The retail industry is facing a crisis. Since COVID struck, we have seen shoplifting incidents rising across Australia. This threatens the livelihoods of retail and undermines the safety of our communities. This surge should alert retailers, law enforcement, and industry bodies alike to clarify that urgent action is needed.

The Sobering Reality: Staggering Statistics

Here are some statistics from Victoria’s Crime Statistics Agency in their latest report.

Shoplifting offences had increased in the 12 months to September by 7308, or 27.9 per cent, to 26,229 – the highest on record.

I found some figures for some other states here. 

This is a summary of the stark picture:

• Victoria: Shoplifting offences increased 27.9% in just 12 months, reaching 26,229 incidents—an all-time high.
• Western Australia: Shoplifting is up over 40% compared to last year, significantly higher than pre-pandemic levels in 2019.
• New South Wales: A 36.1% surge in offences totalling 27,015, surpassing figures from previous years.
• Queensland: Shoplifting incidents were consistently higher in 2023 than in any month of the past two decades.
• South Australia: A shocking 31% increase in offences, with 17,572 cases recorded.

I just got some figures from the United Kingdom. 

Their figures mirror this trend, with a 37% jump in offences, the highest since records began in 2003.

The Root of the Problem: More Than Just Cost of Living

In my experience, while the rising living costs may contribute, but the erosion of law enforcement also plays a significant role in fueling this shoplifting epidemic.

Your Bottom Line: Understanding Shrinkage

The critical first step for any retailer is understanding your "shrinkage." This is the gap between the inventory you should have and what you have. Shrinkage is caused by:

• Shoplifting
• Employee theft
• Errors & paperwork mistakes
• Spoilage & damage

Calculating Shrinkage:

1. Full Formula: (Starting Inventory) + (Purchases) - (Sales) * (1-Profit Margin) - (Ending Inventory) = Shrinkage
2. Quick Estimate: (Purchases) - (Sales) * (1-Profit Margin) = Approx. Shrinkage
3. Shoplifting Rule of Thumb: Roughly 1/3 of shrinkage is often due to shoplifting.

Why Calculate?

• Awareness: Forces you to face the actual impact on your business.
• Targets Prevention: Is it specific items? A problem aisle? Numbers guide solutions.
• Measure Improvement: Did your new security measures reduce shrinkage?

Make a planogram for shoplifting.

This tells you the extent of the problem by quantifying current shrinkage levels and identifying problem areas. Drawing problem planograms in the shop of the problem places helps a lot.

A picture is worth a thousand words.

This image could be a planogram of your shop with your problem areas marked.

The information is available from your stocktake figures.

Blue = Good

Yellow = Moderate to bad

Red = Very bad

blank = Zero

See how it visually shows the problem areas.

Detail on how to do it are available here.

YOUR Business Defense Checklist

The fight against shoplifting demands a comprehensive approach:

• Staff are Key: Train employees to spot shoplifters, intervene safely, and understand protocol.
• Technology as Ally: Invest in modern security systems, such as cameras, anti-theft tags, and data analytics to spot patterns.
• Eyes on the Floor: Redesign aisles for visibility and remove blind spots where thieves hide. Do a simple experiment: walk around your shop and imagine you are a shoplifter. Now, where do you strike?
• Draw a map of your shop: Mark the places with the highest shoplifting. Details above.
• Never Stop Learning: Shoplifting tactics evolve; look up YouTube as many shoplifters explain how they do it. 

Calculate Your Shrinkage Now

The fight against shoplifting is an ongoing battle for the soul of our retail sector. By understanding your losses and acting decisively, you protect not only your own business but the well-being of your entire community. Let's stand together to make our stores safer and our businesses stronger and reclaim a sense of security for everyone.

Shoplifting isn't just about the cost of stolen goods. It's a threat to your business. If word gets around that you are an easy mark, you're in big trouble. One of the best methods of dealing with it is having cameras right at the checkout. It's simple but surprisingly powerful and can make everyone think twice. I have spoken about this many times. Plus I can quote from personal experience doing this for years, that this will work.

Why It Works: You're Not Catching Thieves

You might be surprised, but those cameras aren't mainly about catching bad guys after the fact. The trick is psychology! When people know they're on camera, even the most honest of us feel more careful. 

Time Is Money: Proof for when you need it

Of course, sometimes you do need to play detective. Matching up your till records with that camera footage is way easier when you've got timestamps on your videos. This is solid evidence to take to the authorities if something serious goes down. Its actually one of the few pieces of evidence that the authorities do accept.

Let's Be Honest: Nobody Loves It

We all get it; staff and customers might feel a bit iffy about being on camera. But with shoplifting on the rise, protecting your business is the top priority. That's the message to communicate clearly to your team.

Tips for Success

• Clear Signage: Let everyone know cameras are rolling with visible signs. This is often a legal requirement.
• Show a video of the filming: The idea is to let people know you are recording them.
• The Right Tech: If you want, we can supply cameras that sync into your POS system.
• Staff: Unfortunately, staff theft can be a factor alongside customer shoplifting, so let them know. That's why cameras protect everyone's jobs.

To make the most of your till cameras, ensure they are focused on these key elements:

• The Staff Member: Clearly capture who is conducting each transaction.
• The Transaction: Record the exchange of money and goods between the customer and staff member.
• The Till: Video of the opening of the till drawer and the process of cash or card payments being processed. 
• Timestamps: This is crucial for quickly matching camera footage to specific transactions in your POS system, providing clear evidence if needed.

Real-Life Aussie Business Example

"Since adding till cameras, that sneaky feeling of items 'walking away' has gone down loads. My stress levels have gone down too! It was definitely the right move." - Sarah an Owner of a newsagency,  in Adelaide

Small Retailers, Big Protection

Such systems are relatively cheap today. They're an affordable smart move for businesses of all sizes. Think of it less like sneaky surveillance and more like adding an extra layer of honesty to your checkout.

Need help getting set up? We are available to help you find the right camera solution!