Businesses are grappling with rising costs due to increasing crime. In retail, organized retail crime (ORC) and illicit markets are driving large increases in retail shrink. Abuse and violence against employees have surged to alarming levels.
The Growing Threat of Retail Crime
Statistics Canada’s recent data paints a concerning picture: shoplifting, theft under $5,000, and assaults have increased across the country in 2023.
Key Statistics:
- The Canadian Crime Severity Index (Statistics Canada Uniform Crime Reporting) CSI increased by 2% in 2023, continuing an upward trend since 2015.
- Non-violent CSI, including property and drug offenses, rose by 3%, with significant increases in fraud (+12%) and shoplifting under $5,000 (+18%).
- Reported shoplifting increased by 48% over three years. Industry surveys suggest less than 15% of retail crime is reported, so the increase in crime is likely far worse.
Project Barcode: A Model of Collaborative Crime Prevention and Suppression
The Save Our Streets (SOS) Coalition advocates for more effective crime response. SOS retail members work with organizations like the Retail Council of Canada. Together they collaborate with law enforcement to fight this rising tide of theft and associated violence that jeopardizes business and public safety alike.
Project Barcode exemplifies a proactive stance that retailers and police forces are adopting to combat organized retail crime and improve safety in shopping districts. This initiative focuses on high-visibility operations designed to deter criminal activity in retail spaces. Originating in Vancouver, Project Barcode has since been implemented in various cities across Canada, with many cities in British Columbia taking part and yielding impressive results.
In addition to Project Barcode, RCC and SOS members take part in other local “Boost and Bust” theft suppression operations. These initiatives, whether funded by provincial grants or undertaken by municipal police within their regular operational budgets, have proven successful in fostering a safer shopping and work environment during and following the operations.
Case Study: Surrey Operation
In a recent “Boost and Bust” operation at Guildford Town Centre and Central City Mall in Surrey, BC, police arrested 46 individuals and recovered over $7,000 in stolen merchandise. These operations highlight the effectiveness of local collaborations. The Surrey RCMP North Community Response Unit (NCRU), in collaboration with the Delta Police, Metro Vancouver Transit Police, mall security, and retail loss prevention teams, conducted this operation. In addition to arrests and recovered property, police seized replica firearms and other weapons, underscoring the potential dangers associated with retail theft.
The Economic Impact of Retail Crime – “Theft Tax”
Retailers are doing their part. They invest heavily in prevention, including security guards, advanced loss prevention technologies, and comprehensive training for employees. It is important that these costs are contained as the cost of crime and countermeasures costs us all.
Losses and costs due to the unchecked crime problem create a “theft tax” of sorts on consumers who are genuinely concerned about inflation.
Key Figures:
- Canadian households pay as much as $824.57 extra annually due to retail shrink, including the part caused by theft and ORC, lost potential tax inputs, etc.
- This amounts to as much as an estimated 2.2% per transaction, adding a significant burden to consumers.
Challenges with Repeat Offenders
The issue of repeat non-violent offenders is particularly pressing. Government action is urgently needed to manage repeat offenders both violent and non-violent. Businesses cannot keep the community and the public safe from repeat offenders; this requires government resources.
The Path Forward
SOS members will keep encouraging initiatives like Project Barcode. The SOS Coalition continues to advocate for enhanced resources for law enforcement and stronger legal frameworks to address organized retail crime and repeat offenders.
As Chair of the SOS Coalition’s Research Working Group, I am proud to highlight the tangible impact of these collaborative efforts. Our message is clear: more needs to be done. Retail workers, their employers, and the public expect better outcomes. The fight against retail crime is ongoing and requires a bold commitment from the government.