The cost of shoplifting has seen a significant increase of nearly a fifth as attacks on staff surge, despite efforts to combat the issue. The Co-operative Group revealed that the cost of crime in its stores rose by almost 20% to £40 million in the first half of the year. The member-owned mutual has spent £18 million on protective measures for staff in its food business, such as deploying body-worn cameras and fortified kiosks. However, despite these efforts, theft and fraud in its shops amounted to £39.5 million in the first half, marking a 19% increase from the previous year.
Matt Hood, the managing director of Co-op Food, highlighted the ongoing challenges, stating that four colleagues are attacked daily, a 34% increase from 2022, with 115 colleagues facing serious abuse, up 37% from two years ago. Despite the concerning statistics, Hood mentioned that the investments made in security measures have improved staff safety.
The Co-op’s chief executive, Shirine Khoury-Haq, expressed delight at the government’s intention to make shoplifting a standalone offence. She emphasised the urgency for this change to take effect as soon as possible. Despite the impact of shoplifting and escalating wage costs, the Co-op reported a return to profit in the first half of 2024, with pre-tax profits reaching £58 million, compared to losses of £33 million the previous year.
The increase in food sales by 3.2% and a rise in membership to 5.5 million contributed to a 10% growth in underlying earnings to £85 million in the retail division. The Co-op incurred an additional £39 million in wage costs due to the rise in the national living wage. The company’s focus on attracting more members through investments in pricing puts it on track to achieve eight million members by 2030.
With the return to profitability, the Co-op announced plans to open 120 new retail stores across the UK by the end of the following year. Khoury-Haq indicated that the group is open to considering acquisitions to support its growth strategy. She mentioned that the company is actively monitoring the market for potential opportunities and is prepared to pursue them.
In conclusion, despite the challenges posed by shoplifting and increasing costs, the Co-operative Group’s resilient performance underscores its commitment to enhancing security, driving growth, and expanding its presence in the retail sector.