Why Most Retailers Don’t Prosecute Shoplifters and How You Can Protect Your Retail Store

Retailers are grappling with shoplifting at all levels, from petty theft to large-scale organized crime. Despite significant losses, the consequences for shoplifters often seem minimal, leaving business owners frustrated with the law enforcement process. What can they do to combat this issue effectively?

Many stores have adopted policies that prevent employees from confronting shoplifters directly. This approach shifts the responsibility to the criminal justice system, which, while important, has its limitations. So, why are more businesses not pursuing legal action against shoplifters?

In this blog, we’ll explore why many retailers avoid prosecuting shoplifters, alternative strategies they employ, and why proactive loss prevention is a smart move.

The Issues with Crime Reporting

The National Retail Federation reported $112 billion in shrink (losses) for 2022. This figure, however, encompasses more than just shoplifting; it includes employee theft, errors in inventory, and bookkeeping mistakes. Importantly, this amount reflects the retail value of stolen goods, not the actual cost to the business.

Additionally, it’s estimated that only 1 in 49 shoplifting incidents results in an arrest, translating to a catch rate of about 2%. The FBI reported around 528,000 shoplifting cases in 2021, but this number only includes those who were caught. If all incidents were reported, there could be nearly 30 million cases annually. Discrepancies in reporting add to the complexity, with variations across states and stores.

Shoplifters come from diverse backgrounds, not just juveniles; however, store owners might avoid pressing charges particularly against minors to bypass the hassle of dealing with their legal guardians, which can also lead to discrepancies in reporting.

The Challenges of Prosecuting Shoplifting Offenses

Like most issues in the world, everything isn’t simply black and white. There’s a lot of grey area when it comes to retail theft, and business owners have a lot to consider when decided whether to file charges or not.

• Cost-benefit analysis: Retailers often weigh the costs associated with prosecuting shoplifters against the value of the stolen goods. Legal fees, employee time spent in court, and potential negative publicity are factors that may outweigh the value of the stolen merchandise.

• Resource allocation: Retailers may prefer to allocate resources towards preventing future theft rather than pursuing legal action against individual shoplifters. This could involve investing in improved security measures or training for staff.

• Legal considerations: Laws and regulations regarding shoplifting prosecutions can vary by jurisdiction. Some jurisdictions have thresholds for the value of stolen goods that determine whether prosecution is feasible. Legal complexities and the burden of proof required in court can also deter retailers from pursuing cases.

• Focus on customer experience: Retailers often prioritize maintaining a positive customer experience and may prefer to handle incidents of shoplifting discreetly to avoid upsetting other customers or causing disruptions in the store.

• Safety concerns: Confronting shoplifters can pose safety risks to employees and customers. Retailers may prioritize the safety and well-being of their staff and customers over attempting to detain or prosecute shoplifters.

• Alternative approaches: Instead of prosecution, retailers may employ deterrents such as issuing trespass warnings, sharing information with other stores to prevent repeat offenses, or implementing civil recovery programs where shoplifters are fined or required to pay restitution.

• Public relations: Retailers may be concerned about negative publicity that could arise from publicly prosecuting shoplifters. They may prefer to handle such incidents quietly to avoid damaging their reputation.

The result of sweeping thefts has led to store closures and passing off the losses and inflated cost of goods down to the everyday consumer. Customers are starting to notice and are tired of footing the bill for crimes they didn’t commit. With so many factors for businesses to consider, it would be easier to push the hard part onto police departments, but that isn’t so easy.

Does the Punishment Fit the Crime?

Shoplifting laws vary significantly by state, with the punishment often dependent on the value of the stolen goods. For instance, $1,000 worth of merchandise might be considered a felony in many states, while in New Jersey, just $200 of stolen goods can be a felony.

Limited police resources and long court processes also contribute to the challenge. Shoplifting may not be prioritized amid other more heinous crimes, and proving intent to conceal or sell stolen merchandise can be complex and time-consuming. Retailers, lobbyists, and consumers are advocating for tougher penalties, especially in major cities, but changing laws takes time and may not immediately address the issue.

The Case for Proactive Asset Protection

A more effective approach might involve focusing on proactive solutions rather than waiting for issues to escalate. InVue, a leader in retail security solutions, offers products designed to prevent theft and enhance security while maintaining a pleasant shopping experience. With stolen goods often appearing on online marketplaces, strong security measures are crucial.

InVue’s products, such as electronic display alarms, Smart Lock devices, and secure stands, deter theft while allowing for an engaging store layout. Investing in these solutions can be cost-effective over time, reducing theft and minimizing the need for legal battles.

Cost-Effectiveness and Return on Investment in Retail Security

Investing in InVue products represents a proactive approach to security that can yield significant savings over time. The National Retail Federation (NRF) has provided statistics on organized retail theft, which highlight the importance of effective security measures. By reducing theft and minimizing the need for legal action, retailers can protect their bottom line and improve profitability by mitigating financial losses from stolen store merchandise.

Proactive Security as a Strategic Solution

The struggle against shoplifting is complex, with numerous factors influencing retailers’ decisions on how to respond. From the significant costs of legal actions to the varied effectiveness of law enforcement, it’s clear that addressing theft requires a multifaceted approach. However, the challenges of prosecuting shoplifters and the inconsistent application of penalties often leave retailers feeling stuck.

As retailers navigate the complexities of shoplifting and its impact, embracing proactive solutions like InVue’s can make a significant difference. These investments help protect assets, support staff, and ensure that customers enjoy a safe and pleasant shopping experience.

Ready to enhance your retail security? Discover how InVue’s innovative solutions can safeguard your merchandise and improve the customer experience. Contact InVue today to explore our range of security products tailored to your needs.