Retailers have reported a significant increase in shoplifting incidents and associated financial losses since before the COVID-19 pandemic. A recent study by the National Retail Federation (NRF) shows a 93% rise in average annual shoplifting cases in 2023 compared to 2019, along with a 90% increase in dollar loss over the same period.
The study, titled "The Impact of Retail Theft & Violence 2024," was released on December 17 and conducted in collaboration with the Loss Prevention Research Council, with sponsorship from Sensormatic Solutions. It highlights how theft and violence have changed since before COVID-19 and examines current retail crime prevention strategies.
"Retailers continue to navigate a rising retail theft landscape that has evolved significantly over time," said David Johnston, NRF Vice President for Asset Protection and Retail Operations. He emphasized the need for a collaborative approach involving all stakeholders to protect store associates and customers while reducing violence and retail crime.
The survey found that retailers experienced an average of 177 shoplifting incidents per day in 2023, although this number can exceed 1,000 depending on the sector. Violence remains a major concern; about three-quarters of those surveyed noted increased aggression among shoplifters compared to last year, with even more expressing concerns when compared to pre-pandemic levels.
To address these issues, many retailers are investing more resources into employee training related to workplace violence. "Retailers and solution providers must work together to build and drive technology that goes beyond thwarting theft in the moment," stated Tony D’Onofrio, President of Sensormatic Solutions.
Multi-person thefts are also increasing, with coordinated efforts by organized retail crime (ORC) groups becoming more prevalent. A majority of respondents expressed heightened concern over ORC-related shoplifting compared to last year. Among retailers capable of tracking such incidents specifically, there was an average increase of 57% in ORC cases from 2022 to 2023.
"Retail crime is a complex and sophisticated challenge," said Dr. Read Hayes from the University of Florida Research Scientist and Executive Director at the Loss Prevention Research Council. He noted ongoing collaboration between the retail industry, research community, and solutions providers aimed at developing improved asset protection tools against ORC.
Most respondents agree that federal legislation is necessary to effectively combat organized retail crime. The NRF continues advocating for Congress to pass the Combating Organized Retail Crime Act for better coordination among law enforcement agencies at different levels.
The survey involved senior loss prevention executives across various sectors within mid-size to large retailers representing $1.52 trillion in annual sales during 2023 or about 30% of total retail sales. These sectors include specialty luxury goods, home improvement items, mass merchandise offerings as well as groceries pharmacies among others.
