Germany experiences a rise in shoplifting incidents: Could organized crime networks be implicated?
In recent times, Germany's retail sector has been grappling with significant challenges, primarily stemming from the rise in shoplifting and the escalating unemployment rate.
## The Shoplifting Epidemic
Shoplifting has reached an all-time high in Germany, with estimated losses amounting to €4.95 billion in 2024, a 3% increase from the previous year[1][3]. Of this, approximately €4.2 billion is attributed to theft, including by customers, employees, and delivery workers[1][3]. Organized crime has played a substantial role in these thefts, accounting for around one-third of the total shoplifting losses, which is about €1 billion of the €3 billion attributed to shoplifting alone[5].
Retailers have been compelled to invest more in security measures to combat shoplifting, adding to their operational costs[1]. To offset losses, retailers have increased prices, which may affect consumer purchasing power and overall sales[1]. Employees are also responsible for a significant portion of losses, amounting to €890 million[3].
The economic damage resulting from theft due to lost sales tax amounts to approximately €570mn per year[1]. The federal government loses sales tax revenue due to stolen goods, which impacts public finances and could affect government spending on public services.
## The Unemployment Conundrum
Unemployment in Germany is at the highest level since late 2020, sitting at 6.2%. The number of unemployed people in Germany is nearing the 3 million mark for the first time in a decade[2]. The German economy has contracted every other quarter since the end of 2022[10].
The total cost of all related investments in security measures was around €3.1bn in 2024[8]. Housing costs in Germany have risen to the extent that 12% of the population spent more than 40% of their income on it last year[4]. One-fifth of the people in Germany are at risk of poverty or social exclusion[6].
The report suggests that larger groups enter stores and that security and staff usually have no chance against them[7]. There is a call for legislative action to address the issue, including tougher penalties for organized and commercial shoplifting[5].
## A Call for Action
The German Retail Association has urged politicians to take significant legislative action, emphasizing the need for more severe penalties to deter organized crime groups[5]. The government has plans to improve judicial resources and digitalize processes, but more action is sought to directly address organized crime[5].
The survey was conducted by the EHI Retail Institute and collected responses from 98 companies operating more than 17,000 shops in Germany[9]. The remaining losses were due to companies' own mistakes, such as incorrect price labelling and recording and valuation errors[3].
In conclusion, the escalating issues of shoplifting and unemployment are posing significant challenges to Germany's retail sector and economy. Addressing these concerns requires concerted efforts from both the private and public sectors, as well as stricter legislation to combat organized crime.
[1] EHI Retail Institute Report, 2024 [2] Statistisches Bundesamt, 2023 [3] EHI Retail Institute Report, 2024 [4] Destatis Report, 2023 [5] German Retail Association Statement, 2024 [6] Bundesarbeitsministerium Report, 2023 [7] EHI Retail Institute Report, 2024 [8] EHI Retail Institute Report, 2024 [9] EHI Retail Institute Report, 2024 [10] Bundesbank Report, 2023
In light of escalating shoplifting and the spike in unemployment, there's a pressing need for political action to combat organized crime and strengthen laws against commercial shoplifting, which are taking a toll on Germany's retail sector and economy. The economic fallout due to stolen goods impacts public finances, potentially affecting the provision of essential services. Meanwhile, the unemployment issue, with over 3 million people affected, could have wider implications for the overall economy.
