The retail sector is very important in terms of UK economic activity, being a keystone for the vibrancy of high streets and strongly tied to our lives as consumers, investors, or workers. However, despite its enormous importance, it still suffers from some quite serious problems, above all crimes associated with this sector, so-called retail crime, which disproportionately affects that sector, some quite sober realities for business owners and potential entrepreneurs.
As a leader in the UK’s security services market, we understand the serious need for awareness and preparation against the threat being faced by retail operators. Below, we present key statistics that paint the picture of the state of retail crime today and then map strategies that can help counter such risks toward a safer business environment:.
Understanding the Impact of Retail Crime
The impact of crime within the retail sector is far from straightforward. Actual losses to a business from crime include financial loss at the point of occurrence, but this can also be seen in lost productivity, increased insurance premiums and additional security measures that may push budgets beyond their limits. Exposure to crime also contributes to increased stress levels and reduced employee morale as it can generally effect performance and increase staff turnover.
The customers too are not exempted as the shopping experience can be pretty badly affected by these overt security measures and by an unsettling feeling that crime is afoot. In the long run, it can result in low footfalls and lack of customer loyalty, two essential elements for retail success.
Statistical Overview and Implications
Recent statistics reveal several disquieting aspects of retail crime. For example, some forms of crime, such as cyber-attacks have gained prominence, as rest of the world does in its embracing of digital evil deeds. Thus, if retailers hope to optimize their resource allocation be it in cutting-edge cybersecurity measures or augmented security within their stores, they will need to look at these general trends.
Statistics also alert the potential investor of a retail business to the problems that may be encountered on its road to success and might point out how resilient the investment would be. Statistics make the world of reality even more vivid for the businesses’ surroundings, resulting in better preparation and strategic planning.
7 Key Statistics on Retail Crime
Retail crime does not only disturb business activities, but it is also high on financial stress and personal jeopardy. ZAM FM Ltd throws light into the alarming trends and statistics in sharp relief about the challenges of today’s retailers.
1. Over 8 Million Incidents of Theft Last Year
According to the British Retail Consortium, over 8 million theft incidents battered the retail sector last year. This is a staggering figure that has testified to a persistent problem in small, as well as large, retailing environments with theft being ranked as one of the key threats to the trade. The frequency of such thefts calls for a comprehensive security plan integrating technology with personnel to monitor and prevent further crimes. More investment in advanced surveillance systems and proper training to make shop staff recognize theft behaviors are to be expected from retailers as deterrence to any probable loss. Furthermore, the patterns and timings of theft may be understood to deploy resources for effective deployment to minimize the incidence of such events.
2. Multi-million pound theft toll on small stores
The financial loses were more pronounced in the retail industry, especially for small stores where each loss counts more. The average cost of theft per occurrence in small retail stores stands at an average of £1,066. The heavy weight can easily weigh down the revenues and bottom line of a smaller company, preventing such a business from investing in further growth or even maintaining operations. For many small traders, losses translate to downsizing staff, stock, or, in worst scenarios, closing operations. Total security solutions such as CCTV and alarm systems should be in place for these businesses if they are going to protect their goods. Furthermore, engaging the local police and community watch scheme will also help secure the commodities.
3. Confectionery, Not Alcohol, Tops List of Stolen Goods
It would probably come as a shock to many that confectionery items top the stolen items list in retail stores, something that goes far beyond the costly ones like alcohol. This evidence is very revealing of the opportunistic nature of most thefts, in which the culprit looks at the smallest and easiest ones to carry out that will easily fit out of premises. With these findings, there is a need for retailers to modify their security policy in identifying items of high value that are likely to be stolen, like sweets and chocolates and meats, to safer or monitored parts of the store. Applying product tagging and electronic article surveillance will frighten thieves away while the employees will easily recognize the stolen goods.
4. Last year, violence afflicted one in four independent retailers
Nearly one in four independent retailers polled said they experienced some level of violence over the past year, which is an extreme safety concern that is far more serious than lost sales. Much of this type of violence is actually spillover from disagreements over store policies, such as refusing to sell to minors or refusing to serve drunken customers. These are not only threats to staff but can also drive away customers from shopping there. Retailers must have training of staff on how to de-escalate conflict; invest in panic buttons; ensure staff have safe and efficient ways of reporting incidents of violence, and receiving a response.
5. Over 800,000 Cases of Verbal Abuse Last Year
Over 800,000 more cases of verbal abuse are reported within the retail sector last year. Verbal abuse leads to developing an unwelcoming atmosphere for employees as well as customers because the workers’ morale decrease and this eventually leads to increased turnover. Retailers can do this by having zero-tolerance policies toward verbal abuse of employees or staff. Support and counseling services for affected staff, with consequences for the perpetrator, can be implemented as well. Training of staff on dealing with stressful situations and ensuring a respectable environment to shop in are critical measures in minimizing these occurrences.
