Theft on the rise in UK stores as cost of living crisis grows

21 November 2022 - 09:35 By Katie Linsell
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Theft is on the rise in UK supermarkets along with the soaring cost of living.
Theft is on the rise in UK supermarkets along with the soaring cost of living.
Image: Bloomberg

The bright yellow security labels and products boxed in hard-to-conceal packaging on Britain’s supermarket shelves have a story to tell: theft is on the rise along with the soaring cost of living. 

Incidents of shoplifting in the UK increased 18% in the 12 months through June as the highest inflation in more than four decades has pushed up prices on items ranging from bread to pasta, making it more difficult for consumers to afford basics. 

With more inflation set to come, theft may spread further, and retailers have become more vigilant about shoplifting, or “shrink”,  as the industry calls it. Stores that used to attach anti-theft devices to pricey items such as alcohol have shifted to also protect unlikely products such as butter, cheese, washing detergent and protein bars, some of them retailing for £2 (about R41).

“It has been a theme this year, there’s no two ways about it,” Marks & Spencer Group chief financial and strategy officer Eoin Tonge said.

“When the inflationary period hit, we saw shrink increasing, as did the rest of the market place. There have been more measures put in place by most retailers, whether it be guards or tagging.”

Tesco and J Sainsbury are among more than 100 retailers that called on British police in August to focus on retail crime as the cost of living weighs heavily on shoppers. Tesco ramped up security measures earlier this year, including in-store personnel, chair John Allan told Times Radio.

‘Desperate measures’

“I don’t sympathise with people who shoplift, but I can understand desperate people taking desperate measures,” Allan said at the time.

Grocery price inflation hit a record 14.7% last month, adding an extra £682 (about R13,998) to the average annual shopping bill. More than a quarter of UK households said they are struggling financially — twice as many as last year — and the majority said higher prices on food and drink are a major concern. 

Store theft often increases in times of financial hardship, with many retailers noting more cases during the financial crisis. The increase in energy bills and upcoming rises in mortgage rates are expected to put a serious strain on consumers across the country. About 16% of households reported in April they were already having to skip meals, and many have turned to food banks for support.

“There’s pressure on families and personal budgets and also pressure over Christmas in terms of having to give gifts,” said Richard Lim, CEO at research consultancy Retail Economics.

“All these are factors which could see shoplifting rise.”

The return of shopping at bricks and mortar stores after Covid-19 lockdowns and social distancing is a contributing factor to more shoplifting.

Regional department store Morleys Group recently invested about £750,000 (about R15.3m) at its Upminster department store, including refitting the perfumery department to keep products in locked cabinets and drawers while leaving testers easily accessible. The company’s Brixton store, which has been refurbished for £4m (about R82m), uses locked drawers for brands like Dior and Jo Malone. 

“Shop theft certainly is on the increase,” said Bernard Dreesmann, chair of Morleys.

“Money is tighter.”

More stories like this are available on bloomberg.com


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