In 2024, the UK has seen a sharp increase in shoplifting cases, with reports indicating a 25% rise compared to the previous year. This surge has been felt across the board, from high street stores to local corner shops. In fact, recent studies estimate that UK retailers lost approximately £1.8 billion to shoplifting in 2023, and this figure is set to exceed £2 billion this year if current trends continue.
There are several reasons for the spike. The ongoing cost-of-living crisis has pushed more people to desperate measures, while organised crime rings have become more sophisticated, targeting stores with high-value items that are easy to resell. On top of this, retailers are grappling with reduced staffing levels due to economic pressures, which of course makes it easier for shoplifters to strike.
Shoplifting has always been an issue for retailers, but the huge surge seen in 2024 is more than just a minor annoyance—it’s a significant threat to the bottom line, costing retailers millions each year. As theft continues to rise, retailers must take proactive steps to protect their inventory and their profits. One of the most effective ways to combat this is through regular and thorough stocktaking.
The Impact of Shoplifting on Retailers
There are so many consequences to the big jump in shoplifting this year: the most obvious being financial. Every stolen item represents a direct hit to a retailer’s bottom line. But the repercussions don’t stop there. Higher levels of theft can lead to increased insurance premiums and security costs, further straining already tight budgets. Moreover, persistent shoplifting can deter customers, especially if the store becomes known as a theft hotspot.
And let’s not forget the emotional and psychological toll on staff. Employees can feel demoralised or even threatened by repeated thefts, especially if they are expected to confront shoplifters or if they face the frustration of dealing with inventory discrepancies. This stress can push up turnover rates, which further increases costs for retailers who then need to recruit and train new staff.
The Importance of Effective Stocktaking
It’s time for retailers to take decisive action to tackle the impact of shoplifting – this is where effective stocktaking comes into play. At its core, stocktaking involves counting and verifying the inventory you’ve got but it’s SO much more than just counting items on a shelf—it’s about gaining a clear, accurate picture of stock levels to identify discrepancies early and address them promptly.
Effective stocktaking can help in the fight against shoplifting in several ways. Firstly, it helps you quickly identify patterns of loss, which can indicate where theft is most likely occurring. For example, if certain items are consistently missing, or if there is a regular shortfall in a specific department, these could be signs of targeted theft that require immediate attention.
Furthermore, regular stocktaking allows retailers to tighten their inventory control measures. By keeping a close eye on stock levels, retailers can adjust their ordering practices to minimise excess stock, which is often a prime target for shoplifters. This also helps reduce wastage and ensures that high-value items are stored securely and monitored closely.
How to Implement Effective Stocktaking
Effective stocktaking doesn’t have to be complicated or time-consuming. It can range from manual counts to using real time stock management software that provides data and analytics. The key is consistency. Regular stocktakes—whether they’re weekly, monthly, or quarterly—enable retailers to stay on top of their inventory and quickly spot any discrepancies that could indicate theft or other forms of shrinkage.
Of course, investing in staff training will improve the efficiency and accuracy of your stocktakes. Some businesses also find it beneficial to hire professional stocktaking services.
In an era where shoplifting is on the rise and retail margins are under pressure, effective stocktaking is not just a best practice—it’s a necessity. By regularly and accurately tracking their inventory, UK retailers can better protect their businesses from the financial and reputational damage that shoplifting can cause.
So, if you’re a retailer looking to safeguard your profits and ensure your store remains a welcoming and safe place for customers and staff alike, consider reviewing your stocktaking processes today. If we can do anything to help along the way, please do contact the team at Abacus Valuers at book@abacusvaluers.co.uk today.
