Retail crime continues to be a thorn in retailers’ collective side. It not only results in dwindling profits but a considerable chunk of consumers who are now simply afraid to shop in person, according to a new survey by Flock Safety and Zencity.
About one-third of consumers surveyed said they saw retail crime as a major concern, while 58% said it has made them want to shop online instead of in stores.
The numbers are even more concerning among those who had actually witnessed a retail crime in person—63% of those consumers prefer online shopping as a result.
“The fact that 1 in 3 Americans view retail crime as a serious concern, and that concern is driving shopping behavior online is a crisis for vibrant neighborhoods and commercial districts,” Zencity CSO Michael Simon told Retail Brew via email. “When retailers close their doors, everyone suffers—from employees to community members to municipal governments that rely on the tax base from these businesses.”
Oscar Arango, former VP of assets protection at Target, agreed, adding that not only did retail crime make consumers more concerned about their safety, but it also hampered the overall shopping experience.
“Shoppers who once enjoyed browsing leisurely may now feel uneasy, leading them to adopt a more transactional mindset—getting what they need quickly and leaving, rather than spending time exploring products or making impulse purchases,” he told Retail Brew via email. “Additionally, increased retail crime often results in heightened security measures, such as locked merchandise, limited store hours, or restricted access to high-value items. While these steps help prevent theft, they can also create friction in the shopping experience, frustrating consumers who value convenience and ease of access.”
Simon highlighted another key finding: Retail theft was more likely to disproportionately impact Black and Hispanic/Latino Americans as well as those under the age of 35.
More than 50% of Black and Hispanic/Latino shoppers were more inclined to be deterred from shopping in stores than white shoppers, the survey indicated. Consumers under 35 were 40% more likely than those over age 55 to report a decreased likelihood of shopping in person due to retail theft.
“It stands to reason that as these groups continue to flex their spending, that the trend of harm to retailers and community vibrancy will only get worse, unless something is done to turn the tide,” Simon said.
This report was written by Jeena Sharmaand was originally published by Retail Brew.