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Theft is a serious problem for retailers and the financial losses are material. Security executives and prevention and security executives have been raising concerns about the evolving nature of retail theft and violence, highlighting the need for advanced asset protection strategies. There was a time when the biggest source of retail shrink was internal — that’s not the case anymore,” he wrote.
National Retail Federation retail theft numbers
According to NRF’s “The Impact of Retail Theft & Violence 2024” report, which was conducted online among senior loss prevention and security executives from large retailers, the retail brands which accounted for the survey represent a significant portion of total retail sales—specifically, 1.52 trillion in annual sales. These retailers surveyed experienced a 93% increase in the average number of shoplifting incidents per year in 2023 vs. 2019, and a 90% increase in dollar losses over that same time period. The surveyed retailers include mass merchandise, luxury retail, and retail sectors including specialty, home improvement, and grocery, and these brands represent a broad cross-section of the retail industry.
In 2023, surveyed retailers reported an average of 177 shoplifting incidents per day (though in some sectors the number exceeded 1,000 daily incidents). Improvement mass merchandise grocery stores have implemented new asset protection tools and strategies to keep retail environments safe for store associates and customers.
Violence and aggression in shoplifting have risen:
73% of retailers said shoplifters were more aggressive than the prior year
91% said shoplifters show more violence compared to 2019
Almost 47% of retailers reported seeing more incidents involving groups of more than three individuals stealing multiple items (possible indicator of organized retail crime). Multi person theft incidents and shoplifting connected to organized retail crime are a complex and sophisticated challenge for retailers, requiring collaboration with solutions providers and local law enforcement. After such incidents, the importance of employee training and support employee training related to workplace violence is emphasized, as well as the need for protecting store associates.
Retailers say organized retail crime (ORC) is increasingly part of the problem:
ORC groups coordinate theft across stores and resale channels. The ongoing battle to effectively combat organized retail crime highlights the role of federal legislation such as the Organized Retail Crime Act, and the consensus among respondents is that federal legislation is needed. NRF notes that external theft (which includes ORC) accounts for about 36% of annual retail “shrinkage” losses.
The research community, including the Loss Prevention Research Council and sponsored studies such as those sponsored by Sensormatic Solutions, plays a key role in industry collaboration and mitigating crime. The dollar loss from retail theft is significant and occurred over the same time period as the reported increase in incidents.
Today’s retail crime landscape is a major concern for the retail sector, and retailers continue to adapt their retail operations to address the rising retail theft landscape.
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