Impact of Rising Shoplifting on Small Retailers
Helena Hudson, owner of Real Eating Company, experienced a significant loss of £425 in sales when one dishonest customer cleared out all the prepared food from the refrigerator at the entrance of her shop in Chichester, West Sussex.
This incident is part of a worrying trend of escalating shoplifting that is affecting small retailers across the nation.
To combat theft, Hudson, who manages eight cafés in southern England, has relocated the fridge and other tempting items typically found near the checkout to less accessible areas. She expressed concern that these measures reduce the impulse to buy, stating, “We don’t want to limit sales right now, but we must take actions to deter shoplifters.”
According to an annual crime survey by the British Retail Consortium (BRC), customer theft surged over 20% in the past year, reaching a staggering £2.2 billion, which adds to a total crime cost in the retail sector approaching £4.2 billion, including preventive measures. For the first time, violent incidents and abuse reported by retailers exceeded 2,000 daily.
BRC: Retail Crime Rates ‘Spiraling Out of Control’
Hudson noted that she is not planning to pass these theft-related costs onto her customers, but is exploring alternative strategies to offset the financial burden. “Currently, we are tightening our overheads significantly, which impacts how many hours our staff can work,” she remarked.
Similarly, Paul Castle, managing director of Cotswold Fayre, a specialty food hall and wholesaler in Reading, reported that the company incurred substantial costs for installing CCTV at both locations. He emphasized, “The independent sector tends to suffer more than larger chains because we lack extensive security measures and personnel.”
To mitigate theft, Cotswold Fayre has had to increase its staff presence on the shop floor, which, although effective in reducing stock loss, has resulted in higher operational costs. Castle explained, “You either absorb the loss from stolen products or incur additional labor costs to prevent theft. We have no external support; it’s just us against the thieves.”
The BRC survey indicated that only a third of larger retailers rated the police response to crimes at their sites as fair, good, or excellent, while 61% described it as poor or very poor.
Castle pointed out that the losses extend beyond the direct value of stolen items. He explained, “If someone steals the last three bottles of vodka I have, it not only costs me those bottles but also the sales I would have made until the new shipment arrives.”
Martin Gaunt, proprietor of Happy Piranha, a games and gift shop in Cornwall, made headlines for conducting over 50 citizen’s arrests for shoplifting across his three stores and café last December.
He stated, “We maintain a strict zero-tolerance policy and usually intervene when we observe theft — using citizen’s arrest if necessary. Recently, out of the seven individuals we confronted, five were armed in some way.” Gaunt has expressed concerns to media outlets regarding the targeting of local businesses by criminals, particularly those involved in substance abuse. He works alongside his three sons but discourages his staff from making citizen’s arrests.
All three retailers expressed frustration with the perceived lack of police assistance in addressing shoplifting. Gaunt observed, “Shoplifters feel more emboldened due to the lack of effective action taken against theft in recent years.”
Hudson added that the ramifications of shoplifting on small businesses deserve greater attention. “Discussions often focus on the effects on large corporations, which is important as they provide numerous jobs. However, we small businesses represent a significant portion of the market. Lacking a united voice or public relations support, we often get overlooked.”
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