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Home / New Zealand

Thieving soars with recession

By Cliff Taylor
Herald on Sunday·
27 Sep, 2008 04:00 PM4 mins to read

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KEY POINTS:

Shoplifting is costing retailers up to $2 million a day as the economic downturn leads increasing numbers of people to resort to theft.

Supermarkets and retail security experts are reporting a big rise in thefts - particularly of food and alcohol. They say the recession is to blame.

"There has been a marked increase in shop theft and the number of apprehensions we have made over the past three months, which we feel is a knock-on effect of the current economic climate," said Ian Seed, national loss prevention security manager for Progressive Enterprises, which operates Foodtown, Woolworths and Countdown supermarkets.

"There is quite a variation in what is being stolen. It ranges from milk and vegetables to higher priced bottles of wine. Shop theft is a huge cost to retailers and thus the consumer."

Seed said supermarkets had "extensive measures" in place to deter would-be thieves. "These measures, which include security tags on bottles of wine, are proving to be effective. We have and will be prosecuting all of those apprehended, regardless of the value of the goods stolen."

A manager at The Warehouse in Newmarket, who did not want to be named, said people had been coming into the store and stealing socks and shoes, leaving staff to pick up the empty packets.

"They come in barefoot sometimes and leave in brand new shoes. Or they come in with stinky, old shoes and leave them behind. Also clothing. We get a hell of a lot of theft. Things are getting more and more expensive. People need things and they can't afford them, so they go out and steal."

She said it was "absolutely" linked to the recession.

Dave Norton, loss prevention manager for Foodstuffs South Island, which operates New World, Pak'N Save and Four Square supermarkets, said store owners had noticed an upsurge in theft.

"Yes, we are seeing an increase in low volume items being stolen. But it's very hard to quantify."

Norton said in the past people had targeted expensive cuts of meat and high end products. Now they were stealing things such as sausages, mince and cheese.

He said one man had taken a cooked chicken from a store and eaten it "because he was hungry".

Norton said in a case like that it was unlikely the owner would prosecute. But it was difficult to tell if people were stealing out of need, or greed.

Retailers Association spokesman Barry Halberg said shoplifting was a "huge" problem. "Shop theft costs between $1 million and $2 million a day in lost sales, a combination of theft by customers and staff."

Halberg said he had no statistics to link theft with the economic downturn but security firms working in the retail sector have no doubts.

Steve Davis, security consultant to the Retailers Association, said that hard economic times were leading to more shoplifting.

"There has definitely been a noticeable increase in thefts," he said. "Many retailers have reported they are seeing an increase. A couple of liquor store owners told me it's at an all-time high for them."

Davis estimated the level of theft was up between 5 and 7 per cent.

"It's fairly early days, I think things are going to get worse before they get better. As the economy starts to contract and budgets get squeezed, a lot of people can't afford the luxuries they used to, like booze. They don't want to give up these luxuries, so they steal them. It's not done out of need."

Kevin Dooley, from SLS Retail Theft Control, said the whole retail industry was aware of the problem.

"Certainly the word has got out that it's stepped up a level as things get tough."

Dooley said thefts were "across the board" but alcohol and food were popular items. He believed some people were getting more desperate and were willing to resort to theft.

"Absolutely. People are struggling. There is a greater confidence in how they steal a product. They are more arrogant."

Halberg said the issue had been discussed at the association's meeting last week and retailers planned to invite Auckland's regional police commander to their next meeting to be held in November.

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