NRF says retailers lose $112 billion due to “unprecedented theft”

Retail crime has become an increasing problem for retailers in the United States, with incidents increasing and significant financial losses occurring.

Losses from shrinkage totaled $112.1 billion in 2022, compared to $93.9 billion the previous year, the National Retail Federation (NRF) said in a press release on Tuesday (September 26).

“Retailers are experiencing unprecedented levels of theft and rampant crime in their stores, and the situation is getting worse,” said David Johnston, vice president of asset protection and retail operations at NRF, in the press release.

The average shrinkage rate rose to 1.6% in 2022, up from 1.4% in the previous year, the statement said. Internal and external theft accounted for almost two-thirds (65%) of retail shrinkage.

There has also been an increase in violence in organised retail crime: more than two thirds (67%) of respondents reported an increase in violence and aggression on the part of perpetrators compared to the previous year, the press release states.

“Beyond the financial impact of these crimes, the violence and safety concerns continue to be a top priority for all retailers, regardless of size or category,” Johnston said in the press release.

As a result of rising theft and crime rates, retailers are forced to take drastic measures to ensure the safety of their customers and employees, the press release states. These include closing certain stores, reducing opening hours and changing the product offerings in stores.

To combat the rising violence associated with retail crime, more retailers have begun to take a hands-off approach to apprehension of shoplifters, according to the press release. Forty-one percent of retailers said no employee has the authority to stop or apprehend shoplifters, compared to 38 percent last year.

Shoplifters target a wide range of products, including both expensive fashion items and everyday products that can be quickly resold, the press release said. The most commonly stolen items include outerwear, batteries, energy drinks, designer shoes and kitchen accessories.

In response to the growing volume and sophistication of retail crime, retailers are increasing their prevention efforts, according to the press release. These measures include increasing internal labor costs, utilizing third-party security personnel, and investing in technology and software solutions. Employee training on workplace violence has also been increased to ensure employee safety.

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