Vermont is the 13th most impacted state by retail crime in America

Submitted by tim on Fri, 11/24/2023 - 04:51

Vermont Business Magazine A new Forbes Advisor report analyzed all 50 states and the District of Columbia to find which areas are the most and least affected by retail crime, and Vermont ranked as the 13th most impacted.

To determine its rankings, Forbes analyzed six metrics, including retail theft relative to population, the total value of stolen goods, and larceny-theft rates.

Highlights:

Washington state ranks as the state the most impacted by retail crime, and Wyoming is the state the least impacted.
The state with the highest average total value of stolen goods per capita ($430) is Pennsylvania.
North Dakota has the highest retail theft index rate in our study, accounting for 71% more retail crime than expected based on the state’s share of the U.S. population.
Three of the five states that are the least impacted by retail crime are located in the South, namely Mississippi, Georgia, and Alabama.
The nation’s capital (D.C.) saw the most instances of larceny-theft in 2022, averaging 2,829 instances per 100,000 residents.

Organized retail crime has become an issue for retailers nationwide, with stores such as Target saying they are closing storefronts due to theft losses and for safety precautions. The National Retail Federation reported that more retailers in America felt organized retail crime was a higher priority in 2023 (78.1%) compared to 2022 (70.7%). In addition, shoplifting statistics show that 88% of retailers say that shoplifters are at least somewhat more aggressive and violent compared to one year ago.

Forbes Advisor delved into retail theft statistics to find out what states are being most affected by retail theft overall. They also surveyed American small business owners with brick-and-mortar stores that employ up to 50 employees to find out how retail theft is affecting small businesses.

Their survey reveals that the vast majority of small business retailers nationwide have experienced theft at their stores (90%) and 83% said they believe retail theft is at least a somewhat major issue.

Key Takeaways

Washington ranks as the state the most impacted by retail crime, and Wyoming is the state the least impacted.
The state with the highest average total value of stolen goods per capita is Pennsylvania, where the total value of stolen goods is $430 per capita.
85% of small business retailers said they experience theft at least once a year, and just 5% of small business retailers report never experiencing theft.
The majority of small business retailers with a brick-and-mortar shop (52%) said the frequency of theft in 2023 increased or stayed the same compared to previous years.
Three of the five states that are the least impacted by retail crime are located in the South, namely Mississippi, Georgia and Alabama.
The majority of small business retailers (79%) said their monthly losses from theft were between $500 and $2,500, and 10% said theft losses accounted for more than $2,500.
The majority of small business retailers (56%) anticipate that their business will be affected by theft during the upcoming holiday season.
To make up for losses due to theft, most retail small business owners have increased prices (64%) and/or installed security cameras (50%).

The Effects of Retail Theft on Small Businesses in America

Opening a small business is a tough endeavor in itself, and dealing with the repercussions of theft can make the job even more difficult. Our survey results show that the majority of small business retailers in America experience theft (both internally from employees and externally from customers), and most experience it at least on a monthly basis (75%).

41% of small business retailers said the value of items stolen in 2023 has increased compared to previous years.
75% of small business retailers reported monthly losses between $500 and $2,500 due to theft.
The majority of business owners say that they would file a theft claim with their insurance (56%) and report it to authorities (53%) after an incident.
Theft mitigation is common amongst small business retailers, with 98% saying they’ve put measures in place to prevent it.
83% of respondents believe theft is at least a somewhat major issue for small business retailer owners.
The National Retail Federation reported that retailers in America saw increases in e-commerce fraud and phone scams, to solicit gift cards or cash, in the last year.

Frequency of Theft in Small Business

Theft rates in the United States can cause devastating losses for small business retailers and various business sizes tend to experience it at different frequencies, according to our survey.

Retail small business owners were most likely to experience customer theft a few times a week (21%). Experiencing customer theft weekly was the second-most common frequency (18% of respondents) and daily ranked third-most common (13% of respondents).
Only 5% of small business owners said they never experienced customer theft at their brick-and-mortar store.
Retail business owners with one to 20 employees were the most likely to experience theft on a daily basis (17%), and businesses with 21 to 30 employees were most likely to experience theft a few times a week (31%).

Internal Theft

Not only is external theft (when someone outside the business, such as a customer, steals something) an issue, but so is internal theft (when an employee steals from their company). The majority of small business retailers (58%) report that current or former employees have stolen from their business (including cash/money and/or physical products).

