The nation’s retailers are facing a crime spree at their stores from shoplifters since Covid-19

Myer is the latest retailer to call out rising rates of shoplifting, which is at historic highs, with the retail sector forced to invest in security and technology to safeguard their products and profits.

A spike in retail thefts comes as businesses are dealing with labour shortages and continued supply chain disruptions.

The nation’s $400bn retail sector is in the grips of a crime spree that has seen a spike in the rate of shoplifting from stores that is denting profitability and forcing many operators - from the largest corporations to family owned corner stores - to invest more in costly security equipment and infrastructure.

Last week the country’s biggest department store owner Myer revealed theft at its stores over the December half had leapt from 1.1 per cent of wholesale sales to 1.7 per cent, a five-year high.

Supermarket chain Coles and general merchandise chains Kmart and Target, both owned by Perth-based conglomerate Wesfarmers, all called out rising rates of shrinkage - industry code for theft - at their latest earnings results presentations.

It is a trend now extending across many retailers and such is the worrying rise that the Australian Retailers Association (ARA) recently set up a specially targeted ARA Retail Crime Advisory Committee, a collaboration between retailers, government and police. The ARA task force met last week.

It comes as the NSW Bureau of Crime Statistics and Research recently revealed that theft from stores had jumped 23.7 per cent in 2022, the fastest pace of growth in retail crime since records began in 1995.

“What we have seen is, and it’s not just us, it’s across other retailers as well. Obviously we speak to other retailers and share data and security knowledge footage with both police and other retailers, and it (theft) is an increase from where it was,” Myer chief executive John King told The Australian.

“We are investing in loss prevention, both in technology and people on the ground so we see that as an opportunity (to claw back profits ) going forward.”

The theft rates at Myer hit 1.7 per cent in the first half of fiscal 2023 and compare to historic levels of around 0.8 per cent before Covid-19. Theft rates at Myer as a percentage of wholesale sales have doubled since the pandemic began.

“It could be economic factors,” Mr King said, “but also for us we have brands that people want to steal.”

Most large retailers see reducing shrinkage as an opportunity to increase bottom lines.

The ARA, led by former David Jones boss Paul Zahra, is so concerned about the fresh outbreak in retail crime that it has established a special committee to discuss and oversee strategies for its members to combat the problem.

Mr Zahra said the crime spree has added further costs to retail businesses just as they are also dealing with soaring inflation, labour shortages and continued supply chain disruptions.

“Loss from theft is proving to be an increasing risk for retailers, particularly small businesses on tighter margins. Retailers are already battling rising operating costs associated with fuel, energy, labour, supply chains, rent and loans – and crime only exacerbates these struggles.

“We are seeing a move from shoplifting to organised crime. Organised crime is professional shoplifting, involving two or more people who conspire to steal retail merchandise with the intention of reselling the items at a profit.”

He said the extent by which his members are being affected by theft varies. Typically, supermarkets, electronics, fashion and accessory retailers bear the brunt of shoplifting.

“Geography plays an important factor with locations in low-income demographics having a higher exposure to retail crime. Businesses in the larger cities with stores in Melbourne and Sydney are typically more exposed to organised crime gangs and shoplifting syndicates, which we’re told is of increasing concern to police.”

“There’s no definitive cause as to why people shoplift. The increase could be attributed to a range of factors, such as higher school truancy rates, the increasing cost of living or even increased psychological and mental health issues arising from the pandemic.”

Mr Zahra said most businesses are turning to security and technology to reduce losses from theft.

“The need to invest in security ultimately hurts smaller mum-and-dad businesses the most. Many small businesses either can’t afford or make huge sacrifices to install sophisticated security systems.”