In the UK, the BRC Crime Survey revealed that the incidence of violence and abuse towards retail staff as a result of theft had almost doubled since pre-pandemic. During 2021–2022, an average of 867 incidents were reported daily. The survey also showed that despite £700 million being paid out in crime prevention strategies across retailers, a total of £953 million worth of products were stolen during this period.
Many have blamed the organized retail theft (ORT) problem on consumers struggling to provide for themselves during high inflation. In contrast, others have attributed the issue to thieves looking to resell items at higher prices online. Regardless of the reasoning, action is needed to lower crime rates. Uniting to tackle the problem, 88 retailers in the UK—including Superdrug, Boots, Sephora, and SpaceNK—have signed a letter to British Home Secretary Suella Braverman demanding action be taken against the rising statistics of retail theft.
The letter outlines a proposal to implement laws that would make assaulting or abusing retail workers a standalone offense, which would lead to harsher sentencing for those convicted of such crimes. The retailers are also calling for police forces to record all incidents of retail crime, allowing for better allocation of resources to the issue.
The call to action comes after an undisclosed major retailer’s data revealed that the police failed to respond to 73% of serious retail crimes that were reported in 2022, because 44% of retailers in the BRC’s annual crime survey rated police response as “poor” or “very poor.”
“It is vital that action is taken before the scourge of retail crime gets any worse,” says Helen Dickinson, Chief Executive at the British Retail Consortium. “We are seeing organized gangs threatening staff with weapons and emptying stores. We are seeing violence against colleagues who are doing their job and asking for age verification. We are seeing a torrent of abuse aimed at hardworking shop staff. It’s simply unacceptable—no one should have to go to work fearing for their safety.”
The issue of ORT is not only common in Britain. In the US, 2022’s retail shrink accounted for $94.5 billion in losses, up from $90.8 billion in 2020. Retailers across the country reported a 73.2% boost in shoplifting, alongside a 71.4% increase in employee theft and an average 26.5% rise in ORT.
“The factors contributing to retail shrink have multiplied in recent years, and ORC is a burgeoning threat within the retail industry," stated Executive Director of Research at National Retail Federation (NRF) Mark Mathews. The NRF also confirmed that health and beauty products were among the top categories targeted.
In New York City specifically, nearly a third of all shoplifting arrests were committed by 327 people who were arrested and rearrested more than 6,000 times, according to The New York Times. These crime rates impact businesses and their sales, with Target Chief Executive Officer Brian Cornell reporting a $600 million loss in 2022 profits.
"Target is collaborating with legislators, law enforcement, and retail industry partners to advocate for public policy solutions to combat organized retail crime, and the company is working to keep its stores open in markets where the problems are happening,” Cornell added.
Ulta Beauty’s Chief Financial Officer Scott M. Settersten revealed the problem is also a prominent issue for Ulta’s sales progress, stating, “ORC theft put a pretty meaningful drag on our financial performance and will remain a challenge the rest of the year.”
Several businesses are taking action to best theft-proof their stores. Despite a spokesperson for CVS suggesting that “locking products up is a measure of last resort,” endless stores across the country have upped their inventory kept under lock and key. However, in the efforts to lower profit loss due to theft, retailers are also risking their profits by restricting access to products, as it is reported that locking up items often puts the consumer off and contributes towards a 15 to 25% decrease in sales.
Overcoming ORT currently feels like a large-scale issue to fight, but the proposed UK bill and companies in the US like Target pushing for new law enforcement seem to be a step in a positive direction. The more retailers that get on board and speak on the issue, the more likely there will be change. After all, beauty retail should not be subjected to a case of "buy one, get one stolen."
“It’s time the government put their words into action. We need to see a standalone offense for assaulting or abusing a retail worker and theft. We need the government to stand with the millions of retail workers who kept us safe during the pandemic—and support them, as those workers supported us,” concludes Dickinson.
