Retail groans under increasing theft
The prices are rising, leading to an increase in shoplifting incidents. The situation is particularly favorable for professional shoplifters as there is a skills shortage in retail. The damage caused to retailers is becoming increasingly significant, with an expert from the EHI Trade Research Institute, Frank Horst, stating that it has reached a turning point.
Retail in Germany is gearing up to combat shoplifting. The expansion of security measures is a priority for many retailers this year, according to Horst. The industry is alarmed by figures showing that thieves stole goods worth 2.8 billion Euros in the previous year, a 15% increase from the previous year.
"We have reached a turning point where the increase in shoplifting has taken 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 identifies several reasons for this. "Price increases have pushed some people into financial difficulties and they have stolen more frequently." Another problem is the skills shortage in retail. "In many stores, there is less staff on duty today. Thieves find it easier to operate in such circumstances. Staff presence deters shoplifting indirectly," says Horst.
The trend continued in 2022, with experts seeing it as a return to "normalcy" of the pre-Corona era. Among the most popular items stolen from 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 thieves are opportunists, but at least half are professional thieves who operate in gangs. A survey by EHI shows that many retailers expect shoplifting to continue increasing.
The total inventory losses in 2023 have increased by 5% to 4.8 billion Euros. This includes losses due to shoplifting by customers, employees, and suppliers' personnel, as well as organizational errors such as incorrect price markings. According to Horst, this translates to approximately one unpaid shopping cart in every 200. The German state also suffers a loss, with approximately 560 million Euros in sales tax revenue being foregone.
"We have markets where there is an increase in inventory losses, but also many that remain stable," said Rewe CEO Lionel Souque. The supermarket chain has reportedly taken various measures. "Ten years ago, we removed all entrances and opened them up at Rewe, allowing customers to enter directly. We have since reintroduced this in some markets," says Souque. At some locations, there is more security personnel and detectives.
Other companies are also vigilant. "We see a changed situation at Ikea Germany," said a spokeswoman for the furniture retailer. They work closely with investigative agencies to prevent and solve shoplifting cases. Aldi Nord, Edeka, and Lidl declined to comment on the matter when asked.
CCTV surveillance is on the rise.
Trade Association-CEO Stefan Genth demands tougher action. "Trading companies should be able to rely on the fact that the state with its authorities ensures reliable and efficient respect and protection of property." Effective deterrence is important. But penalties were too 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 expenses in the German retail trade amounted to 1.55 billion Euros in the year 2023, while the total costs for inventory differences and their prevention amounted to more than 6.3 billion Euros. The internal personnel costs for all activities related to the theft risk, such as the application of security labels, trainings and theft reports, are not included in this.
The German Retail Federation, led by Trade Association-CEO Stefan Genth, advocates for stronger action against shoplifting, notably organized shoplifting. Retail giants like Rewe are implementing measures to combat theft, such as reintroducing controlled store entries in some locations and increasing security personnel.
