Facing Up to Retail Crime: Finding the Right Solutions

Photo: SecretLondon on Wikimedia

‘Tough going’ would be one way of describing commercial realities on the UK’s High Streets these past few years.

The economic downturn has been so severe, in fact, that even long-established names have felt the pinch – in some cases in the biggest way imaginable.

Take Woolworths Group plc, for example. This High Street institution was forced into administration in January 2009. Thankfully, the famous brand now survives online courtesy of Shop Direct Group.

Fiscally difficult times inevitably beget a rise in criminality. That has certainly been the case in 2012-2013. One glance through the pages of the latest Retail Crime Survey corroborates such an assertion.

Published in January by the British Retail Consortium (BRC), this comprehensive document is underpinned by comments from a broad range of retailers. Large multiples and smaller concerns from 40-plus retail groups have aired their collective views.

In fact, these respondents represent close on 60% of the UK’s retail sector by turnover so we can be sure the results paint nothing if not a comprehensive picture.

Decade-high theft levels

Unfortunately, the rendered statistical images for what is a massively important sector of our economy are somewhat less than pleasant.

In 2012-2013, retailers were stricken by the highest levels of theft they’ve had to endure in nigh on a decade. Apparently, thefts perpetrated by customers soared, with the average value of goods stolen rising by 62% to £177 per incident.

A key factor driving this trend is thought to be the increased impact of organised criminal gangs whose constituents are systematically targeting higher value items including electrical goods and designer clothing, etc.

The BRC states that there were over 630,000 incidents of customer theft reported in 2012-2013, with thefts per 100 stores increasing by 5% on the 2011-2012 Retail Crime Survey.

Two million incidents of shoplifting occurred in the UK retail sector as a whole. Those incidents took in about £200 million of goods (with the average value of goods stolen rising by 28% to £109).

For its part, theft from stores escalated the direct cost of retail crime to retailers themselves (which, in 2012-2013, stands at a massive £511 million). To put this into perspective, the reported figure is 166% higher than it was in 2007-2008. It’s estimated that there were no less than 2.7 million offences against retailers across the survey period.

An astonishing trend, then, but this might only represent the tip of the iceberg. Retailers reported only one-in-ten (that’s just 9%) of customer theft offences to the police service.

Higher prices, shop closures

It’s worth bearing in mind that all of us end up paying for this heightened criminality by way of retailers necessarily having to hike up their prices.

An additional knock-on effect is witnessed through shop closures which can lead to vandalism in town centres. This may realise a reduction in safety with a parallel increase in the fear of crime. In some cases, whole communities are blighted.

Rubbing salt into this particular commercial wound, the average cost per incident of criminal damage jumped by 114% in 2012-2013 (ascending from £962 to £2,062).

It’s fair to say that retail crime can – and does – create many more victims other than the retailers themselves. Criminal activity by the minority is most certainly having a substantial impact on employees and honest shoppers alike.

It doesn’t end there, either. The Retail Crime Survey 2012-2013 reports that robberies were up 48%. By contrast, burglaries fell by just less than 50% compared to 2011-2012. However, there’s a sinister caveat bereft of a silver lining. Although burglary numbers have decreased, the cost of each incident actually rose from £1,730 to £2,067.

Of late, retail crime has evolved from physical shoplifting through the front door (which, alongside supply chain fraud, still continues to have the biggest impact) towards more complex crimes (among them the aforementioned organised robbery, staff theft and cyber crime).

Last year witnessed a dramatic increase in fraud, up by 15% across 2012-2013, while ‘e-crime’ has also burgeoned. Without doubt, retailers are facing an increasingly sophisticated type of criminal.

Solutions to the problem

The recession-centric struggles of the UK High Street aside, the added crippling cost of theft could force many retailers to close more and more branches, with SMEs likely to be hardest hit.

What can be done to stem the retail crime tide?

It’s evident that, despite retailers investing an average of £2 million each on crime and loss prevention measures, they do need additional help and support.

On a practical note, the BRC recommends that there should be a single, national definition for business crime in the UK to help measure (and ultimately solve) these problems. In what is a timely coincidence, a definition has just been devised by the National Business Crime Forum and subsequently ratified by ACPO.

The BRC also feels that police forces ought to routinely publish business crime data and share that vital information with retailers. By extension, Police and Crime Commissioners must collaborate with retailers on an ongoing basis to build dedicated business crime strategies.

The hope is that, by working in genuine partnership, retailers, the police and Government can build positively on the introduction of the National Crime Agency and the National Cyber Crime Unit.

In tandem with such intelligence-led security solutions across retail communities comes the further development of physical and electronic security solutions.

Product security is no longer just about safeguarding the shop floor. Digital marking and Radio Frequency Identification (RFID) tracking, for example, are now playing a key role in protecting the whole supply chain, from the warehouse right through to the end customer.

As The Shield Group noted in its response to the Retail Crime Survey 2012-2013: “Improvements in Electronic Article Surveillance (EAS) systems, in-store and local CCTV and other technological advances are discouraging criminals and helping managers better allocate their human resources. Technological advances are also assisting many small retailers to react to crime while it’s being committed.”

Tackling fire safety issues

A further pressing concern for those in the retail sector is fire safety. Minimising the risk of fire incidents is of critical importance, and a converged approach focused on both security and fire is now the favoured choice of many.

Electrical appliances can be the root cause of fire, normally by way of lax care procedures or electrical faults. Kitchens and staff rooms may also be the starting points.

Retailers who stack flammable goods in storage rooms should note that these are a further high risk zone for fire breakout.

Sadly, arson remains the root cause of many retail-related fires. On that basis, it’s wise to ensure the business is well equipped with solutions such as fire extinguishers and smoke alarms, etc.

In terms of Best Practice, emergency exits must never be blocked. Regular checking is vital, as is continual training for members of staff and the formation – and practice – of evacuation procedures.

To witness the latest developments in retail security and fire safety, IFSEC International and FIREX International are the go to destinations. These events are the leading platforms where the latest solutions are showcased including; Video Surveillance, access control and intruder alarm solutions.

As fire and security systems continue to become more integrated, these co-located shows present the opportunity for visitors to stay on top of the latest developments in the industry.

Taking place from 17-19 June at ExCeL London, visitors will be able to experience educational sessions from industry leaders and gain knowledge on the most vital topics currently being discussed at the IFSEC Academy and FIREX Academy

Find out more information or register for IFSEC International here.

Register for FIREX International here.

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