Retail trade - Increase in shoplifting - "Turning point reached"
The retail industry in Germany is gearing up against shoplifting. The expansion of security measures is a priority for many retailers this year, according to Frank Horst, an expert at the Retail Research Institute EHI. This is due to worrying figures: Thieves stole goods worth 2.8 billion Euros in the past year, according to an EHI study published on Tuesday. The resulting damage to retailers was 15% higher than the previous year. "We have reached a turning point where the increase in shoplifting takes on a special dimension and requires special attention," says study author Horst.
There is an increase in shoplifting in the food, clothing, and drugstore sectors, among others. Horst sees several reasons for this. "Price increases have put some people in financial difficulties and they have stolen more often." Another problem is the labor shortage in retail. "In many stores, there is less personnel on duty today. Thieves have an easier time because personnel presence deters shoplifting indirectly," says Horst. The numbers had already risen in 2022. Experts saw this as a return to "normalcy" of the pre-Corona era.
Among the most popular stolen items in supermarkets and discount stores are spirits, tobacco products, cosmetics, razor blades, energy drinks, baby food, and coffee. Meat, sausages, and cheese are also frequently stolen. Most of the time, it is opportunistic thieves, but at least half are professional thieves who operate in gangs. An EHI survey shows that many retailers expect shoplifting to continue to increase.
The state suffered damages of 560 million Euros
The inventory differences in 2023 amounted to 4.8 billion Euros, an increase of 5%. This amount includes losses due to shoplifting by customers, employees, and personnel from suppliers and service companies, as well as organizational errors such as incorrect price markings. According to Horst, one in every 200 shopping carts goes through the store without being paid. The German state also suffers losses. So, it loses approximately 560 million Euros in sales tax revenue.
"We have markets where there is an increase in inventory differences, but also many that are stable," said Lionel Souque, CEO of Rewe. The supermarket chain has taken various measures, according to its own statements. "Ten years ago, we opened all entrances and removed turnstiles at Rewe, so that customers could enter directly. We have reintroduced this in some markets," says Souque. At some locations, there is more security personnel and detectives.
Trade Association: Penalties are not imposed often enough
Other companies are also alert. "We see a changed situation at Ikea Germany," said a spokeswoman for the furniture retailer. They work closely with investigative authorities to prevent and solve shoplifting. Aldi Nord, Edeka, and Lidl declined to comment on the topic when asked.
Trade Association-CEO Stefan Genth calls for tougher action. "Trading companies should be able to rely on the fact that the state with its authorities reliably and efficiently ensure respect and protection of property." Effective deterrence is important. But penalties were often not imposed, procedures were discontinued. "In particular, organized shoplifting must be combated more rigorously," said Genth.
Many companies have already expanded their CCTV surveillance and trained their staff, as shown in the EHI study. Preventive measures in German retailing amounted to 1.55 billion Euros in expenses in the year 2023, with total costs for inventory differences and their prevention reaching over 6.3 billion Euros. Internal personnel costs for all activities resulting from the risk of shoplifting, such as applying security labels, training, and reporting shoplifting, are not included in this figure.
- Frank Horst, an expert at the Retail Research Institute EHI, highlighted that retailers in Germany are focusing on expanding security measures this year due to the increasing shoplifting incidents.
- According to the EHI study published by Horst, shoplifting led to a 15% increase in damage for retailers in the past year, with thieves stealing goods worth 2.8 billion Euros.
- In response to the rising shoplifting rates, CEO Lionel Souque of Rewe has implemented measures such as reintroducing turnstiles in some markets and increasing security personnel at certain locations.
- The trade association, represented by CEO Stefan Genth, has urged for stricter penalties for shoplifting, emphasizing the need to combat organized shoplifting more effectively.
- Among the popular stolen items in supermarkets and discount stores are spirits, tobacco products, and baby food, with at least half of the thieves operating in professional gangs.
- Genth noted that many companies have already strengthened their CCTV surveillance and trained their staff, leading to preventive measures amounting to 1.55 billion Euros in expenses in 2023.
- The Skills shortage in retail has also contributed to the increased shoplifting, as fewer personnel on duty allows for easier opportunities for thieves to steal consumer goods, impacting both retailers and the German state, which loses approximately 560 million Euros in sales tax revenue from the resulting shoplifting incidents.
