DISTURBING stats show that retail theft costs $430 a year for every resident in just one US state.
Hard-hit firms are passing on charges to unfortunate shoppers – who have to shell out more dollars as a result of spiralling criminal activity.
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Following rampant theft at chains such as Best Buy and Target, Forbes dug deep to find out which states are reporting the most retail burglaries and robberies.
It found that 90 per cent of small business retailers nationwide have experienced theft at their stores so far in 2023.
Forbes added: “The state with the highest average total value of stolen goods per capita is Pennsylvania, where the total value of stolen goods is $430 per capita.
“Fifty-six per cent of retail small business owners said they anticipate theft during the 2023 holiday season.”
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Its survey also found:
- The majority of small business retailers (79 per cent) said their monthly losses from theft were between $500 and $2,500
- To make up for losses due to theft, most retail small business owners have increased prices (64 per cent) and/or installed security cameras (50 per cent)
Forbes said that theft rates in the US “can cause devastating losses for small business retailers.”
LARCENY
The magazine added: “Only five per cent of small business owners said they never experienced customer theft at their brick-and-mortar store.
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“Opening a small business is a tough endeavor in itself, and dealing with the repercussions of theft can make the job even more difficult.”
According to its analysis:
- Three of the five states least impacted by retail crime are located in the South – Mississippi, Georgia and Alabama
- Washington state ranked as the state most impacted by retail crime, “averaging $347 lost per resident”
- The nation’s capital “saw the most instances of larceny/theft across the US in 2022” – the total value of stolen goods in Washington D.C. spiralled to $336 per capita in 2021
- Maine ranked in the top 10 worst states for retail crime’s cost to business; the total value of stolen goods per resident was $228
- In Hawaii, the Aloha State “averaged $60 per resident in lost tax revenue due to retail crime” while the value of stolen goods per resident equalled that of Maine – $228
Forbes also passed on some advice for retailers struggling to get a grip on theft.
SURVEILLANCE
It suggested using hidden cameras “strategically;” change the store layout so it is more open, and well-lit; and install an electronic access control system for restricted areas, such as stockrooms to deter theft by employees.
Organized retail crime gangs have been targeting big brands in the US, including Target and Best Buy.
Retailers across the States have been taking extreme measures to combat the growing theft problem.
CRIME SHUTS STORES
Just two months ago, Target made the shocking announcement that it would shut down nine stores in major cities due to unprecedented crime and theft.
These include closures in New York City, Seattle, and Portland, after Target CEO Brian Cornell warned that historically high crime rates could force other execs to make tough decisions.
“We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” Target said in a news release.
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Many stores are finding it hard to combat theft, which can sometimes lead to violent confrontations between thieves and employees.
“Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire,” said David Johnston, the vice president for asset protection and retail operations at the National Retail Federation.
https://www.the-sun.com/news/9634335/retail-theft-costs-us-state-shoppers-higher-prices/