Petty theft; not a new phenomenon in the world of retail by any means – but something that is certainly on the rise in recent years. In fact, according to a recent article by The Economist, the UK has seen a 24% increase in petty theft in 2023 compared to 2022. It might seem like a nuisance that is to be expected when running a retail business – but it’s got bigger implications than you may think.
How does petty theft occur so regularly?
Picture this… you’ve popped into your favourite high street shop, checking out the latest trends or picking up your regular essentials. Meanwhile, there’s another seemingly normal customer next to you eyeing up that new spring dress or pack of ankle socks – but what you don’t realise is that they’re already plotting how they can snatch it without anyone noticing. That’s petty theft – the silent, seemingly ‘normal’ predator of retail.
What impact does this have on retailers?
Now, you might be thinking it’s just a couple of items here and there, is it really such a big issue? Here’s the thing – those small thefts add up, and they add up fast. Retailers often take a hit to their bottom line due to these incidents – and it’s not just about losing a few pounds; it can seriously affect stock levels and, ultimately, their ability to serve their honest, paying customers.
When retailers lose merchandise to theft, they’re not just losing what they’ve already paid the manufacturer for the item, they’re also losing out on potential sales because they now have to replenish (and spend again) on that stolen item. Plus, if petty theft becomes rampant and continues to grow at the rate it currently is, it can lead to retailers to hike up prices to cover their losses – and no customer or business owner wants that to happen.
What can be done to help prevent it?
It’s not all doom and gloom for retail businesses – this is where frequent stocktaking comes in. By regularly keeping tabs on their inventory, retailers can spot discrepancies early on and take preventive measures to curb petty theft sooner rather than later, before the damage is done.
Stocktaking isn’t just about counting how many pairs of shoes are on the shelves every few months; it’s about ensuring that every item is accounted for and that discrepancies are investigated promptly. It’s like a security blanket for retailers, giving them the confidence to tackle petty theft head-on and keep their shelves stocked for eager, honest shoppers.
How does stocktaking help in these circumstances?
- Simply put, stocktaking lets you know what you have – and what you don’t have. As a part of that, it’s going to tell you what is missing and if performed regularly, where those items are being lost (it isn’t always from theft, it could be lost in distribution, through a staff error or any number of different places in the building that haven’t been checked).
- Once you have that information, you can address the issues you’re facing and start minimising losses. That in turn of course means you can start maximising profits and prioritising honest, paying customers.
- The benefit doesn’t just stop at identifying issues and solving them either – it also lets you avoid being sold out (meaning that the demand is there for items you wouldn’t be able to sell) and it avoids you being overstocked with items left to depreciate in your storage.
So next time you’re browsing the high street, spare a thought for the hardworking staff behind the scenes who are keeping a watchful eye on their inventory, helping to prevent petty theft and keep prices as low as possible for the honest paying customers who are at the heart of every retail business.
At Abacus Valuers, we have worked with hundreds of businesses to minimise the causes and consequences of shoplifting for more than 35 years, from big-name high-street brands to small, local businesses.
If you would like to discuss how we can improve your retail stocktaking and tackle petty theft as a result – give us a call on 01637 874609 or make an online enquiry here, and we’ll be happy to answer any questions you may have.
