Shoplifting Spikes with Self-Checkout: Billions Lost Every Year
Shoplifting results in immense financial losses amounting to billions.
Hey there! Ever wonder what's behind that increase in shoplifting you've been noticing? It seems like self-checkout cash registers might be partly to blame. Here's the lowdown.
In Germany, shoplifting has been on the rise, reaching a staggering 2.95 billion euros in 2024—a 4.6 percent increase from the previous year. But it's not just about a few extra bucks taken here and there. This upward trend marks a third consecutive year of record highs [1].
Why the surge? Well, it seems people are finding it easier to lift items without getting caught with self-checkouts. Even though some shoplifting might be unintentional, thanks to operating errors, there's no denying that self-service systems provide an environment ripe for theft [1].
More frequent shoplifting isn't just a problem for the big players. Drug stores are hit particularly hard, with small, valuable items often being targeted [2]. Slippery slopes, indeed!
Aside from customers, employees and other perpetrators also contribute to these astronomical losses. About three percent more losses than 2023 are reported, totaling 4.95 billion euros [1]. The remaining damage can be attributed to suppliers, service staff, and organizational errors such as price labeling mistakes [1].
Not to be left out, one-third of shoplifting cases are organized—by hired individuals or gangs [2]. So much for shoplifting being a crime of opportunity!
Now, you might be thinking, "Well, if all these thefts are happening, wouldn't we see a spike in reported cases?" Turns out, there's a high dark figure, with approximately 98% of shoplifting incidents remaining undetected [3]. That's a whopping 24.5 million customer shoplifting incidents per year, each worth around 120 euros [3].
Retailers expect shoplifting to continue rising due to staff shortages and long opening hours, making monitoring more difficult [3]. And who can blame them? Cases are often dropped due to triviality [3].
Experts say this increase in shoplifting can be traced back to the proliferation of self-service cash registers. Almost half of companies using them report more shrinkage [1]. So much for expected cost savings!
In an effort to combat theft, retailers are spending millions on security measures, particularly on staff training [4]. Meanwhile, industry leaders like dm's expansion board member Markus Trojansky advocate for relying on trained employees and technology like video systems and anti-theft devices [4].
Politicians, notably the main business manager of the German Retail Association, Stefan Genth, are calling for tougher action against shoplifters, feeling frustrated by the lack of convictions and punishments [4].
And it's not just theft taking a darker turn. Violent tendencies among shoplifters are emerging, with employees increasingly being attacked [4].
So, there you have it. That's the skinny on why shoplifting is reaching record highs and what retailers are doing to address the issue. It seems the age-old question of "Is it stealing if no one sees me?" has taken on new meaning in the self-service era. Stay well and safe out there!
Sources- [1] EHI research institute: Self-Checkout Cash Registers Lead to Increase in Shoplifting, Causing Billion-Euro Losses, ntv.de, lme/dpa- [2] "More Theft in Drugstores," EHI, accessed May 20, 2023- [3] "Economy," Profiting from Consumer Slump: Eating While Shopping Booms, Economist, accessed May 20, 2023- [4] "Many Cases Are Dropped," Economy, Silent Alarm through AI: How Retailers Protect Themselves from Theft at Self-Service Cash Registers, Economist, accessed May 20, 2023
Insights- Self-service cash registers and shoplifting: A connection between the ease of exploitation, normalization of theft behavior, and ineffective inventory tracking systems is causing a surge in shoplifting incidents at self-checkouts [1]. This spike has led retailers to increase their focus on theft detection and prevention technologies, staff training, and collaborating with law enforcement [2].- Organized shoplifting: A significant portion of shoplifting cases are organized by hired individuals or gangs [2]. This type of theft is more prevalent in retail stores that offer self-checkout services, given the reduced oversight provided by these systems [1].- Violent tendencies among shoplifters: The increase in shoplifting has led to a rise in violent incidents, with employees becoming targets of attacks by shoplifters [4]. The growing number of violent shoplifting cases emphasizes the need for retailers to prioritize employee safety alongside theft prevention measures.
Enrichment Data- The primary cause of increased shoplifting at self-checkouts can be linked to the following three factors: (1) increased opportunities for theft due to reduced oversight, (2) normalization of theft behavior due to the "scan and swipe" phenomenon, and (3) difficulties in inventory tracking, which make it harder to detect theft after it happens [2][4].- The impact of increased shoplifting on retailers includes: (1) a rise in theft incidents, (2) higher financial losses due to shrinkage, and (3) a need for operational and security adjustments such as the adoption of theft detection and prevention technologies [2][4].- Relevant solutions being implemented or proposed to address increased shoplifting at self-checkouts include: (1) removal of self-checkouts, (2) adoption of advanced inventory tracking technologies such as RFID, (3) experimentation with alternative checkout technologies, and (4) collaboration with law enforcement to curb theft [3].
The community policy and general-news should address the escalating issue of shoplifting, particularly in self-checkout stores, which have reported a significant surge in losses due to theft, amounting to billions of euros [1]. Finance departments need to consider the continued rising losses caused by shoplifting, which are expected to affect corporate budgets and financial performance [3]. To combat this, employing effective training programs, deploying advanced security measures such as video systems and anti-theft devices, and collaborating with law enforcement should be considered [4]. It's also essential to address the growing instances of crime and justice related to shoplifting, as acts of violence against employees have become more prevalent [4].
