As retailers face an alarming surge in organized retail theft across the nation, they are increasingly adopting a non-confrontation approach, asking their workers to ignore shoplifting incidents to safeguard their safety and avoid potential legal liabilities.
However, this growing crime trend is not without consequences for consumers, as the cost of shoplifting is being passed along to them in the form of higher prices.
Bank holding company Capital One projects that losses from retail thefts will soar from $86.6 billion last year to at least $115 billion in 2025.
To mitigate these losses, stores have resorted to locking up merchandise, enhancing security measures, and cutting their losses to deter confrontations with thieves.
While the average shoplifting incident costs retailers around $461.86, the price tag of potential consequences from employee injuries or legal repercussions far exceeds this figure.
In response, businesses have implemented a zero-tolerance policy for employees confronting thieves, opting to absorb the losses instead.
“They’d rather take a loss on $500 in goods than eat what it costs to pay a medical bill, get sued, or replace an employee,” noted Jason Friedman, a Dallas-based attorney specializing in workplace lawsuits.
Consequently, the burden of these losses is being indirectly transferred to consumers, who are experiencing the impact of higher retail prices.
The National Retail Federation (NRF) reported that inventory shrink—a term referring to items lost due to theft, errors, or other reasons—amounted to a staggering $94.5 billion in 2021, a 53% increase from 2019.
As retailers face mounting losses, some big-box stores have withdrawn from crime-ridden areas, while others have been forced to lock up certain high-theft items to prevent further losses.
Unfortunately, such measures contribute to increased prices for consumers, who ultimately bear the brunt of the stolen merchandise.
The rising cost of organized retail theft has also become a matter of public concern.
A NewsNation/Decision Desk HQ poll found that 72% of voters believe employers should not penalize workers for intervening against shoplifters, hinting at the growing unease surrounding the non-confrontation policies.
While some public officials are collaborating with retailers to combat organized shoplifting gangs, the FBI emphasizes that organized retail theft contributes to driving up consumer prices.
As lawmakers and businesses grapple with the impact of soft-on-crime policies and the surge in theft incidents, the retail industry faces the delicate task of balancing employee safety, consumer prices, and financial stability.
As the trend of non-confrontation policies persists, the retail landscape continues to evolve, with the impact of organized retail theft reverberating across stores and consumers alike.
Finding solutions to combat this growing threat while preserving consumer affordability remains a pressing challenge for the industry.
