Shoplifting: how stealing raises UK retail prices, and the hidden costs on consumers in shops

• Theft can force businesses to recover losses through price hikes
• Limited resources and slim margins can make small businesses more vulnerable to shoplifting's impact
• Investments in anti-theft devices and security staff also contribute to higher expenses

Shoplifting is often seen as a victimless crime by those who commit it.

After all, large supermarkets and retail chains make millions, if not billions, of pounds each year; what difference does a stolen item or two make?

But this silent crime has profound and far-reaching consequences that extend far beyond the perpetrator, and its impact reverberates throughout the entire retail ecosystem.

We know that shoplifting blights communities, but does it impact prices, and does it directly affect the wallets of the average consumer?

Here’s what you need to know, as we launch a new campaign amid an epidemic of violence, theft and anti-social behaviour that we’re calling ‘silent crime’.

We want you to tell us incidents that have happened to you, your family or your friends in your neighbourhood; how it impacted you and whether justice was served. We are campaigning for the voices of victims to be heard, and will take your stories to Downing Street.

Does shoplifting raise prices?

When someone shoplifts, the most immediate cost is the loss of merchandise. Retailers refer to this as "shrinkage" – a term that encompasses theft, fraud, damage, or administrative errors that result in stock discrepancies.

Shrinkage eats into a businesses' profit margins. For small businesses, even small amounts of theft can make a significant dent in their bottom line, as their margins tend to be thinner than those of larger retailers.

Larger retailers like supermarkets, while more insulated due to economies of scale, are still significantly impacted by shoplifting on a larger scale due to the sheer volume of stock and foot traffic.

Retailers operate within tight margins, and every loss eats into their ability to maintain competitive pricing. To recoup these losses and remain profitable, they have no choice but to raise prices across their inventory.

Each time a product is stolen, it represents a loss to the shop. For example, if a £10 item is shoplifted, the retailer loses the cost price of that item.

To recover that loss, the shop may need to sell multiple other items at full price, inflating costs for the next consumer. Over time, if the rate of theft increases, the retailer will adjust its pricing across the board to safeguard its profit margins.

Shoplifting also forces businesses to invest more in loss prevention measures, and security systems, surveillance cameras, anti-theft devices, and employing security personnel all incur additional costs.

The cost of maintaining these systems can also be substantial, and retailers will, again, pass these operational expenses onto the consumer in the form of higher prices.

Retailers also often need to purchase insurance to cover losses from theft, but frequent shoplifting incidents can cause insurance premiums to rise.

As these premiums increase, businesses are forced to adjust their pricing to accommodate this new overhead.

What is the impact on small businesses?

While the above effects apply to all retailers, the extent to which they are felt differs depending on the size and scale of the business, and small businesses, such as local corner shops or independent boutiques, often suffer disproportionately.

Unlike large chains, which can distribute their losses across a wide range of products and shops, small businesses have limited resources.

If an independent retailer loses £100 worth of merchandise to theft in a week, that could represent a significant portion of their revenue.

Because small businesses often operate on slim margins, the impact of shoplifting is felt more immediately. To stay afloat, these businesses may have to increase prices on their products faster than larger retailers.

They also may not have the budget to implement advanced security measures, which leaves them more vulnerable to theft, creating a vicious cycle.

This cycle is detrimental to consumers who rely on local businesses, as they’ll likely face higher prices and fewer product options as shoplifting drains resources.

For small shops, shoplifting can also mean the difference between survival and closure. In highly competitive markets, even slight increases in prices could deter regular customers from returning, creating further financial strain.

Is it ever OK?

It’s important to remember that regardless of whether a business is small or large, taking goods without paying for them is considered theft.

Shoplifting is a criminal offence, and while some might argue that stealing food to survive is morally justified, the law doesn’t distinguish between necessity and greed when it comes to theft.

Even in a cost-of-living crisis, when people may prioritise survival over legality or morality, shoplifting is not a sustainable or justifiable solution. It may provide short-term relief, but can also contribute to long-term damage to the local economy.

There are alternative options available to those struggling to make ends meet. Community support systems, charities and food banks exist specifically to provide help during difficult times.

Organisations like The Trussell Trust operate food banks that provide essentials to people in need. Many local councils and charities also offer crisis loans, food vouchers and other forms of support to those facing financial hardship.

To force change, we need to unite and remind ourselves that these 'silent crimes’ are not acceptable. You should be safe and feel safe at work, at home, in the park and in our own neighbourhoods. We need you to tell us your stories in this survey and we, on your behalf, will take them to Downing Street.