Just 26% of small business retailers report never experiencing internal theft.
Small business retailers with 21 to 30 employees were most likely to experience internal theft (66%), followed by businesses with one to 20 employees (63%).
Small business retailers with 41 to 50 employees were least likely to experience internal theft (30%), followed by businesses with 31 to 40 employees (29%).

Value of Stolen Items

Overall, retail small business owners in America said the value of items stolen has increased or stayed the same in 2023 compared to other years (59%).

The shoplifting statistics from our survey reveal that the majority of monthly losses are reported to average between $500 and $2,500 (75%).
Retail business owners that employ 31 to 40 employees were most likely to report monthly theft losses to be between $500 and $2,500 (90%), followed by businesses that employ 21 to 30 employees (77%).
Nearly 11% of small business retailers report monthly theft losses of over $2,500.
Retail business owners that employ one to 20 employees were most likely to report monthly theft losses to be at least $2,501 or higher (24%).

Value of Stolen Goods in 2023 Compared to Previous Years

In addition to being the most likely to experience theft on a daily basis, 17% of small business retailers that employ one to 20 employees were also the most likely to see the value of items stolen increase in 2023 compared to previous years (56%).
Small business retailers that employ 41 to 50 employees were most likely to report that the value of stolen items has decreased in 2023 compared to previous years (44%).

Theft Reporting

Reporting theft to insurance companies and authorities can be helpful, although businesses are not required to report it at all.

A slightly higher percentage of retail small business owners (56%) said they would be more likely to report theft to their insurance than to authorities (53%).
An average of 33% of business owners said they may report theft to their insurance or to authorities, depending on the circumstances.
9% of small business retailers said they wouldn’t report theft to authorities, and 6% said they wouldn’t report theft to their insurance.
Of those who said they wouldn’t report the theft to the authorities or are unsure about doing so, the majority cited the task as being too time-consuming (56.5%), followed by 56% saying they may not know who was responsible for it.
Roughly 50% of business owners said they wouldn’t report theft to authorities because they wouldn’t want the perpetrator to get in trouble, and 34% said they don’t think authorities would be helpful.
The top reason small business retailers wouldn’t report theft to their insurance was because they don’t think the value of items stolen is worth filing a claim (74%), followed by not wanting their insurance rates to go up (52%).

Measures to Prevent Theft in Small Business

Preventative measures to negate theft in America are common for small business retailers, with 98% of retail small business owners reporting having implemented some kind of anti-theft protocols.

Increasing prices (64%) and installing security cameras (50%) were the most popular measures small business retailers reported implementing to reduce theft.
Other measures include installing motion sensors on products (45%) or doing background checks on hires (43%).
While small business retailers that employ one to 20 employees were most likely to report monthly theft losses due of at least $2,501 (24%), these businesses were also more likely to report that they haven’t implemented any measures to prevent theft (7%).
Businesses that employ 41 to 50 employees were the most likely to implement several measures to avoid theft, including doing background checks on hirees, increasing prices to make up for losses, hiring additional staff to monitor shoplifting, implementing control systems (such as counting inventory regularly) and reducing store hours.

Theft During the Holiday Season

The holiday season is a popular time for shoppers to be out and about, but is the holiday season as joyous for small business retailers? Our survey revealed that the majority of small business owners said they anticipate theft during the 2023 holiday season.

56% of retail small business owners said they anticipate theft during the 2023 holiday season.
23% of small business retailers said they do not anticipate theft during the 2023 holiday season, and 17% report being unsure.
Small business retailers that employ 21 to 30 staff members were most likely to anticipate theft during the upcoming holiday season (69%), followed by businesses that employ one to 20 staff members (66%).
Small business retailer owners that employ 21 to 30 employees were least likely to anticipate theft during the upcoming holiday season (12.5%).
The U.S. Chamber of Commerce reports that 53% of small business owners say theft losses increase during the holiday season.

Areas That Are Most Impacted by Retail Theft

Retail theft is more prevalent and has a larger impact on retail businesses of all sizes in some states compared to others. According to our analysis, Washington state ranks as the state most impacted by retail crime, while Wyoming ranks as the least impacted.

Source: Forbes Advisor. The Impact Of Retail Theft On Small Businesses And States – Forbes Advisor