RETAILERS have paid the price as the rate of shoplifting skyrockets across Newcastle and Lake Macquarie.
NSW Bureau of Crime Statistics and Research (BOCSAR) quarterly report data shows the rate of people treating themselves to a 'five-finger discount' has grown by about 56 per cent in the two years to March 2024 across both areas.
Business Hunter chief executive Bob Hawes said the dramatic increase in retail theft was "disturbing", particularly as local businesses tried to bounce back from COVID shutdowns.
"I know there was a dip initially in theft when COVID first hit and businesses were closing and restricting, people weren't going out and they were shopping online," he said.
"Now businesses are again being subjected to common theft that can really hurt, particularly in a small business where margins are skinny and getting sales to recover that loss can be quite an effort."
In the 12 months to March 2024, police responded to 1205 incidents of retail theft in Newcastle, up from 770 in 2023.
In Lake Macquarie, the number of thefts from a retail store in the same period was 924, up from 591 in 2023.
Mr Hawes said he heard anecdotal reports of theft increasing when businesses reopened after COVID, as many struggled with staff shortages.
"In retail, where they would normally have three or four shop assistants, which might have provided some passive security, they only had one or two people in there and that created an opportunity," he said.
"Not every business can afford the luxury of having really, really fat margins.
"If something is lost through shoplifting, sometimes they've got to sell another five, six, seven or up to 10 times more of that article to recover that margin, so it can be quite significant and dramatic and I don't think people realise that."
Retail theft: not a 'victimless' crime
Crime Stoppers NSW has partnered with the Australian Retailers Association to target retail crime.
In May, Crime Stoppers NSW chief executive Peter Price said retail crime takes many forms, from shoplifting to coordinated robbery by crime gangs, abuse, and assaults against retail workers.
"These crimes don't only affect Australian retailers but the frontline workers, and ultimately the community, that means families. We all have them or are part of one so be respectful," he said.
"Australian retailers lose billions of dollars each year in stock loss, absenteeism, and workers compensation claims as a result of these crimes.
"Retail workers face threats and abuse, both verbal and physical, when confronting shoplifters, putting their own safety and that of nearby shoppers at risk."
According to Mr Price, in many cases retail crime is well-planned and coordinated, undertaken by people working together to use smart phones and apps to identify, select and executive crimes.
He said it had a flow-on effect to the wider community when essential products such as baby formula were stolen creating supply shortages for customers.
In Newcastle, the rate of retail theft occurred at double the NSW rate in the 12 months to March 2024.
Since October 2021, retail theft has steadily increased across the state, up 47.5 per cent year on year to June 2023.
The most frequently reported stolen items are liquor, including bourbon, whiskey, and vodka, which accounts for 37 per cent of incidents, followed by clothing at 22 per cent.
Licensed premises and general wholesalers have recorded the biggest increase in stealing in retail in the past five years, while department or clothing shops and chemists have reported the largest decrease.
According to BOCSAR data, the average value of items stolen was $440 in 2022-23.
Mr Hawes said the cost-of-living crisis could be driving people to steal, but that it was still wrong.
"People shouldn't be doing it, they shouldn't be feeling that they have an entitlement to deceive a business," he said.
A NSW Police spokeswoman said officers in Lake Macquarie and Newcastle actively engaged individual retailers and the community, providing advice and tips on crime prevention strategies.
"Local officers also work closely with shopping centre management, loss prevention officers and other relevant stakeholders to run proactive overt and covert operations in and around retail outlets to disrupt offending and target offenders," she said.
"These are run regularly throughout the year."
Australian Retailers Association chief executive Paul Zahra said data showed that 60 per cent of in-store thefts were perpetrated by the same 10 per cent of individuals, who were four times more likely to resort to aggression.
"This issue is not just about major retail chain stores, small family businesses are also on the receiving end of abuse and other crimes," he said.
"These small businesses rely on every sale to keep their lights on and to continue employing staff, especially in regional areas."
Crime Stoppers NSW has urged anyone who suspects a person of shoplifting to tell a member of staff or security and take note of their appearance, the time, date and location.
Anyone with information about retail crime can contact Crime Stoppers on 1800 333 000.
Tips for retailers to help reduce the risk of theft include:
- Be alert to strangers or individuals who may be observing your business or who are asking questions about how your business runs.
- Ensure all back and side doors and windows are kept secure.
- Do not discuss cash holdings or movements of cash in public.
- Reduce cash held at counters to a workable minimum.
- Install a safe in close proximity to the cash register that is secured to a sturdy fixture or remove cash to a secure area.
- Make use of signage and stickers both inside and outside your business promoting security measures such as; time-delay locks, video surveillance and minimum cash held on premises.
- Consider the installation of additional security devices such as duress / panic buttons and CCTV.
- Lock the rear entrance if working alone, prior to delivery, employees arriving and once break up is completed.
