2024 Study Reveals Retail Theft Is Underreported

Overview

Quantifying retail crime – and specifically external theft – is a challenge. Crime statistics derived from police incidents are often used to estimate external theft activity, but they rarely tell the full, accurate story.

To gain additional insight into the extent of external theft and trends in retail theft activity, the Retail Industry Leaders Association (RILA) worked with Prof. Julie Hibdon of Southern Illinois University Carbondale and commissioned a comprehensive survey of RILA Asset Protection Leaders Council member retailers across the United States. The survey was designed to gather information on the extent of underreporting of external theft incidents in retail establishments.

Findings reveal a notable disparity between external thefts documented internally and those reported to law enforcement, underscoring the prevalence of underreporting within the retail sector.

Better collaboration between retailers & law enforcement is needed to ensure accurate theft data. The study examines challenges & barriers to reporting external retail theft cases.

In the report, you'll find:

• External retail theft events are increasing, but retail reporting of events to law enforcement is down.
• Very few retail theft events are reported to law enforcement. The rate reported to law enforcement has declined to about half of what it was in 2019.
• The amount of external theft recorded and reported could also vary depending on whether retailers have AP/LP in most of their stores.
  • Stores with AP/LP are likely to have better investigative capabilities and exhibit lower reporting rates because dedicated teams aggregate cases involving known repeat offenders.
• Limited resources for retailers and shortages in law enforcement staffing have constrained law enforcement's ability to investigate retail theft cases. This is ultimately viewed as a primary reason for a drop in retailer reporting.

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