Shoplifting is increasing at an alarming rate, according to inside retail industry sources.
Inflation and lack of labor might be the causes.
The phenomenon is causing serious concern for Canadian grocers, even though the rise in food prices has boosted their financial results. In October, this increase had amounted to 11% on an annual basis. We don’t see anything that might slow down in the near future.
According to the 2023 Annual Food Price Report, the total grocery bill for a family of four is expected to reach $16,288.41, an increase of $1,065.60 from 2022.
Sylvain Charlebois, project leader and director of the Agri-Food Analytical Sciences Laboratory at Dalhousie University, explains that inflation is one of the main causes of shoplifting.
«There is a correlation between these two elements. Theft has always been a problem, but it increases more when food prices risehe says.
Mr. Charlebois notes that meat and dairy products are the two main products that are stolen at the grocery store.
The problem might worsen if the economy declines next year, as some economists predict, he warns.
«If prices continue to rise and the economy slows down, then there will be more shoplifting.»
Mr. Charlebois points out that inflation and shoplifting influence each other: when prices go up, shoplifting increases, and to compensate for losses, companies have no choice but to increase their price.
«Thefts drive up the prices, because someone has to pay for the theft. You and I pay for the flights.»
Felicia Fefer, director of corporate affairs for Walmart Canada, says the company is seeing a historic spike in shoplifting.
«Retail crime, such as theft and fire, has never been higher at Walmart Canada and across the retail industry, she says. This is very worrying for our company, our employees, our customers and the whole sector.»
Ms. Fefer says her company is putting in place measures to prevent and reduce theft so it can keep prices as low as possible while keeping employees and customers safe.
The Metro and Loblaw chains declined to comment on the situation, suggesting The Canadian Press contact the Retail Council of Canada instead. Sobeys did not even respond to interview requests.
The president of the Canadian Federation of Independent Business, Dan Kelly, adds the lack of labor to explain the increase in shoplifting.
«Crime, especially workplace crime, is a big concern for Canadian businesses, he says. They feel the effects of shoplifting more following confinement and restrictions.»
Mr. Kelly says grocery stores are having difficulty recruiting employees. When they don’t have enough employees to monitor, they become more vulnerable.
«When there are fewer employees, thieves feel less intimidated“, he says, adding that employees and customers are becoming more nervous.
More grocery stores, even smaller ones, are hiring security guards, including off-duty police officers. Many modify their environment in order to have a better view of the aisles, buy electronic monitoring devices or limit the number of customers in the store.
Retail crime has coincided with the end of the pandemic and the return of consumers, said Michelle Wasylyshen, spokesperson for the Retail Council of Canada.
She blames the economic slowdown, the growth of the concealment market and a stronger presence of organized crime.
It is difficult to assess the losses attributable to shoplifting because many cases are not reported to the authorities. According to the Retail Council of Canada, businesses lost $5 billion in 2019.
Ms. Wasylyshen mentioned that the Council does not collect data to establish a link between inflation and shoplifting. “Flights tend to grow during economic downturns.»
Shoplifting isn’t the only crime disrupting businesses. “Break-ins, armed robberies, violent events are more numerous than in previous years“says Ms. Wasylyshen.
Sharif Hassan, The Canadian Press
