The cost of crime is devastating the UK’s retail industry, with shopkeepers recording total losses of almost £1.04 billion in the past 12 months alone as a result of criminal activity. When the cost of crime prevention and insurance premiums is added, the total increases to a staggering £1.8 billion.
Shop crime in Britain is adding to the burden businesses are already facing as a result of the ongoing economic crisis. The stress of the spiralling cost of living has made 2023 a tough financial year for many.
The long-term trend is indicating an increase in retail crime, with the costs having almost doubled since 2016/17. Business owners are advised to put preventive measures in place to keep their premises safe and secure.
Common crimes against business premises
Robberies, burglaries, damage to premises and shoplifting caused 90% of the total losses, with eight million separate incidents in these categories costing businesses £953 million in the past year. Burglaries made up 30% of the recorded incidents.
According to a report from the British Retail Consortium, shoplifting alone has increased by 23%, with three-quarters of retail staff experiencing verbal abuse and even violence when challenging the perpetrators.
Official figures show a trend of “persistent quarterly increases” in the crime rate, after a decrease during the Covid pandemic, when the lockdowns kept shops closed and people at home. Now, the figures are creeping up again, continuing the long-term upward trend.
Online fraud has reduced to £30 million since the record pandemic levels, when retailers lost £76 million to fraudsters. This was blamed on businesses unfamiliar with online sales having to learn about it in a hurry when their high street stores had to close.
Although online fraud has dropped, it continues to rise on the high street.
How do crime rates impact a business?
It’s not only retailers who suffer from the impact of retail crime, but also employees and customers. Retailers operate on low profit margins to try and attract cash-strapped customers. Any financial losses to crime and extra spending on crime prevention reduces their ability to keep prices down.
When a business has less money, it’s also more challenging to improve conditions for employees and the overall consumer experience. Retailers must take the incidents of theft and burglaries seriously.
Police believe there may be more retail crime than the survey suggests, as some goes undetected and unreported. This is because retailers are reluctant to undermine the overall consumer experience by having obvious policing in their store. However, they can’t afford to turn a blind eye when it comes to significant financial losses.
Some shopkeepers have also complained that the police don’t seem to consider shop thefts as “real” crimes if the value of goods stolen is less than £200. However, this isn’t the official police stance.
How are businesses suffering from local crime?
Retail crime is worse in certain locations than in others, according to research by the Association of Convenience Stores. Crime has risen to a “record high” UK-wide, with 35% of retailers saying their financial losses have increased. A further 28% say the crime rate has remained the same in the long term, with no sign of anything new being done to tackle the issues.
The ACS blames organised crime, with thieves stealing to order and selling on high value items such as household products, beauty items, alcohol and even meat and coffee.
London retailers are the worst affected in the UK, with 48% of shopkeepers in the capital saying theft has increased over the past year. Birmingham and Leeds also feature highly on the crime list.
Will insurance cover your business?
Although retailers who have been victims of crime can put in an insurance claim to cover their losses, this will cause their insurance premiums to increase. As more businesses are forced to make claims, prices will start to rise in general.
The UK Commercial Crime Insurance Market Update uses data from insurers such as AIG, Zurich and Chubb to monitor the market. According to figures released in February 2023, the number of commercial claims had increased by 19% in the past year. Incidents of burglary and theft make up one-fifth of annual insurance claims for SMEs, including retailers.
How can retailers help prevent break-ins?
Retailers are turning to more secure shop fronts in the fight against crime, such as installing a toughened glass window, which not only looks aesthetically pleasing, but also provides a high level of security.
Today’s modern glazed shopfronts enable maximum visibility, creating a welcoming exterior for customers, while also deterring would-be thieves. A frameless glass shop front made from 10.8mm or 12mm laminated or toughened glass is exceptionally strong.
The toughened glass is created through the use of a heating and cooling process over multiple layers. This means the glass shop front can be completed safely without using aluminium profiles in the main area. Extra strong glass makes it hard for someone to break in.
Fire-rated glazing provides different levels of protection, depending on your needs – measured in time periods of between 30 and 180 minutes. A new, safer shopfront comprising fire and heat-resistant glass can be created as part of a tested and approved glazing system, which must be installed by specialists.
The shop workers’ trade union, USDAW, is calling on the government to take retail crime more seriously. The organisation is urging government, police and court representatives to work more closely with retail employers to combat the crime wave.