As we gear up for the holiday season, retailers are facing an unexpected challenge: a significant rise in shoplifting. Interestingly, this may be tied to the growing trend of automation in stores.
Fewer employees in stores mean more chances for thieves to strike. Industry groups are advocating for new federal laws to tackle the issue, but it might be more effective if businesses recognized the critical anti-theft role that their employees can play.
Retail theft is hitting companies hard. In 2022, the National Retail Federation (NRF) reported a considerable $112.1 billion loss, up from $93.9 billion in 2021. While official statistics for 2023 are still pending, insiders suggest the problem hasn’t subsided.
A smaller survey by loss-prevention experts at Jack L. Hayes International, which focused on just 22,000 stores, revealed theft losses rising from $4.9 billion in 2019 to $7.1 billion in 2022. This includes everything from petty theft to organized crime rings swarming stores for valuable goods.
It’s a misconception that large urban areas like New York are the only ones affected. In fact, Newsweek notes Chattanooga, Tennessee, holds the highest shoplifting rate in the country, with 89.83 incidents per 100,000 people, closely followed by Fayetteville, North Carolina, with a rate of 83.43. It’s important to note that many thefts go unreported because stores often feel it’s not worth the trouble to pursue them legally.
In response, many stores are locking up merchandise. The NRF points out that retailers are also exploring high-tech solutions to curb theft.
However, legal measures are tempting for some. The Combating Organized Retail Crime Act proposes establishing a retail theft unit within the Department of Homeland Security. Since 2022, nine states have enacted tougher laws on retail theft, with more states considering similar legislation. Florida has labeled “organized retail theft” as a felony.
Perhaps the best and simplest solution is the oldest one in the book: hire more staff. Having more employees on the floor can deter theft by making it riskier for potential thieves and fostering a sense of community within the store. This way, shops wouldn’t feel like soulless vending machines.
Anyone who’s shopped in a major retail store lately, particularly in cities, has likely noticed the locked-up merchandise and the scarcity of staff. These stores often rely heavily on self-checkouts with minimal employee presence, which can be frustrating when you need help accessing a product behind glass.
With so few employees around, it’s no surprise theft has increased. Shoplifting thrives on opportunity, and these opportunities are more plentiful now than ever. Criminologist Emmeline Taylor from the University of London explains that the rise in self-service checkouts, paired with reduced in-store staff, makes theft more appealing and easier.
Journalist Marc Fisher, who recently examined the shoplifting surge for The Atlantic Monthly, agrees that store executives recognize the issue. He shares, “Every retail executive, security expert, and criminologist I spoke with linked automation to this crisis. Over recent years, the drive to automate everything—checkout systems, security cameras, AI monitoring—has led to significant staffing cuts. These changes were partly to save money and because hiring and retaining retail staff has become increasingly difficult.”
Ultimately, there’s no replacing human vigilance. Cameras need monitoring and employees on the floor to respond to suspicious activities. Without enough staff, these surveillance systems become little more than expensive toys.
The scarcity of employees means not only fewer eyes to catch shoplifters but also increased reluctance to confront thieves without the backup of colleagues. Often, store policies discourage staff from intervening, fearing injury and liability. According to the NRF, as of 2023, 41% of retailers reported that employees are prohibited from stopping shoplifters, up from 38% the previous year.
Susan Judith, a communications director from D.C., observed this firsthand while working for a major retail chain during the COVID pandemic. “The policy was non-engagement with shoplifters,” she recounts. “Employees faced disciplinary action if they tried to intervene. Word got out quickly, leading to unsustainable levels of theft.”
Retailers should remember that employees are invaluable, not only in terms of productivity but also for the personal touches they bring—keeping the store tidy, assisting customers, and managing unforeseen situations. A visible presence of staffers often discourages theft far more effectively than any locked case or camera ever could.
Solving the shoplifting issue doesn’t require complex legislation, harsher penalties, or even sophisticated surveillance gear. It’s simply a matter of bringing more employees into the fold, something retailers can and should prioritize.
Sean Higgins, in his capacity as a research fellow focused on labor policy at the Competitive Enterprise Institute/Tribune News Service, provides insight into this pressing issue.
