New research projects that retail theft will escalate, reaching a value of £ 7.9 billion this year. The study jointly conducted by security technology group Thruvision and Retail Economics highlights an escalating trend of targeting the retail industry, putting significant pressure on retailers from both customer-related theft and internal issues within distribution centres.
The research states that shoppers contribute to 60 per cent of the value (£ 4.7 billion), while employees within distribution centres, distribution networks, and stores account for the remaining 40 per cent (£ 3.2 billion).
Notably, the study identifies distribution centres as a current hotspot for employee-related crimes, which are often underreported by retailers. According to the findings, 42.6 per cent of total employee theft occurs in distribution centres. Two-thirds of the surveyed retailers express the belief that over the past decade, the opportunities for criminal activities within distribution centres have accelerated. Of those witnessing an uptick in employee theft over the past year, 70 per cent attribute it to an increase in organized crime in distribution centres.
In a survey of 100 managers and directors responsible for loss prevention at major UK retailers, a net balance of 20.9 per cent reported an increase in employee theft over the past year. Financial strain resulting from the cost-of-living crisis is identified as a driving factor for two-thirds of respondents who believe it has led to an increase in theft by employees at distribution centres over the past year.
Richard Lim, CEO of Retail Economics, said, “Retail crime adds to a backdrop of rising operating costs that have squeezed profitability in recent years. A startling 40 per cent of theft stems from a minority of retail employees. The nature of theft becoming more organised demands a widespread and holistic approach incorporating deterrence, detection, and industry-wide collaboration.
“Proactive measures not only curb the impact of theft but also cultivate a safer environment, attracting talent and fortifying the industry. Striking a balance between fairness among honest employees and deterrence is now pivotal as structural shifts leave retailers vulnerable to disconnected workforce and supply chain complexity.”
