Supermarkets including Woolworths and Coles, are turning to high-tech security following a rise in shoplifting thanks to the rising cost of living, a retail black market, and opportunities through self serve checkouts.
Paul Zahra, Australian Retail Association CEO, claimed retailers are reporting increases in the frequency and severity of retail crime this year. Store are expected to begin reporting higher rates of stock loss.
There are estimates supermarkets could lose up to $9 billion annually thanks to shoplifting, which equals 2-3% of total stock, and a 25% loss in profit.
“It has a significant impact, especially on mum-and-pop stores, which is why retailers are taking this super seriously.”
The number of shoplifting offences has increased in NSW by 40% between March 2021 and 2023.
A spokesperson for Coles said stores used technology in their security, which includes trolley locking and electronic article surveillance.
Trolley locking prevents people from leaving without paying, while cameras at Woolworth checkouts are utilising AI to check items are scanned correctly. Some products are also locked in cabinets to prevent shoplifting.
“While most of our customers do the right thing, unfortunately, a small number don’t. We know that retail crime is on the increase across many retailers, and we continue to work closely with police in this space.”
A spokesperson for Woolworths claimed the company also saw an increase in all types of retail crime.
“We have a number of initiatives that we use, both covert and overt, to help reduce retail crime and keep our team members safe in our stores.”
Craig Woolford, MST retail analyst claimed supermarkets were utilising multiple ways to prevent shoplifters.
“Shoplifting has taken off recently … and the escalation is worrying for retailers.” He also added shoppers are likely to see an increase in all forms of preventative measures.
Many self serve checkouts also use cameras to watch shoppers, while AI detects inconsistencies, or if the trolley isn’t empty upon payment.
Some trolley locking technology uses smart gates at the exit, fasten the wheels if someone tries to flee before paying.
High-value, easily pocketable items are now being placed in plastic containers or have electronic article surveillance tags that will beep at the exit. Some also utilise radio frequency identification stickers can track back to the original store when recovered.
There are also low tech solutions employed, including separate exits, and one way entrances preventing quick getaways, CCTV footage, and loss prevention officers.
Woolford claimed the increase in theft didn’t just come down to the rising cost of living, but the ability to resell stolen goods.
“There are a lot of products, like mainstream household cleaning products or high-value products like red meat, that are easily sold either on an e-commerce platform or a secondary market.”
“The real challenge is staff are rightly told not to stop shoplifters, and some of it has become quite brazen.”
Gerard Dwyer, the National Secretary of the SDA claimed retailers should be turning to workplace design inhibiting theft and customer abuse, along with law reform around customer abuse/violence.
“Shoppers should remember that retail workers are providing an essential service – ensuring you get the essentials of life to put food on the table and provide for your children.”
