The Problem of Shoplifting
† Sometimes known as retail theft.
This guide discusses measures to reduce shoplifting (theft of store merchandise during business hours). It focuses mainly on the usual shoplifting method of concealing items in clothing or bags. It does not cover unusual forms of theft involving trickery, as occasionally practiced in jewelers' shops. In many cases, the preventive techniques discussed will also apply to "price switching" (switching price tags from less expensive to more expensive items) and refund fraud (returning stolen or fraudulently acquired items for cash refunds). Due to the lack of available research, the guide makes few distinctions between (1) casual, opportunistic shoplifting and (2) shoplifting committed by "professionals," or gangs of thieves who sometimes descend on a particular mall or shopping center to take advantage of lax security or unsuspecting shop owners.
The guide begins by reviewing factors that increase the risks of shoplifting. It then lists a series of questions that might help you analyze your local shoplifting problem. Finally, it reviews responses to the problem, and what is known about them from evaluative research. It will be apparent that there are many gaps in knowledge, and that particularly lacking is information about the market for goods stolen by shoplifters.
Police data seriously under-represent the extent of shoplifting-one of the most common but least detected and reported crimes. This is shown by studies in which researchers have (1) asked people to report whether they have shoplifted, (2) followed people into shops to see if they steal anything, and (3) compared counts of marked items with sales of those items. All three methods have revealed very high rates of undetected and unreported thefts. For example, one careful review of the evidence suggested that only about one in 150 shoplifting incidents leads to the offender's apprehension and subsequent police action.1
It is perhaps not surprising that shoplifting is so widespread. Shops contain new goods, temptingly displayed. Self-service sales methods, now so common, provide ample opportunity for shoppers to handle goods (many of which are prepackaged) and conceal them in clothing or bags. People seem to have fewer inhibitions about stealing from shops than from private individuals. They know they have little chance of getting caught, and, if caught, they can often produce plausible excuses such as forgetting to pay.
The stock control in shops is so deficient that few retailers know how many goods they lose to shoplifters, or even to their own staff. So long as theft and damage of goods, known in the retail industry as shrinkage, does not rise above 2 to 3 percent of goods sold, retailers may pay little attention to shoplifting. Indeed, they have certain incentives to do so: Stolen goods may be taken as tax write-offs; detection and prosecution of shoplifters takes time and energy; mistaken apprehensions can result in lawsuits; and the store could acquire a reputation for crime if it continually reports shoplifting.† This means retailers may be unwilling to take official action against shoplifters, especially those who claim it is their first offense, show fear or remorse, and/or agree to pay for the items stolen.
† In some cases, especially for small shops in transitional neighborhoods, fear of retaliation by the thief might also prevent retailers from reporting offenses to the police.
In addition, some retailers believe that the police can do little about the problem and may be unwilling to get involved.2 Others see the role of the police as simply to take charge of thieves whom store detectives or security staff have caught, and to decide on their subsequent handling. When particularly blatant shoplifting occurs, or when "professional" shoplifters are thought to be operating, merchants may call upon the police to take some kind of preventive action, usually in the form of increased presence or patrols. This may be of little deterrent value, since shoplifting takes place inside the store, away from police view. Consequently, this guide focuses on other preventive actions police might take. In many cases, their most important task is to persuade store owners and managers to improve their security. This is difficult, because many retailers believe that the police should protect them from dishonest people, people who should be caught and punished.† As mentioned, others are content to ignore the problem until it seriously affects profits.3 Whatever the reasons, the police may have an uphill task convincing retailers that their sales practices and lack of security may be contributing to the problem.
† British retailers, in particular, have sought to avoid the term "shoplifting" on grounds that it suggests a less serious form of theft. They prefer "shop theft." However, "shoplifting" has been in use since the 17th century (Walsh 1978).
Faced with these attitudes, it is tempting for police to wash their hands of shoplifting and let the shops bear the consequences. But there are many reasons why this may be shortsighted, including the following:
- Shoplifting is often regarded as an entry crime, from which juveniles graduate to more serious offenses.
- Shoplifting can be said to fuel the drug trade, because it provides the income some addicts need to buy drugs.
