Industry insiders say shoplifting has risen to alarming levels across Canada, citing inflation and labor shortages as key factors behind the increase.
The increase has also raised concerns among Canadian grocers, as rising food prices help their bottom lines. grocery prices They were up 11 percent year-to-date in October and are not expected to ease any time soon. According to the most recent edition of Canada’s Food Prices Report, the total cost of groceries for a family of four is expected to be $1,065 higher than this year.
Inflation in food prices is one of the main drivers that prompts more people to steal, says Sylvain Charlebois, senior director of the Agri-Food Analytics Lab at Dalhousie University in Halifax.
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“Absolutely there is a connection between the two. Theft is a persistent issue. But the intensity really increases when food prices go up,” he said, noting that meat and dairy products are the top two stolen items.
He warned that the problem could worsen if the economy slows next year, as some economists are suggesting.
“If you see both food prices go up and … the economy slows down, combined you basically see even more stuff.”
Charlebois said that inflation and grocery theft are influencing each other, meaning that when prices go up, shoplifting goes up, and to make up for the loss, businesses have no choice but to raise prices further. There is no option.
“The cost of theft will be higher to everyone because someone has to pay for that (stolen) food,” he said. “You and I pay for theft.”
Felicia Pfeifer, corporate affairs manager at Walmart Canada, said the retail giant has seen a historic increase in thefts.
“Sadly, retail crime including theft and arson is historically high at Walmart Canada and throughout the retail industry,” she said.
“This is very important to our business, our partners, our customers and the industry.”
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Pfeffer said the company is implementing measures to prevent and reduce piracy to keep costs down and keep its employees and customers safe.
Both Metro and Loblaw declined to comment on the matter, referring The Canadian Press to the Retail Council of Canada. Soby’s did not respond to a request for comment.
Dan Kelly, president of the Canadian Federation of Independent Business, said labor shortages are also contributing to the increase in shoplifting.
“There is a lot of concern right now about crime in Canadian businesses and crime in Canadian workplaces,” he said. “Shopping is definitely being felt more especially as we come out of lockdown and restrictions.”
Kelly said some grocers are struggling to recruit new employees, and businesses may be in a vulnerable position when they don’t have enough staff to conduct physical surveillance.
“If you have fewer people at the storefront than you know if you have a person deep in the business at the back cash desk,” he said, “it makes the business a robbery target.
“Less people on the floor … makes shoppers feel a little less intimidated to go in and pick something up,” he said, adding that employees and customers alike feel more “intimidated and nervous” walking into stores.
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As a result, more retail stores, even smaller ones, are hiring security guards, including off-duty police officers. They are also taking other steps such as retrofitting stores to ensure they have clear visibilities within the business, using more electronic monitoring technology, and limiting the number of people in the store so that they can provide one-to-one service.
As customers who shop more online during the pandemic return to stores, says Michelle Vasilshein, spokeswoman for the Retail Council of Canada, an increase in retail crime has been seen across Canada.
She pointed to the economic downturn, a growing resale market for stolen goods, and a rise in organized crime as other factors behind the increase.
While it is difficult to know the exact impact of theft on local businesses because most crimes go unreported, council estimates show that retail crime cost Canada $5 billion in 2019.
Vasilshein said the council is not collecting data on whether there is a correlation between inflation and shoplifting, but “thefts tend to increase during economic downturns.”
“We also know that break-ins, armed robberies, and physical and especially violent incidents are higher than in previous years,” she said.
Vasilshein said that greeting customers as they acknowledge their presence and removing surplus inventory from the store floor can be an effective loss prevention strategy for stores.
This report by The Canadian Press was first published on December 17, 2022.
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