Co-operative Loses £40 Million in Theft Due to Rising Shoplifting in UK

The Co-operative group has spent £18 million this year in addition to the £200 million it has spent in previous years fighting retail crime.

One of the prominent food retailers in Britain, Co-operative Group has reported a significant increase in theft costs in their stores as the country suffers from an ongoing battle with shoplifting.

The Co-operative Group has exposed the effects of shoplifting as they reported that crime costs in its stores have increased to £40 million in the first half of the year from £33 million a year before.

The group reported an annual rise of 4%, with 950 crimes committed daily in its stores.

The shopping districts in the UK have been facing challenges in containing a rise in thefts, especially since the onset of a crisis related to the cost of living for younger generations.

The Office for National Statistics reports an increase in shoplifting in England and Wales by about one-third in the year ending in September 2023. The British Retail Consortium, from 2022 to 2023, states that the cost of theft has increased to £3.3 billion.

Even though inflation has fallen close to the 2% objective of the Bank of England, retailers say stealing is still a costly expense.

There have been assaults on the workers, and the new Labour government promises that assaults on shop workers will now be considered a separate crime.

The Co-Op group has spent £18 million this year in addition to the £200 million it has spent in previous years fighting retail crime. To prevent shoplifters from stealing any more cigarettes and alcohol, Co-Op groups have a built-in protected booth with undercover guards hired and qualified to stop any offenses from happening.

They have invested £18 million this year in employee safety measures in its food business, such as the introduction of body-worn cameras.

Despite this, the supermarket chain suffered losses from theft and fraud of £39.5 million in the first half of 2024, up 19% from the same period the previous year, despite increasing their measures and raising awareness to prevent these crimes.

Matt Hood, the managing director of food operations, says that even after initiating these measures, one cannot eliminate retail crimes. Currently, there are already four attacks on coworkers happening every day, up 34% from 2022, and 115 more coworkers will suffer severe maltreatment, up 37% from two years ago. The purpose of these investments was to make colleagues feel a sense of security, and it’s working. They are feeling a lot safer, he reports.

The business had previously claimed that organized crime and repeated offenders, not people stealing to make ends meet, were to blame for the increase in shoplifting. 

Shirine Khoury-Haq, the chief executive officer, expressed that she was satisfied the government has started making efforts to change the law to make shoplifting a separate crime, but the organization insisted that it needed to take effect as soon as possible.

The shop that sells funeral products declared that it generated a profit despite the damage caused by stealing and rising labor costs.

The group declared pre-tax profits of £58 million for the first half of 2024, against the losses of £33 million in the previous year. Its improved balance sheet will help it to expand to new stores and potential acquisitions.

Food sales increased by 3.2% across all its stores, which led to a 10% increase in underlying profitability in the division.

The Co-op’s findings say that the salary costs increased by £39 million since they had to raise the wages to match the increase of 9.8% in the national living wage in April.

The company gained from growing membership as it spent £55 million on pricing, which will enable it to surpass its present membership of 5.5 million and reach its 2030 target of 8 million.

By the end of 2025, the group intends to open 120 retail locations throughout the UK.