- For stores in deprived neighborhoods, shoplifting can seriously erode profits and result in store closures. This can depress employment prospects and further erode the amenities in such neighborhoods.
- Shoplifting can consume a large proportion of police resources in processing offenders whom store security staff have detained. Indeed, the main police role in regard to this offense is to channel shoplifters caught by private security into the criminal justice system. In this regard, the police are at the mercy of merchants who may avoid changing their business practices in favor of simply relying on security staff and police to handle shoplifters. Unfortunately, there is little hard evidence that this results in reduced shoplifting by those arrested or by others who learn about the arrests.††
†† Studies of criminal sanctioning have consistently failed to show any clear deterrent effects. In regard to shoplifting, the chances of getting caught are so low, and the risks of severe punishment so small, that most researchers believe offenders pay little attention to the possible costs (Bamfield 1997; Burrows 1988). [
Full Text ]
For all these reasons, police cannot ignore shoplifting. The challenge facing them is to conduct a thorough analysis of the local problem, guided by the information presented here, to put together a combination of preventive responses.
Related Problems
Shoplifting is only one of the crimes that occur in the retail environment. Other problems requiring their own analyses and responses include:
- employee thefts (usually thought to account for more shrinkage than shoplifting);
- credit card and check frauds;
- burglaries (see related guide in this series);
- smash-and-grabs;
- thefts from open-air or covered market stalls;
- thefts and frauds by delivery personnel;
- vendor frauds, shortchanging and other offenses; and
- harassment of immigrant shopkeepers.
Factors Contributing to Shoplifting
Understanding the factors that contribute to your problem will help you frame your own local analysis questions, determine good measures of effectiveness, recognize key points of intervention, and select an appropriate set of responses. Many of the factors contributing to a heightened risk of shoplifting are under management control, while others, such as seasonal and temporal patterns, are not; even in the latter case, however, knowledge of those patterns can assist in framing a preventive response.
Goods Sold
Perhaps the principal factor determining a store's shoplifting rate is the type of goods sold.4 For obvious reasons, furniture stores have much lower shoplifting rates than, say, convenience or drug stores. The following table shows the most common items stolen in the United States. These include tobacco products (particularly cigarettes), health and beauty products (such as over-the-counter analgesics, decongestants, popular remedies, and birth control products),† recorded music and videos, and apparel ranging from athletic shoes to children's clothing, with an emphasis on designer labels.††
† Clarke (1999) has noted that certain analgesics contain ingredients that can be used in making other drugs, and that decongestants help to produce a high when taken together with some illegal drugs. He has also noted that some frequently stolen products, such as hemorrhoid remedies and condoms, can be embarrassing to buy, and has suggested that stores find embarrassment-reducing ways to sell these products. The self-checkout system recently introduced by some supermarkets might provide a solution. It allows customers to scan and bag their own goods. A conspicuous camera is mounted to monitor the transactions, and a software system detects irregularities. [Full text ] [Briefing notes ]
†† These are national data and are subject to local variations. Some jurisdictions may experience local fads for stealing particular items.
High-Risk Merchandise, by Store Type (based on items recovered from shoplifters) |
|
| Store Type | Merchandise |
| Auto parts | Small accessories: dash covers, compact disc players, driving gloves |
| Book | Cassette tapes, magazines |
| Consumer electronics/ Computer | CDs |
| Department | Clothing: shirts, particularly Hilfiger and Polo |
| Discount | Clothing, undergarments, CDs |
| Drug/pharmacy | Cigarettes, batteries, over-the counter remedies |
| General merchandise | Earrings |
| Grocery/supermarket | Over-the-counter remedies, health and beauty aids, cigarettes††† |
| Home center/hardware | Hand tools |
| Music | CDs |
| Shoe | Sneakers |
| Specialty | Bed sheets |
| Specialty apparel | Assorted clothes with designer labels |
| Sporting goods | Nike shoes |
| Theme park | Key chains, jewelry |
| Toy | Action figures |
| Video | Video games |
| Warehouse | Pens, movie videos |
| Source: Adapted from Hayes (1997), pp. 236, 242-245. | |
††† These items seem to have displaced meat, which many police still believe is the most common item stolen from grocery stores and supermarkets.
