Guest Column: Food Prices Are Rising, But So Is Grocery Store Theft

Article content

Shoplifting has apparently been on the rise in Canadian supermarkets in recent months.

Article content

It is more difficult to obtain concrete data on thefts in grocery stores, since incidents are generally not reported. Managers tend to take matters into their own hands.

But with the growing number of reports of burglaries and security guards posted in and out of grocery stores, things are likely to be more complicated than we know.

Speaking to various retailers in Montreal, Halifax, Toronto and Vancouver, and even those located in the heart of neighborhoods where crime rates are often lower than average, thefts are now a new cause for concern.

By some anecdotal estimates, the number of robberies has risen 25 to 40 percent in the last six months alone. A medium-sized grocery store can easily catch 10 to 12 thieves in a week these days.

Article content

The cost of living and the price of food are prompting some citizens to seek other ways to obtain supplies.

The most sought-after items in supermarkets include meats such as ground beef, steaks, sausages, and roasts, as well as over-the-counter cheeses, spices, and medications. Energy drinks and alcohol are also a target in provinces where beer, wines, and spirits are sold in grocery stores.

Some people have been known to steal up to $ 300 worth of products from multiple locations in a single day.

In addition, some employees may act as accomplices to internal thefts, either in the warehouse or at the back of the store even before the products are put on the shelves. On average, in Canada, each grocery store purchases between $ 3,000 and $ 4,000 worth of groceries per week.

Article content

That is, for every 500 supermarkets that open their doors every morning in Canada, a total of nine stores will liquidate their food for free that day for theft. That’s a lot of food and the associated costs are a big problem for our retailers.

Some merchants go to great lengths to prevent theft. Aside from the addition of security cameras and people at the door, hiring customer security guards also appears to be paying off. Mysterious plainclothes shoppers roam the aisles to watch customers’ every move and catch them in the act. Although expensive, this strategy still works well.

These criminals are not associated with any typical profile, since they come from all age groups and origins, which makes the task of catching them difficult.

Article content

In Canada, according to some crime experts, about half of all defendants have no criminal record. First offenders tend to be well educated, come from wealthy families, occupy stable positions and enjoy a good reputation. Many are simply unlucky.

Obviously, self-service checkouts can also facilitate theft. So it should come as no surprise that more surveillance has been added around these areas. With profit margins approaching one percent, a store’s profitability now relies heavily on increased vigilance to minimize merchandise theft.

And for those who follow the rules, which is the majority of us, we have to pay more for our food due to theft. For merchants to cover their costs, all consumers pay a premium of up to about two and a half percent for shoplifting and internal theft.

Article content

However, with online shopping, theft becomes impossible. Since the start of the pandemic, e-commerce in food has exploded. Canadians now buy more than $ 5 billion worth of food a year online. Obviously, these sales are safe from the temptation to grab products and walk away without paying. Shopkeepers know this and will encourage customers to shop online to reduce risk.

Meanwhile, food inflation still brings us unpredictable shocks and some believe that the situation could deteriorate in the coming months. Traders will need to double their vigilance. It should come as no surprise that some retailers are using new methods to deter store delinquency.

The first self-service store opened in 1916 in Memphis, Tennessee, under the name Piggly Wiggly. In the past, customers presented their shopping lists to employees, who then collected merchandise from store shelves.

So the founder had the revolutionary idea of ​​allowing customers to serve themselves.

Since then, we have been able to visit a store, see the different products and place them ourselves in our basket. For the sake of our shopkeepers, this is a privilege that should not be taken for granted.

Sylvain Charlebois is Professor and Senior Director of the Agri-Food Analysis Laboratory at Dalhousie University.