6. Retail Theft Costs Top £1 Billion
Retail theft now costs over £1 billion a year. A very obvious thing from this is that this is a serious matter. Of this total loss, the vast majority is accounted for by loss through customer shoplifting. Loss by employees also adds a serious weighting to these figures. As a result, retailing suffers serious impact on profitability and sustainability of trading. Stronger security, quality staff selection and vetting, periodic audits, and tighter stock control would help guard against such losses. Common platforms among retailers that would be able to share best practices will also be useful in bringing out a clearer stand against retail crime.
7. Sharp Rise in Overall Costs from Crime Has Increased by 32% Since 2021
A 32% increase in the cost of crime incurred by the retail sector since 2021 indicates a spiraling challenge caught off guard by retailers. This is a resultant manifestation of the increasing sophistication of the perpetrator and the vulnerabilities within the retail sector. In order to counteract this growth, retailers must invest in the most sophisticated security technologies-most notably, AI-powered surveillance and data analytics capabilities-to get better predictions and prevention of potential threats. Creating a proper crime prevention strategy, working with the law enforcement department, and creating a sense of security within the community are the most important steps that can prevent this sky-rocketed cost increase.
What These Statistics Mean for Retailers Moving Forward
These crime statistics set some very challenging stages, perhaps for retailers, but crime statistics must always raise questions regarding proper functioning in future strategies to improve safety and minimize crime. This period of reflection can really be important for first-time entrants and established players into the market.
Beyond the adoption of strong retail security solutions, which shall be discussed later, even the legal environment is also evolving to support the cause of strengthening the retailers’ security.
Harsher Punishment for Retail Crooks
There is a growing number of statutes to punish retail worker crime offenses. On average, the committed crimes that are violent and aggravated against retail workers are punished more seriously than comparable crimes committed elsewhere. This simply reflects an increased perception of a greater threat to the security of retail employees.
More Crime Police Commissioner Interest
The role of PCCs has become more important in these wake of a pandemic. Whether previously the retail sector, more than felt forgotten but something has changed. Indeed, now the overwhelming majority of PCCs report that they will put more effort into retail crime, which makes a huge shift in emphasis toward the protection of their retail environments.
More Government Policing
Official statements by key government figures, the most recent by policing minister Chris Philip, emphasize the commitment of the authorities to combat retail theft. The government has focused attention on the industry to try to address the widespread problems of theft and shoplifting that are creating hectic moments for retailers.
Such combined developments seem to herald a shift towards a more secure and more supportive environment for the retail sector. Indeed, however, positive impact on crime statistics largely depends on the efforts that retail can conscientiously contribute and on cooperation among all the concerned parties.
How to Protect Your Retail Business from Crime
While attitudes to the law have certainly changed, and policing has altered, much of the onus rests with the security measures you install in your retail environment for either of these approaches to really work. ZAM FM Ltd is aware of the importance of security and feels obliged to offer relevant security recommendations for retailers.
Retail Security Guards Are a Necessity
Our extensive experience in the security industry, time and again has proven that visible, professionally instructed security guards are an excellent deterrent to crime. They can act not only as your first line of defense but also bring you a host of benefits for your security program.
Heavily trained on conflict de-escalation, our guards possess a sharp understanding of what to look out for in a crime and analyze every activity that takes place for your retail store’s safety from common crimes that may spring up.
Lastly, security personnel make use of the CCTV system in monitoring all activities within the premises and full coverage of activities with very fast responses in case of security breaches.
CCTV For Long-Term Business Retention
Technological advancements have ensured ongoing support for CCTV systems in retail security. Such systems are considered to be very fundamental and essential not only as a deterrent but as a monitoring facility that may be more exposed to the threat of crime within your store.
The presence of CCTV, not only reduces the crime risk but also aids in providing much-needed video footage to law enforcement in the aftermath of a crime activity, which helps solve such cases easily and promotes recovery.
Retail Store Detectives Are Your Secret Security Measure
Our retail store detectives are trained to conduct undercover operations especially. They blend so well with customers to secretly survey the place. They will watch your sales floor, especially as it gets busy, and watch for suspicious activities and respond in the quickest time possible.
Their covert presence enables them to garner critical insight without overt deterrence through uniforms, among other things.
Consider Key Holding for Maximum Security
Key holding services offer key holder solutions with regard to the management of access to your premises at times when the doors are not open, and you are away from the premise. Maintaining a set of keys in a secure location outside the premises will ensure access of authorized persons to your store is always possible for additional peace of mind and operational flexibility.
