Recognizing a Potential Thief in a Store: Top Five Signals to Watch Out For
In the retail industry, shoplifting has emerged as a significant concern, causing billions of dollars in losses annually. According to recent reports, the United States and the United Kingdom are among the countries most affected by this issue.
In the US, retail shrinkage—which includes external theft such as shoplifting—accounted for about $94.5 billion in losses in 2022, with external theft representing roughly 32.8% of total shrinkage losses. The National Retail Federation (NRF) further reports that external theft (including shoplifting) was responsible for about 36% of total retail inventory loss in North America in 2023, with total retail shrinkage costing over $112 billion. This suggests that shoplifting-related losses in the US are on the order of tens of billions of dollars annually.
Similarly, retailers in the UK face significant losses due to shoplifting. Reports indicate that billions of pounds are lost yearly due to this crime. Shoplifting incidents have surged in recent years, exacerbating these losses. For instance, shoplifting incidents rose 93% in the US since 2019, with corresponding increases in dollar losses of 90% during the same period.
The issue of shoplifting is not limited to these countries. A study from Justice Quarterly found that 70% of shoplifters focus on escape routes over goods, indicating a global trend.
So, how can retailers identify potential shoplifters? One method is to observe customer behaviour. A customer who enters the store who is not the typical customer could be a red flag. Shoplifters may avoid making eye contact with staff or other customers, and they often scan exits when they enter a store, such as the door or cameras. If a customer freezes or shifts quickly when the observer moves, they may be a potential shoplifter.
Shoplifters may also seek shelter in dressing rooms to stash smuggled merchandise. They often shove in as much merchandise as they can and rarely browse, getting in and out very quickly. If a customer lingers in a store but their gaze skips price tags and focuses on blind spots or exits, they may be a potential shoplifter.
In some cases, shoplifters may work in pairs. One person may distract the manager or associate while the other person shoplifts. Shoplifters may attempt to blend in by wearing large coats or baggy clothes. They may travel with a lifter and distractor, and sometimes have multiple distractors.
The issue of shoplifting is not just a nuisance for retailers; it's a costly problem that's growing. Shoplifting costs the retail industry $30 billion every year and this number is growing. Thirty-three percent of people surveyed admit to having shoplifted at least once, suggesting a widespread issue.
In the face of these challenges, retailers must remain vigilant and employ strategies to reduce shoplifting. This includes educating staff on identifying potential shoplifters, installing security cameras, and using technology to deter thieves. By taking these steps, retailers can protect their profits and maintain a safe shopping environment for their customers.
In the realm of finance, the escalating costs of shoplifting in the retail industry pose a significant threat to profit margins, with over $30 billion being lost annually worldwide. Evidently, the digital era has not deterred criminal activities such as shoplifting, as reported incidences have risen considerably in recent years, especially in sectors like crime and justice.
