Retail crime cost tops $1b
Theft more violent and organised: study
Retailers are f acing increasingly organised and violent criminals in what has become a growing $1.1 billion-ayear problem, according to a study by Retail NZ and the University of Otago.
Greg Harford, Retail NZ’s general manager for public affairs, says retail crime is a massive issue and retailers are worried criminals are becoming more aggressive.
“Retail crime no longer involves just petty theft from stores. Retailers are reporting a sizeable number of violent and aggressive incidents every year, as well as more sophisticated fraud incidents,” Harford said.
“This shows that retailers need to be more alert to a range of criminal activity, as well as taking steps to protect their employees and customers from the threat of violence.”
University of Otago department of marketing senior lecturer John Guthrie said the total cost is greater than the $1.1b reported in losses.
“Our research shows that retailers are spending around $514 million a year on crime prevention, plus crime takes a massive toll on the individuals who face violence, intimidation and who are fearful about going to work,” Guthrie said.
“However, the research also shows that money spent on preventative measures does pay off. The biggest retail firms who spend the most on crime prevention have a noticeably lower rate of recorded crime overall, so it’s a good idea for retailers to review their security arrangements and do what they can to make it tough for the criminals.”
Guthrie says a concern is that retail crime is becoming increasingly organised and more violent.
“The research shows that 38 per cent of retailers have noticed changes in the profile of retail crime in the past 12 months, and are seeing more brazen criminals than in previous years. Theft by employees is also growing in significance, accounting for 18 per cent of losses now, compared to 12 per cent at the time of the previous survey in 2003.”
Harford says it is important all crime is reported to police.
“The survey shows that, overall, just 31 per cent of retail crime goes unreported, eit her because there is a perception t hat t he police won’t act, or because it is timeconsuming and difficult to do so. It is heartening that 63 per cent of retailers think police do an ‘okay’ or ‘great job’ of managing crime, but an online tool or app would go a long way towards making it simple and easy for retail crime to be reported,” Harford said.
Retail NZ is renewing calls for the Government to establish a dedicated Retail Crime Reduction Taskforce within the police. Harford also urges funding a social change programme to emphasise crime is not acceptable, and bringing in an “infringement ticket” style offence for petty theft.