The latest findings from the British Retail Consortium (BRC) cast a stark light on the escalating crisis of retail crime in the UK, painting a sobering picture of its impact on both businesses and communities. According to the BRC’s recent press release, incidents of retail crime have surged to alarming levels, with a myriad of offences ranging from theft and fraud to violence and organised crime. Shocking figures Violence and abuse against retail workers soared last year, as incidents r
cidents rose to 1,300 per day in 2022/23 from almost 870 per day the year before.
This rise comes despite retailers investing heavily in crime prevention, spending £1.2 billion (US$1.5 billion) on measures such as CCTV, increased security personnel, and body-worn cameras, up from £722 million (US$915 million) the previous year.
The cost of theft to retailers went up to £1.8 billion ($2.2 billion), from £953 million ($1.2 billion) the previous year, meaning the total cost of crime to retailers stood at £3.3 billion ($4.18 billion) – double the previous year.
The BRC’s annual crime survey highlights the scale of violence and abuse faced by people working in retail.
Incidents, which include racial abuse, sexual harassment, physical assault, and threats with weapons, are now on a par with the levels seen during the pandemic, when staff bore the brunt of some people’s frustration with Covid safety measures.
Helen Dickinson OBE, chief executive of the BRC has been quoted as saying that the government can no longer ignore the plight of ordinary retail workers who are subjected to violence in their line of work.
Dickinson said that while the violence can be over in a moment, the victims carry these experiences with them for a lifetime. As the impact affects their colleagues, friends and family, she believes that this is a crisis that demands immediate action.
An overview
According to a BRC spokesperson, several factors have contributed to this rise.
“The lack of action by the police to tackle both violence and theft has meant that many criminals feel they have a free pass,” the spokesperson told Inside Retail.
The BRC has been calling on the government to introduce a standalone offence for assaulting or abusing a retail worker. The consortium believes this would be a step in the right direction.
“It would mean tougher sentences – making many criminals think twice before assaulting or abusing a retailer. It would also mean the police would have to log all incidents of retail crime and abuse. This would allow them to better track the issue and allocate appropriate resources,” the spokesperson said.
It has been stated that retail violence and abuse have a long-term impact on individuals and the broader community.
“These incidents take a huge toll on retail workers, their families, and their friends. While incidents might be over in a few minutes, victims can carry these experiences with them for a lifetime – and can have a severe impact on victims mental health,” the spokesperson added.
The bigger picture
According to the BRC survey, the retail industry makes up 5 per cent of the UK’s GDP and is the largest private sector employer as it provides 3 million direct jobs and 2.7 million more in the supply chain arena.
Over 200 major retailers are members of the BRC and thousands of smaller independent retailers operate across all retail channels and categories. Together, these businesses deliver over £350 billion ($443 billion) of retail sales per year.
Apart from retail crime on the ground level, 57 per cent of retailers surveyed by the BRC also reported an increase in cyber attacks and breaches. Online fraud has increased over threefold to £99.7 million ($126 million) from £30 million ($38 million).
The main threat going forward is phishing, ransomware and denial of service attacks. Retailers have also noticed malware, data theft, credential stuffing, web apps, spoofing and social engineering.
Expenditure on cybercrime prevention was £177 million ($224 million), up by 17 per cent from the previous year, almost the highest ever and representing 15 per cent of all
expenditure on crime prevention.
A global problem
If one looks at rising retail theft these days, it’s fast becoming a global problem. Companies like Target and Walmart have been closing stores due to skyrocketing shoplifting levels in the US.
Estimates surrounding retail crime in the US have been fluctuating wildly of late, as the National Retail Federation recently retracted its claim that organised retail crime accounted for nearly half of inventory losses in 2021.
Institutions like the Retail Industry Leaders Association (RILA) have estimated that organised crime costs US retailers nearly $70 billion a year, based on data from five Fortune 500 companies that RILA described as “some of the largest retailers in the country”.
Meanwhile, data from the NRF’s annual retail security survey indicates that the percentage of shrink attributable to external theft, including organised retail crime, has largely remained around 36 per cent since 2015.