What: Economic pressures and ineffective prosecution are fueling an increase in retail theft, forcing retailers to reconsider employee safety protocols and reporting incentives.

Why it is important: The combination of rising theft, increased violence, and low prosecution rates creates an unsustainable environment for retail workers, demanding comprehensive solutions beyond traditional security measures.

The retail industry faces escalating challenges as economic pressures and rising prices contribute to increased theft and organised retail crime. With only 1 in 48 reported shoplifting cases resulting in arrest, store associates making minimum wage are increasingly reluctant to risk their safety by reporting incidents. The National Retail Federation's 2024 report indicates that 73% of retailers have observed more aggressive and violent behavior from shoplifters, while 84% express heightened concern about violence during theft incidents. The situation is exacerbated by ineffective prosecution rates, leaving reported criminals free to return to stores where they were reported. Industry experts suggest a two-pronged approach: implementing financial incentives similar to whistleblower programs and providing enhanced protection measures for employees who report crimes. The crisis reflects broader societal issues, requiring retailers to shift from treating store associates as "sacrificial watchdogs" to viewing them as partners deserving both compensation and protection.

IADS Notes: The complex relationship between retail crime and employee safety represents a growing industry crisis. According to Fashion Network in January 2025 , retail crime reached record levels in the UK, with violence and abuse incidents exceeding 2,000 per day and theft costing retailers £2.2 billion annually. Retail Week's November 2024 research  revealed that 41% of retail workers worry about their safety during peak seasons, with 56% experiencing theft and 51% facing hostile customer interactions. Retail Dive's January 2025 coverage  of Walmart's body camera pilot program highlighted how retailers are shifting focus from loss prevention to worker protection, as 91% of retail security executives report increased shoplifter aggression compared to 2019. The Robin Report's August 2024 analysis  of "untailing" showed how extreme security measures, while protecting assets, can negatively impact both customer experience and staff morale. The industry's challenge lies in balancing effective crime prevention with employee safety and operational efficiency, particularly as economic conditions and reduced prosecution rates (1 in 48 incidents) continue to embolden retail criminals.

In the US, organised retail crime is growing - what to do?