Co-op sees shoplifting costs rise by almost a fifth – The Irish News

The Co-operative Group has exposed the growing impact of shoplifting, saying the cost of crime in its stores rose by almost a fifth to £40m in the first half of the year alone.

The member-owned mutual insurance company has spent £18m so far this year on measures to protect food workers, including the introduction of body cameras and reinforced kiosks.

But despite this, the company suffered a £39.5m loss due to theft and fraud in its stores in the first half of the year – a 19% increase on a year earlier – even as it stepped up campaigning on the issue.

Matt Hood, chief executive of Co-op Food, told the PA news agency: “It’s not going away.

“The reality is that every day four of our colleagues are being assaulted, a 34% increase on 2022, and it is terrifying that another 115 of my colleagues will be seriously assaulted, a 37% increase on two years ago.”

But he added: “The investments we are making are working – our colleagues feel safer and we are making them safer.”

Co-op director Shirine Khoury-Haq said she was pleased that the government plans to change the law to make shoplifting a standalone offence, but the group said the law should come into effect “as soon as possible”.

In the year to March 2024, shoplifting reached a 20-year high, with 443,995 offences recorded by police in England and Wales.

The most recent figures on the outcomes of registered crimes show that of the 436,171 cases of shoplifting that year, 71,741 resulted in a criminal charge.

Retailers are warning that some smaller stores are buying stolen goods from professional shoplifters who steal to order for criminal gangs to fund their addiction problems.

The Association of Convenience Stores (ACS) said its members reported “numerous” and “very blatant and direct” incidents of shoplifting, with meat, cheese and alcohol products being targeted.

Co-op said the group returned to profit in the first half of 2024 despite the impact of retail crime.

The retail-to-funeral company reported a pre-tax profit of £58m for the first six months of 2024, compared with a loss of £33m a year ago. The company said the stronger balance sheet would allow it to expand with new stores and potential acquisitions.

Grocery sales rose 3.2% across all stores, while membership grew by a fifth to 5.5 million, driving a 10% increase in the division’s underlying profit to £85m.

Co-op’s half-year results showed wage costs rose by £39m as the company raised wages to match the national minimum wage increase of 9.8% in April.

However, performance has been positively impacted by rising membership, with £55 million invested in prizes, putting the organisation on track to reach its target of eight million members by 2030.

Now that the group is making profits again, it has plans to open a further 120 new stores in the UK by the end of next year.

Ms Khoury-Haq said the group will also consider acquisitions as it grows.

She told PA: “All our options are open.

“We continue to scan the market and if a good opportunity arises, we will look at it very critically.

“I am pleased that after two years of my term we are able to do that.”