special feature
multi-platform crime
Tackling
Although crime may not be first on the agenda when considering the issues currently facing the retail industry, it remains a persistent problem for businesses in 2016. Affecting both bricks-and-mortar and online retailers, retail crime is a multi-faceted problem, requiring a multi-faceted solution
T
he latest Retail Crime Survey by the British Retail Consortium (BRC), released in January this year,
revealed that the direct cost of crime to the UK retail industry was £613 million in 2014-15 – up 2% on the previous year. Whether it takes the form of theft, violence against shop staff or cyber-based threats, crime is a major drain on the retail industry, and a problem that affects independent retailers, multiples, bricks-and-mortar and online in common. There were an estimated 4.1 million crimes committed against the industry last year – and the BRC reports that the level of crime against the retail industry is in reality much higher.
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SGB-SPORTS.COM In 2014-15 the average value of an incident
of customer theft was £325, even higher than the increase reported last year. Theft of a big- ticket item can be a significant blow to a small business, and worryingly, The BRC’s survey data suggests that incidents of employee theft cost a retailer on average more than three times as much as theft by a customer. 55% of survey respondents reported seeing an increase in malicious insider activity in the last two years. Beyond the direct financial cost, retail crime can have wide-reaching consequences for businesses, their employees and their customers. Qualitative data collected by the BRC revealed that loss of staff time, distraction from business purpose and
damage to brand reputation were the most significant indirect impacts of crime. Damage to employee morale, a consequence that is often overlooked, also ranked highly. “Offending on our high streets creates negative perceptions of the local community,” said the report. “Criminals who target businesses also go on to commit other types of criminal activity.” Crimes committed in cyber space are also
increasingly having an impact on businesses of all kinds; the majority of retailers were victims of some form of cyber attack in 2014- 15. With fraud up 55% compared to 2013-14, retailers remain concerned about the capacity of law enforcement to respond effectively.
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