Growing shoplifting challenges German retailers
(MENAFN) Retailers in Germany are grappling with a significant rise in shoplifting incidents, according to a study conducted by the Institute for Business Research (EHI). The study revealed that thieves pilfered goods worth €2.8 billion from stores across the country in 2023, marking a notable 15 percent increase from the previous year. The surge in thefts has been particularly pronounced in grocery stores, clothing retailers, pharmacies, and other retail sectors.
Frank Horst, the author of the study, attributed this uptick in shoplifting to several contributing factors. He pointed out that economic hardships faced by some individuals, exacerbated by high product prices, have driven some to resort to theft. Additionally, a decline in the number of skilled workers in the retail sector has inadvertently made it easier for thieves to carry out their activities, as the presence of vigilant staff serves as a deterrent.
The study identified specific product categories that are frequently targeted by shoplifters, including alcoholic beverages, tobacco products, cosmetics, razors, energy drinks, baby food, coffee, as well as meat, sausages, and cheese. While many perpetrators are not professional criminals, the study highlighted that approximately a quarter of them engage in organized, gang-like operations.
Overall, the study reported a 5 percent increase in inventory discrepancies, totaling €4.8 billion in losses in 2023. These losses encompass thefts committed by both customers and employees, as well as losses due to supply and service workers and regulatory issues such as pricing errors. The financial implications extend beyond individual retailers, with the German state estimated to lose approximately €560 million in sales tax revenues due to these inventory discrepancies.
The findings underscore the pressing challenges faced by retailers in safeguarding their inventories and revenues amidst evolving economic conditions and workforce dynamics. Addressing these issues will require concerted efforts from both businesses and policymakers to enhance security measures and support the retail sector's resilience in the face of growing threats from theft and inventory discrepancies.
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