is a growing problem but it is not just a business issue. The solution lies in a unified approach that combines innovation, workforce resilience, and meaningful government support to protect employees, businesses, and communities”, says Perran Jervis, Head of Retail & Consumer Goods at TLT.
