The cost of retail crime soared by a third last year and, most worryingly for retailers, only a fraction was related to last summer’s riots.
Figures to be released by the British Retail Consortium next week will show the financial toll on retailers has jumped to a staggering £1.4bn in the past year. But despite the destruction of the August riots, for retail crime they were just the tip of the iceberg in terms of year-round cost to businesses.
The clear majority of crime, according to the BRC survey, was shoplifting, with thieves behind 85% of incidents and 60% of costs. Amid concern that organised criminal gangs are behind the increase, retail leaders are calling on the government and the courts to get tough with policing and sentencing.
“Retail crime doesn’t just affect retailers - it’s a huge cost to society,” said Catherine Bowen, the BRC’s head of crime. “The riots meant retail crime was escalated on to the national radar, but it needs to stay there.”
Despite the massive increase in the cost of retail crime, the true picture is likely to be much higher. The BRC said maps of shop thefts found on local crime and policing websites for England and Wales were likely to be a gross underestimate due to under-reporting of offences.
Shop crime experts insist the crippling impact being felt by businesses, although highlighted by the riots, is an everyday menace.
“We understand from the police that businesses lose the equivalent of the riots every five weeks. The huge cost to businesses does not go away just because it’s not on TV,” said Simon Gordon, who set up online CCTV network Facewatch last year in a bid to help retailers crack down on shoplifters.
“The biggest concern is that shoplifting continues to be seen as a victimless crime,” said James Lowman, chief executive of the Association of Convenience Stores. “It has this image as something that’s committed by old ladies who’ve forgotten to pay. The reality is very different. It’s very organised. The cost to the victims is very real.”
The BRC survey is calling for greater co-operation between retailers and police forces, expressing fears that businesses will not have a voice in the new system of police and crime commissioners due to replace local police authorities outside London in November. It also wants to ensure businesses in London, where Boris Johnson will be overseeing local policing, have a prominent voice in dealing with retail crime.
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