Retail Commercial Properties Feel the Costs of Crime

Posted on 22 January, 2012 by MOVEHUT

The total cost of retail crime has soared by 31 per cent to £1.4 billion as the sector is increasingly under attack by serious, organised crime. This number includes the value of goods stolen and damage done, combined with the money commercial property retailers spend on preventing and tackling crime.

The British Retail Consortium’s (BRC’s) Retail Crime Survey 2011, published on Monday shows fewer incidents for particular types of crime, but each incident typically has been more costly and so overall losses have sharply increased compared with the previous year.

Expenditure on crime deterrence by commercial property retailers taking part in the survey rose by 1.4 per cent to £214 million, average spend of £700,000 per company.

This has considerably reduced incidents of opportunistic crime against commercial property stores, however combating the rise in violent crime retailers and their staff are exposed, and require the support of law makers and enforces.

The total number of robberies increased by 20 per cent and the average cost per incident went up 17 per cent from £847 to £989. Most disturbingly, increases in the use of weapons and physical violence were reported.

Other key findings from the study include:

  • More than 35,000 commercial property retail workers suffered from verbal abuse, physical attacks and anti-social behaviour throughout the course of the year, not including staff affected by the August riots. There were 26 incidents per 1000 employees last year, a rise of 83 per cent on 2009/10. The increase is somewhat attributed to staff being encouraged to report all threats and incidents of verbal assault.
  • For the commercial property retailers in the survey the August riots had an impact on more than 20,000 retail staff, representing 1.5 per cent of retail employees. 56 per cent of commercial property retailers affected by the riots also reported a negative impact on sales in the immediate aftershock of the disorders.
  • The projected total value of goods stolen by customers across the whole sector was over £147 million, up £10 million on the previous year. Consumer theft accounted for nearly 60 per cent of the cost of crime for commercial property retailers in the survey. The total number of customer thefts is between 1.5 and 2 million a year, more than one every minute. The number of incidents declined by 19 per cent compared with the previous year but losses still rose as costs per incident went up 21 per cent to £85.50, from £70.44 in 2009/10.
  • The number of burglaries per 100 commercial property stores was down 42 per cent but the cost per incident rose sharply by 83 per cent. The average cost of goods taken in a burglary was more than £2,000.
  • Incidents of fraud increased considerably with 78 per cent of retailers noting a rise. At present, it accounts for more than 28 per cent of retail crime by cost, second only to customer theft.

Director General at British Retail Consortium, Stephen Robertson, said: “Retailers have made significant investment to protect their staff, stock and premises from opportunistic crime. The falling number of many types of crime is testament to the sector’s own efforts.”

He further added: “What is left is a core of more serious and organised criminals who are making off with goods in larger quantities and of higher value. These are violent law-breakers who pose a danger to society at large, not solely the retail sector. “


“Criminals targeting the retail sector need to be punished appropriately, particularly those who use weapons or attack staff. New sentencing guidelines coming into force recognise the impacts of the riots are a start but need to go further. Too many thieves get let off with a fine and there is no comeback when they don’t pay it. There needs to be robust enforcement that reflects the serious impact violent or repeat offenders have on the retail sector and more widely on our communities.”




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