Retail crimes in New Zealand are costing $2.6 billion annually according to research from Retail NZ – with 92 per cent of retailers disclosing they have encountered such incidents in the 12 months to August.
The cost calculation includes well-being costs that result from the impact of crime on retail workers, the direct costs of crime and loss prevention, and the cost of stock losses.
The report says the cost of stolen goods accounts for around 53 per cent of the cost of retail crime ($1.4 billion) with direct costs of loss prevention (minus any reimbursements) 44 per cent ($1.1 billion)
The survey is based on 297 responses from participants, many of them operating multiple stores, and includes members of Retail NZ and the New Zealand Association of Convenience Stores.
Describing its study as “sobering research” Retail NZ said a higher risk of physical injuries and even death severely affects the mental health of employees and business owners, and impacts the ability to attract new staff.
“Retailers are more often dealing with threatening, violent or just unpleasant customers, trying to steal or damage their property,” said Carolyn Young, CEO at Retail NZ.
Young asked the government to step up in combatting criminal activities and noted that organised crime groups, drug addicts, and young people seeking attention on social media are the main drivers of the rise in retail crime.
“There is a role for retailers, Retail NZ and the government to curb this rising tide of crime and call on the political parties elected to adequately resource police, unclog the court systems and create better deterrents, like the trespass laws used in the UK,” she said.
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Young explained that Retail NZ will create better partnerships with the police and relevant agencies. It will also launch sector-wide initiatives such as facial recognition and number plate technology, running campaigns for public awareness, and developing training modules for retailers.
“If we continue to stand by, the pain and the costs will keep increasing and that cost will flow onto the customers and ultimately the New Zealand economy,” said Young.
