The current economic downturn has negatively afflicted shoppers and businesses alike, and in the process has produced some ugly side-effects. The shortage of discretionary cash has led to a cultivation of the black market in Ireland which itself has fed the growth of retail crime across the country.
A recent report by Retail Ireland exposed the full extent of this problem; crime now costs retailers in Ireland an estimated €500 million every year. Of the retailers surveyed for the report, over half had experienced an increase in crime of some form or other and a shocking 80% claimed to have been victims of shoplifting.
“It is shocking but not surprising,” Retail Ireland Director Stephen Lynam told Franchise Direct in reaction to the report. “Retail crime has been increasing in the last number of years, but nevertheless we didn’t think the problem was as bad as our study has shown.”
Lynam maintains that this worrying trend has risen in tandem with the black market in Ireland, itself induced by the current economic condition of the state.
“There is now a larger cohort of people willing to buy on the black market because they themselves have lost their own jobs or taken a hit in their take-home pay,” he says. “Because the demand for the black market has grown, the criminal fraternity need to source those products and the easiest way to go into a legitimate retailer and steal.”
Like all retailers, franchises have been hit by the resurgence of retail crime in Ireland. One such company is Cash Encounters. Director Noel Hancock laments the impact retail crime has had, as well as the increasing boldness of the criminals.
“We’ve seen a lot of stuff walk out the door,” he admits. “Even to the extent where a lot of our shops keep stuff in glass cabinets. They’re even breaking into glass cabinets while they’re in the shops.”
Theft like this has forced the franchisor to take a number of proactive steps to alleviate the impact of crime. These include CCTV installation at outlets and the provision of locked cabinets in which to display merchandise beyond the prying hands of shoplifters. Hancock maintains that the former has proved particularly effective in deterring criminals.
“CCTV plays a major role. By capturing the culprits on CCTV it enables us to take the matter further. I’d advise anyone to make the investment [of getting CCTV] and if they’re going to do it, get a proper system.”
Lynam also insists that there are a number of simple measures retailers (including franchisees) can take in order to keep their businesses safe and deter thieves, such as familiarising themselves with the Gardaí’s Theft from Shops Prevention & Reduction Strategy (available on their website), which outlines the various steps the Gardaí are taking in conjunction with Ireland’s retail community in order to reduce crime. Cultivating good relations with the local Gardaí is also paramount. In instances of shoplifting – regardless of how small – the retailer should always notify the Gardaí, otherwise they will not know that the retailers is being targeted and not be able to take preventive action. The Gardaí and neighbouring businesses should also be informed if known offenders frequent the area, even if they have not actually attempted a robbery.
Another important measure is to ensure that the store itself is not thief-friendly. This largely boils down to issues of layout. For instance, expensive and enticing items should be situated behind the counter rather than close to the door. It is paramount, however, that the franchisee should consider their personal safety first at all times and under no circumstances attempt to apprehend a criminal.