Co-op Battles £40m Shoplifting Hit Amid Retail Crime Surge

Co-op, one of the UK's leading retailers, has disclosed a substantial £39.5 million loss due to shoplifting in the first half of 2024, marking a 19% increase from the £33 million reported in the same period of 2023. This revelation underscores the escalating issue of retail crime that has been gaining momentum in recent years.

Matt Hood, Co-op Food's managing director, described the situation as an "ongoing epidemic" in the retail sector. The Office for National Statistics had earlier reported record-high shoplifting cases, prompting retailers to criticize law enforcement for their perceived inadequate response to in-store incidents.

Hood emphasized that organized crime and experienced shoplifters are the primary culprits, noting an increase in brazen behavior. In response, Co-op has invested £18 million this year to enhance CCTV systems and bolster security around checkout areas, prioritizing staff safety.

"It is really important for me to point out that the monetary cost is small compared to the physical and mental wellbeing of all of my store colleagues who face this issue every single day. It just fundamentally shouldn't be part of their job."

The retailer's concerns come as new legislation is set to be introduced, making it an offense to assault shop workers, with a potential maximum sentence of six months imprisonment. Additionally, the new Crime Bill will require police to investigate thefts even if the stolen goods are valued under £200.

Despite the challenges posed by shoplifting, Co-op has reported a financial turnaround. The company, which operates in food retail, funeral services, and insurance sectors, posted a pre-tax profit of £58 million for the first six months of 2024, contrasting with a £33 million loss during the same period last year.

This positive shift is attributed to an increase in membership numbers across its stores. The retailer now boasts 5.5 million members in its loyalty scheme, up from 4.6 million in the previous year. Co-op has been actively targeting younger demographics for its membership program, which offers discounted prices to participants.

Founded in 1844, Co-op has a rich history as one of the world's largest consumer cooperatives. The company has been at the forefront of ethical trading and was the first major UK retailer to sell exclusively Fairtrade bananas. With over 2,500 food stores across the UK, Co-op has a significant presence in both rural and urban communities.

Looking ahead, the retailer plans to expand its reach by opening 120 additional food stores by the end of 2025. This growth strategy aligns with Co-op's commitment to community support and local causes, a principle that has been central to its operations since its inception.

Co-op's unique democratic structure allows members to vote on key decisions, reflecting its cooperative roots. The company has also been recognized for its efforts in promoting Fairtrade, ethical sourcing, and animal welfare in its food products.

As Co-op continues to navigate the challenges of retail crime, it remains focused on its core values of ethical business practices and community engagement. The retailer's investment in digital technology and sustainable practices, including sourcing 100% renewable electricity for its operations, demonstrates its commitment to adapting to modern retail challenges while maintaining its foundational principles.