Shoplifting is increasing and costing retailers billions

Goods worth 2.8 billion euros
Retail sector suffers from increasing thefts

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Prices are rising and so is the number of shoplifting incidents. Thieves are benefiting from the fact that there is also a shortage of skilled workers in the retail sector. The damage to retailers is increasing so much that one expert is talking about a turning point.

Retail in Germany is gearing up to combat shoplifting. Expanding security measures is one of the priority projects for many retailers this year, says Frank Horst, an expert from the EHI retail research institute. The reason for this are figures that are worrying the industry: according to an EHI study, thieves stole goods worth 2.8 billion euros last year. The damage caused to retailers is therefore 15 percent higher than in the previous year.

“We have reached a turning point where the increase in shoplifting is taking on a special dimension and requires special attention,” says study author Horst. There is an increase in the food and clothing trade as well as in drugstores. Horst sees several reasons for this. “Due to the price increases, some people have got into financial difficulties and have stolen more often.” Another problem is the shortage of skilled workers in retail. “Many shops now have fewer staff. This makes it easier for thieves. Staff presence indirectly prevents theft,” says Horst.

The numbers had already risen in 2022. Experts saw this as a return to the “normality” of the pre-Corona era. The product groups that are particularly popular with thieves in supermarkets and discount stores include spirits, tobacco products, cosmetic products, razor blades, energy drinks, baby food and coffee. Meat, sausage and cheese are also mentioned more frequently. Most of the offenders are opportunistic, but at least a quarter are professional offenders who act in gangs. A survey by the EHI shows that many retailers expect a further increase in thefts.

560 million euros in damage to the state

Overall, inventory discrepancies rose by five percent to 4.8 billion euros in 2023. The figure includes losses due to theft by customers, employees and staff from suppliers and service companies, as well as organizational deficiencies such as incorrect pricing. According to Horst, this means that, mathematically speaking, one in every 200 shopping carts passes the checkout unpaid. This also causes damage to the German state, which is missing out on sales tax revenue of around 560 million euros.

“We have stores where there is an increase in inventory discrepancies, but also many that are stable,” said Rewe boss Lionel Souque. The supermarket chain says it has taken various measures. “Ten years ago, we opened all entrances at Rewe and removed locks so that customers could go straight in. We have removed this in individual stores,” said Souque. At some locations, there are more security personnel and detectives.

Other companies are also being vigilant. “We are also seeing a changed situation at Ikea Germany,” said a spokeswoman for the furniture retailer. They are working closely with the investigative authorities to prevent and solve thefts. Aldi Nord, Edeka and Lidl did not want to provide any further information on the subject when asked.

Camera surveillance is increasing

Stefan Genth, general manager of the trade association, is calling for tougher action. “Trade companies must be able to rely on the state and its authorities to ensure that property is respected and protected reliably and efficiently.” An effective deterrent is important. But too often, penalties are not imposed and proceedings are dropped. “In particular, gang-organized shoplifting must be combated more thoroughly,” says Genth.

Many companies have already expanded their camera surveillance and trained their staff, as the EHI study shows. Spending on preventive measures in retail in Germany rose to 1.55 billion euros in 2023, and the total costs for inventory discrepancies and their prevention even amount to more than 6.3 billion euros. The internal personnel costs for all activities that arise due to the risk of theft – such as installing merchandise security, training and theft reports – are not yet included here.

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