A new study has revealed a significant increase in retail crime across Australia, posing challenges for jewellers and the wider retail industry.
The 2024 ANZ Retail Crime Study, conducted by Griffith University’s Professor Michael Townsley, found that almost 2% of retail turnover—equivalent to $7.79 billion—was lost to various forms of retail crime in the 2024 financial year.
Escalating Trends in Retail Crime
The study identifies several key contributors to these losses, including customer theft, employee theft, fraud, and rising instances of customer aggression. Customer theft, often involving opportunistic concealment tactics, remains the most significant source of external losses. Employee theft, while less common, incurs substantial costs due to the insider knowledge typically involved.
Professor Townsley highlighted the effects of economic pressures, stating:
“Before COVID, crime was slowly rising, but when a lot of shops closed due to lockdowns, we saw a bit of a pause and crime went down. Since then, it just got picked up again, and with added cost-of-living pressures, police-recorded instances of shoplifting and employee abuse have gone through the roof.”
Economic Strain Drives Unlawful Practices
The study also uncovered an emerging trend of small businesses purchasing stolen goods, attributed to financial strain. This practice, though illegal, underscores the broader economic difficulties faced by many. Professor Townsley explained:
“Financial pressures affect all strata of society, and with more demand for cheap food, small businesses are trying to meet their customers’ demands. When cafés and restaurants are doing it tough and their cost of goods has doubled but they’re unable to double their own prices, they’re beginning to contemplate things they previously wouldn’t have thought about.”
For jewellers, this highlights the importance of maintaining vigilance and conducting due diligence within supply chains to mitigate associated risks.
Online Retail Fraud Grows
The rise of online shopping, driven in part by the pandemic, has brought with it an increase in e-commerce fraud. Methods include the use of stolen credit cards, false delivery claims, and manipulative customer service tactics, particularly during high-volume shopping periods such as Christmas or Black Friday.
Professor Townsley noted:
“Many retailers had to roll things out faster than they probably planned to, which left some vulnerabilities for a lot of merchants. Fraudsters might… create a sense of urgency saying things such as ‘Christmas is in three days’ time and my little boy is really looking forward to this trampoline,’ and retailers… will send another item.”
Jewellers face particular challenges with online fraud due to the high value of their products. Effective fraud detection systems and secure payment processes are crucial for reducing risks.
Industry Response
To address these challenges, retailers are implementing measures such as loyalty programmes, mobile apps, and enhanced identification systems. Industry initiatives and legislative efforts also aim to create safer retail environments.
Implications for Jewellers
Jewellers can mitigate these risks by staying informed about retail crime trends and adopting strong security measures for both physical stores and online operations. Collaborative efforts within the industry, along with proactive fraud prevention strategies, can help protect businesses from escalating retail crime.
