Shoplifting has always been problematic for some types of retailers, but it has recently become more mainstream. The problem is now impacting almost all Brick-and-Mortar retailers and has been growing at an alarming rate since 2019. Data shows a significant and concerning upward trend, with a 93% increase in 2023 over 2019. In 2024, this number increased again by another 14% over 2023. Theft numbers for 2025 have not yet been released, but estimates are that Retailers will lose $47.8 billion from Direct Retail Theft.
Key factors influencing this theft trend are economic pressure and rising inflation. The trend has continued to grow, regardless of the changes retailers are making to their policies and the way in which they are managing products. Retailers are walking a fine line of trying to continue to provide customer convenience and ease of shopping experience versus protecting their assets. This has become exceedingly difficult when the breadth of what is being stolen is also rapidly changing. Originally, shoplifting was focused more on apparel and higher ticket items, things people may have just “wanted”, but it is now occurring on daily essentials or things people “need,” such as food, personal care items, and over-the-counter medicines, which are, in many cases, easier to obtain.
This increasing trend of theft has resulted in many retailers taking a multi-layered approach to try to minimize the impact on their bottom line while still trying to balance it with a positive customer shopping experience. Improvement in security tags and stickers due to technology has made it easier for security measures to be added to more products, and smaller products, and can be included on lower-priced items. Additional cameras with AI ability are making shoplifting easier to spot and providing the retailer with the ability to share data with other retailers and law enforcement. Awareness has also led to increased and reconfigured employee training to heighten their awareness of suspicious behaviors normally associated with potential shoplifting. Product placement has also been studied, and floor layouts have been changed to locate high-theft items closer to cameras and employee stations or to be contained in strategically locked displays. These locked displays can be a pain point for customers and employees alike. Locked products tend to frustrate the buyer because they cannot just pick an item up on impulse or because they cannot easily touch and feel it. When customers have to wait for an employee to come to them, they often feel ignored and unimportant. For the Retailer, it requires additional employee training, making sure employees can open the products and the time to stand there while the customer makes a purchase decision. All these things can lead to a decrease in sales.
Many retailers acknowledge that increased security or locking up of products leads to lower sales numbers and customer frustration, but it is still being viewed as a more affordable option than hiring and training additional staff. They also agree that it may be pushing more consumers to make online purchases on everyday items. Many retailers accept that these practices will not be going away in the short term, and customers should assume the same. There are a few larger retailers that are beginning to test new technology, new apps and RFID, which can be used by customers through their cell phone to unlock cases. These new programs will ease the frustration of retailers and consumers alike, and while not available yet, there is light at the end of the tunnel.