The first dedicated retail crime survey for Australian and New Zealand retailers has revealed a dramatic increase in customer theft, which now accounts for over 50 per cent of the revenue lost from stores from crime.
The Australia and New Zealand Retail Crime Survey from retailers representing over 9,000 stores with an annual turnover of approximately AUD$95 billion in the last financial year. It was conducted by Aptus Research in partnership with the Profit Protection Future Forum ANZ and sponsored by retail technology company Checkpoint Systems. The sample represents almost a quarter of the retail industry in Australia and New Zealand.
They estimate that crime-related loss is 0.92 per cent of revenue, revealing a $3.37 billion direct cost of crime to the industry in the 2017-2018 financial year.
The majority of these losses have been attributed to customer theft (57 per cent). This figure has jumped 16 per cent in less than two years.
The study also found:
Additionally, only 20 per cent of retailers said they were happy with law enforcement response to this rise in crime. Meanwhile, 67 per cent of retailers reported that it was difficult to combat shoplifters with their current resources because of the diverse and sophisticated ways that criminals are now targeting retailers.
‘It’s easy to get away with petty theft’
Commenting on the study, lead researcher and Reader in Criminology at City, University of London Dr Emmeline Taylor, said: “Thieves now tell me that it’s easy to get away with petty theft. Reward greatly outweighs the risk. There are multiple factors that could be contributing to this, including the introduction of self-service checkout, and changes in criminal behaviour,”
“Thieves are becoming more brazen. We have seen this in the recent “steaming” technique used by gangs to overpower mobile phone shops in broad daylight, often intimidating staff and pushing customers out of the way to reach the stock,” Dr Taylor added.
“Many people think that retail crime is a victimless crime – that the large retailers build expected losses into their profit margin - but it couldn’t be further from the truth. We calculate that AUD $3.37 billion is enough to employ 85,000 supermarket checkout staff for a year.
Vice President of Checkpoint Australia, Mark Gentle said: “From this study, it’s evident that thieves have upped their game and retailers need to adapt to stay ahead. Loss prevention technologies are still the best deterrents for opportunistic shoplifters and when combined with good customer service, will often significantly reduce theft in stores.”
“It has also become clear that retailers have lost confidence in law enforcement’s response to retail crime and this has allowed shoplifters to become bolder. These findings should encourage retailers to invest in further theft prevention measures. There has been a major focus on cybercrime and cybersecurity in retail. Yet this push towards protecting digital assets has apparently left a gaping hole for shoplifters to take advantage of gaps in retailer’s security in stores.”
Checkpoint Systems, a division of CCL Industries, addresses two critical issues for its customers: Improving Profitability and Improving Consumer experience. With consumer demands accelerating at an extraordinary rate driven by technology, Checkpoint recognizes the challenges faced by its customers in the rapidly evolving retail market. We deliver intelligent solutions – bringing clarity and efficiency into the retail environment anytime, anywhere. Through a unique offering of software, hardware, labels, tags and connected cloud based solutions, Checkpoint optimizes operational efficiencies through analysis of real time data captured throughout the Supply Chain and in store then translating this to clear concise actions and tasks.
We provide end-to-end solutions enabling retailers to achieve accurate real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft, thus improving merchandise availability and the shopper’s experience. Checkpoint’s solutions are built upon 48 years of radio frequency technology expertise, innovative high-theft and loss-prevention solutions, market-leading RFID hardware, RFID software, and comprehensive labeling capabilities, to brand, secure and track merchandise from source to shelf. Checkpoint’s customers benefit from increased sales and profits by implementing merchandise availability solutions, to ensure the right merchandise is available at the right place and time when consumers are ready to buy. Checkpoint operates in every major geographic market and employs 4,500 people worldwide.