The acronym CRAVED captures the essential attributes of these "hot products": they are concealable, removable, available, valuable, enjoyable, and disposable. The last of these attributes, disposability, may be the most important in determining the volume of goods shoplifted. Those shoplifting for a living or to support a drug habit—who account for a disproportionate share of items stolen—must be able to sell or barter what they steal. Unfortunately, little is known about the market for shoplifted goods.5
Store sections carrying hot products are the most vulnerable to shoplifting. One study of shoplifting in a large London music store found that the highest theft rates were in the sections carrying rock and pop recordings (nowadays, it would probably be rap or hip-hop). Equally expensive recordings in the classical music department were rarely stolen.6
Customers
Much shoplifting is opportunistic, which means that shoplifters are often little different from a store's regular customers. Stores that attract younger people in general, and males in particular, are more likely to experience shoplifting: research has consistently shown these groups are more often involved in theft. It is beyond the scope of this guide to discuss all the social and psychological reasons for theft,† though it should be noted that some thieves believe shoplifting harms no one except an anonymous business that can take the losses as a tax write-off.
† See Klemke (1993) for a comprehensive review.
Apart from these factors, researchers have identified some personal characteristics related to shoplifting, and they have also developed typologies of shoplifters.7 Most of this work has little relevance for policing strategies, beyond the fact that in many communities, the groups most involved appear to be juveniles and substance abusers.8
Seasonal and Temporal Patterns
Most shoplifting occurs when stores are busiest, with the majority of incidents occurring late in the week, between Wednesday and Saturday.9 Seasonal shoplifting corresponds with the demand for goods, which means that much shoplifting occurs during pre-Easter, pre-summer and pre-Christmas periods. As mentioned, juveniles commit much shoplifting, and consequently, high-risk times include nonschool days, late mornings and afternoons into the evening.10
Location
Research does not provide a clear indication of the risk factors related to a store's location, but shoplifting rates tend to be higher for stores located:
- in city centers and other busy places, with a large number of casual customers;
- near schools, with many juvenile customers; and
- in deprived areas, with large concentrations of impoverished or addicted residents.
Research also provides evidence that stores that "front onto the open-street appear more likely to attract shoplifting than those in enclosed malls due to greater 'opportunity' to escape from the former."11
Retail Policies, Staffing and Stock Control
To some degree, retail policies, staffing and stock control are management's responsibility, but they are heavily influenced by the broader retail environment: competitive, profit-driven and technology-dependent. For example, stock control has been deficient in the past because the time and effort required to keep proper track of stock have barely been justified by any resulting improvements in profit due to reduced theft. However, increased competition is continually eroding retail profit margins, and thus the incentive to reduce shrinkage is increasing. The more widespread use of merchandise bar coding and point-of-sales technology at checkout is resulting in big improvements in stock control. These improvements can be expected to increase with further technological developments.12
Similarly, sales policies and staffing are partly determined by the broader retail environment. It would be impossibly expensive for most stores to abandon self-service and rely instead on armies of helpful, attentive sales clerks, even though this would substantially reduce shoplifting. The savings in reduced theft would be greatly outweighed by increased staff wages and, possibly, by sales lost as a result of shoppers' being unable to inspect goods at their leisure.
Marketing considerations might also limit the scope for tightening up return policies, which, if too liberal, can encourage theft of goods to be returned for cash refunds. For example, some clothing stores do not have changing rooms because the staff costs of monitoring them to prevent shoplifting may be too great, or because there is no room for them. Such stores must allow the return of clothes that do not fit or are otherwise unsuitable.
Store Layout and Displays
Research provides little guidance, but common sense suggests certain store layout and display features contribute to shoplifting.13 Most of these relate to the staff's ability to supervise shoppers, and stores at greater risk include those with:
- many exits, particularly where they are accessible without passing through the checkout;
- passageways, blind corners and hidden alcoves;
- restrooms or changing rooms;
- high displays that conceal shoppers (and shoplifters) from view;
- crowded areas around displays of high-risk items; and
- aisles that staff cannot easily survey from one end.
Store areas at greater risk of shoplifting include, as mentioned, those with the most desirable goods. In addition, goods on the ground floor and near entrances are at greater risk of theft, because the shoplifter is in the store for less time and is thus at less risk of getting caught.