Retailers prepare for an increase in crime during the Christmas shopping period

Retailers prepare for an increase in crime during the Christmas shopping period 

Shoplifters are gearing-up for their busiest time of the year as Christmas[1] approaches.

This season could be one of the worst on record for theft as festive fraudsters[2] prepare to steal more than €5.4 billion worth of goods from European retailers over the next month, according to a report out today (1 December 2010).

Shoplifting for Christmas 2010, an independent study conducted by the Centre for Retail Research, which also produces the Checkpoint Systems-sponsored Global Retail Theft Barometer, highlights that thieves across the continent will treat themselves – and their loved ones – to an additional €168 million worth of goods this year compared with 2009, as Professor Joshua Bamfield, Director of the Centre for Retail research and author of the study, explains:

“Some people may be surprised by the predicted increase in crime over the festive period given that this year, overall shoplifting levels have decreased[3]. But we’re entering into a difficult economic time of year with consumers questioning whether they can cope with the after-effects of the recession. Naturally this will stimulate a steep increase in theft over the next few weeks.”

And shopkeepers should beware. Although shoplifting in general is more often committed by females, the average seasonal shoplifter is typically 25 ½  years of age and male. Indeed, more than half of all retail thefts during the Christmas shopping season are likely to be carried out by men. Female shoplifters, though, tend to steal goods with higher price tags. Overall, the average amount stolen per incident during this time period is likely to top €103.25.

But it's not just the average person on the street committing these crimes. Employees will help themselves to a few million Euros worth of merchandise over the holiday period, too. 1.7 billion will be lost through product and cash theft, as well as fraudulent transactions undertaken by staff members. With huge numbers of seasonal workers hired to work on the tills, in stockrooms, at distribution centres and behind the scenes at e-retailers, store operators need to be especially aware of the potential increase in theft during this busy time.

Professional and semi-professional thieves as well as foreign gangs looking to sell goods on, also make up a large proportion of the offenders alongside drug addicts and thieves stealing to order for friends and relatives.

Rafael Alegre, VP & GM Europe Customer Management at Checkpoint Systems, a security and merchandising specialists said: “Some of the most expensive and popular goods are in very high demand and the re-sale price achieved can be much higher at Christmas than at another time of the year. However, it’s not just about selling goods on. Often people steal items that they need for household celebrations such as party products and crackers, to avoid having to pay the premium price charged for these during the festive period.

“And it’s not difficult to see how they get away with it. Christmas is an extremely busy shopping period making it easier for thieves to steal goods without being noticed. Sometimes, there is not enough time to train temporary staff on the signals to look out for, meaning during peak times shoplifters can get away with stealing items using tactics that permanent employees would be taught to look out for and action before it’s too late.”

Branded film and TV merchandise, DVD box sets, iPads, iPhones, gaming equipment, watches and celebrity autobiographies are amongst the most stolen products at Christmas – by number – with alcohol, women’s clothing, fashion accessories, perfume and gift sets topping the list by value.

Rafael concluded: “Retailers really need to be on their guard against shoplifting in the run up to Christmas. Some great work has been done during the last year in reducing the overall amount lost to retail theft, so it would be a real shame to see all that effort put to waste in the run up to the festive period. Some anti theft devices can even be applied at the point of manufacture to avoid staff having to apply these labels in store.”

The Global Retail Theft Barometer recently highlighted that European lost €33.4 billion to theft between July 2009 and June 2010, a decrease of 4.4% compared with the previous year. 

Most stolen product categories this Christmas are expected to be:

1. Alcohol, including whisky, vodka, red bull, rum-based products and tinned products
2. Women’s clothing
3. Fashion accessories
4. Perfume
5. Gift sets
6. Health & beauty including gift packs
7. Toiletries for men, aftershave, razors and razor blades
8. DVD gift sets, blockbuster films, iPods, games consoles, electronic games, wii Fit
9. Sportswear, trainers and football strips
10. Food and festivities, meat, cheese, salmon, tinned foods, exotic foods

Costs of Christmas Crime 2010

About The Centre For Retail Research
The fourth edition of the Global Retail Theft Barometer (tenth edition for Europe) has been produced by Professor Joshua Bamfield, Director of the Centre for Retail Research (www.retailresearch.org) with the cooperation of Checkpoint Systems, Inc. The CRR is an independent organization providing research and consultancy for the retail sector dealing with the changing face of retailing and focusing on retail fraud and crime. It has carried out extensive studies dealing with the costs of crime and the application of electronic and computerized systems to combat shop theft and fraud in many parts of the world.

About Checkpoint Systems, Inc.
Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint enables retailers and their suppliers to reduce shrink, improve shelf availability and leverage real-time data to achieve operational excellence. Checkpoint solutions are built upon 40 years of RF technology expertise, diverse shrink management offerings, a broad portfolio of apparel labeling solutions, market-leading RFID applications, innovative high-theft solutions and its Web-based Check-Net data management platform. As a result, Checkpoint customers enjoy increased sales and profits by improving supply-chain efficiencies, by facilitating on-demand label printing and by providing a secure open-merchandising environment enhancing the consumer’s shopping experience. Listed on the NYSE (NYSE:CKP), Checkpoint operates in every major geographic market and employs 5,700 people worldwide. For more information, visit www.checkpointsystems.com