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inadequate approaches struggle to keep pace with changes such as shoplifters ’ evolving tactics . And the adoption of new checkout technologies can have unintended consequences . For example , the rise of self-service checkout and ‘ shop & go ’ capabilities , which can introduce new vulnerabilities and offer guilt-free and more convenient ways of shoplifting .
Meanwhile , we ’ re also seeing the effects of factors from outside the industry . One is the UK Government ’ s Anti-Social Behaviour , Crime and Policing Act 2014 , under which shoplifting below a value of £ 200 was recategorized as anti-social behavior , meaning offenders are more likely to be fined without a court appearance – thus reducing the perceived risks . Another is the rise of organized crimes through social media , with social platforms introducing a new layer into organized retail crime ( ORC ), and shoplifters exchanging methods via blogs and posts to glamourize and promote theft .
The consequences for British retailers
Regardless of the reasons behind retail shrinkage , the bottom line is that it has a big impact on UK retailers . It has reduced collective annual turnover year-on-year 1.1 percent , a burden that mostly falls on greengrocers and supermarkets , but also specialist fashion shops and department stores .
This loss of revenue has caused some retailers to save costs through staff reductions , which can have knock-on effects on service quality , customer experience and brand reputation . And when stock runs out because of shrinkage , customers may go elsewhere . Overall , it ’ s estimated that UK consumers are ‘ crime taxed ’ an average of 6p extra on every product they buy due to shoplifting . Alongside the effects on customers , shrinkage also impacts retailers ’ operations . By causing staff to verify stock levels manually and replenish the affected shelves on a regular basis , it can put downward pressure on operational efficiency . Additionally , dealing with damaged or expired goods contributes to waste , further affecting overall efficiency .
Shrinkage can also be associated with violence , exposing staff to risks : Reported instances of violence and abuse in UK shops have risen by around 50 percent in the past year to around 1,300 incidents a day , leaving shop workers feeling vulnerable and anxious . Finally , the higher waste and product obsolescence caused by shrinkage have a negative impact on the retail industry ’ s sustainability and ethical responsibility .
How to tackle retail shrinkage
One thing is obvious : retail shrinkage is a big issue for UK retailers , and it needs to be urgently addressed . Here are four ways to go about it .
1 . Work as a unit : introducing collaboration and industry partnerships A united industry is better equipped to tackle shrinkage . Closer collaboration around this challenge between retailers , technology providers and industry associations fosters an environment where insights are shared , and best practices are collectively refined .
2 . Raising awareness : a collective responsibility From front-line staff to senior executives , spreading awareness about the impacts of shrinkage and the role everyone can play in prioritizing actions and preventing causes , is crucial in tackling losses effectively .
3 . Navigating regulation : striking a balance between security and compliance Understanding the regulatory framework surrounding retail shrinkage is imperative .
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