Shoplifting hits record high in Germany: Are criminal gangs behind it?
And while the overall loss is 3% more than in the previous year and a new record, the nearly €5bn is not entirely due to crime. The report estimates that approximately €4.2bn of losses are linked to theft, and the rest can be blamed on companies' own mistakes, such as incorrect price labelling, and recording and valuation errors.
The survey collected responses from 98 companies, operating more than 17,000 shops in Germany.
The report suggests that shoplifting, including organised crime, cost approximately €2.95bn to the sector last year, an increase from €2.82bn in 2023.
Companies' own employees were also behind losses of €890mn, and a loss of €370mn was attributed to theft by suppliers and service companies.
According to EHI's report, shoplifting, theft committed by customers, has been on the rise since the COVID-19 pandemic, despite police reports showing a 5% decline in reported cases in 2024.
'A total of 98% of all thefts go undetected in Germany, meaning that counting losses requires checking inventories for missing items,' the report said.
Shoplifting is increasingly controlled by organised crime
Professional theft rings have become a significant retail threat. The study estimates that, compared to last year, shoplifting linked to organised criminal activity increased by 5%.
In 2024, organised activity accounted for around one-third of all the customers' theft, or almost €1bn.
'Many retailers are certain that organised theft is becoming increasingly professional and will continue to increase,' the report said.
It added: 'Larger groups enter stores and mercilessly pack products. Security and staff usually have no chance. The unmanageable development of gang crime, its connection to large online sales platforms, and the lack of action against it are problems.'
Poverty could also fuel shoplifting
'Another challenge remains 'ordinary' customer theft, which is partly attributed to rising living costs and higher unemployment,' the report said.
Germany, the biggest economy in the EU, has been struggling with inflated energy prices and lower productivity, partly linked to the war in Ukraine and the COVID-19 pandemic.
The country's manufacturing sector is now facing major uncertainties in global trade, coupled with elevated energy prices and supply chain issues.
The ailing economy has contracted every other quarter since the end of 2022.
Housing costs rose to the extent that 12% of the population spent more than 40% of their income on it last year, according to the country's statistics office. The EU average is 8.2%.
One-fifth of the people are at risk of poverty or social exclusion, and though inflation has eased to around 2%, unemployment is at the highest level since late 2020, sitting at 6.2%, according to the Federal Employment Agency. The agency also said in its latest report that the number of unemployed people is nearing the 3 million mark for the first time in a decade.
Where does shoplifting occur the most?
Nearly €2bn worth of stolen goods were missing from food stores, and smaller supermarkets were the most targeted. Drugstores and hardware stores also saw significantly increased losses in some cases.
Meanwhile, official police records, which don't cover each case, show a 5% decline in shoplifting cases for 2024, according to Police Crime Statistics data (Polizeiliche Kriminalstatistik).
This follows two dramatic increases in 2022 and 2023 when the reported cases showed a double-digit jump each year, rising by 34.3% and 23.6% respectively. However, the survey by EHI Retail Institute said that an estimated 98% of shoplifting cases go undetected.
In 2024, retailers' damage, worth €4.2bn, also translated into losses for the federal budget.
'The economic damage resulting from theft due to lost sales tax amounts to approximately €570mn per year,' the report said, assuming that three-quarters of the stolen items are subject to a VAT rate of 19% and the remaining quarter to 7%.
Increased security budgets
Retail companies spend around 0.33% of their turnover on security measures, including staff training, camera surveillance, targeted use of store detectives, and anti-theft display units. The total cost of all related investments was around €3.1bn, bringing the total cost of theft and prevention to €7.3bn last year.
This comes down to around 1.5% of the sales prices of the average purchase, meaning that customers had to shoulder the costs, too, the study concluded.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
5 hours ago
- Euronews
Cost of living: Europe's cheapest and most expensive countries
Prices vary significantly between countries in Europe. Significant differences exist even between neighbouring countries such as Austria and Hungary — or Germany and Poland. But how can we best compare prices across Europe? And what are the most expensive and cheapest countries across the continent? Price level indices are a good way to help us understand how expensive or cheap goods and services are in each country. They compare national price levels to the EU average and are calculated using Purchasing Power Parities (PPPs). According to Eurostat, PPPs act like an artificial common currency, as they show how much people can buy with the same amount of money across countries. The results are based on price surveys covering more than 2,000 consumer goods and services, conducted across 36 European countries. How are prices compared across countries? There are several price level indices that compare the cost of different goods and services — such as food, drink, clothing, hotels, and more. In addition to these individual or group indices, there are two main indicators that show the 'overall' price level of consumer goods and services: One is actual individual consumption (AIC), which measures all goods and services actually consumed by households. It includes consumer goods and services purchased directly by households, as well as services provided by non-profit institutions. The indicator also includes services provided by the government for individual consumption such as health and education services. Another indicator is household final consumption expenditure (HFCE), which studies total spending on individual goods and services by resident households. In other words, AIC looks at what households use — including services they don't directly pay for — and HFCE shows what they spend money on. Eurostat notes that AIC is often used in international comparisons, as it captures more than the narrower concept of household consumption. Euronews has therefore used AIC figures for comparisons, although consumption data is also included in the chart. Switzerland is 3.9 times as expensive as Turkey As of 2024, out of 36 countries, Switzerland is the most expensive, with prices at 184% of the EU average — 84% higher than the average. Turkey is the cheapest, with prices at 47% of the EU average, meaning they are 53% lower than the EU average. This makes Switzerland 3.9 times as expensive as Turkey, revealing the sharp contrast in price levels across Europe. A price level above 100 means a country is more expensive than the EU average; below 100 means it's cheaper. Cheapest and most expensive countries: Bulgaria vs Luxembourg In the EU, Luxembourg is the most expensive country, with prices 51% higher than the EU average. Bulgaria and Romania are the cheapest members, at 57% of the EU average. This means Luxembourg is about 2.7 times as expensive as Bulgaria and Romania, showing a significant but smaller gap compared to the difference between Switzerland and Turkey. Ten EU countries have prices above the EU average. Denmark (143%) and Ireland (141%) follow Luxembourg as the most expensive. Among the EU's four largest economies, Germany (109%) and France (108%) are slightly above average, while Italy (98%) and Spain (91%) are below. Geographic patterns in price levels Western and Northern European countries tend to have high price levels. Switzerland, Iceland, Luxembourg, Denmark, Ireland, Norway, and Finland all show significantly above-average prices. These are generally high-income countries with strong currencies and higher living costs. All five Nordic countries— Denmark, Finland, Sweden, Norway, and Iceland — also consistently rank near the top. In contrast, Central and Eastern European countries generally have lower price levels. Romania, Bulgaria, Hungary, Poland, and the Baltic States — Latvia, Lithuania, and Estonia — are all below the EU average. These regions typically record lower labour costs. Price levels are also lower in the EU candidate countries. They included Turkey, North Macedonia, Albania, Serbia, and Bosnia and Herzegovina. Why are the EFTA countries so expensive? Two European Free Trade Association (EFTA) countries — Switzerland and Iceland —rank first and second in 2024, with Norway in sixth place. In a 2018 analysis based on 2017 figures, Lars Svennebye of the EFTA Statistical Office explained that high workforce productivity and corresponding high salaries were key factors behind the high price levels in EFTA countries. Earnings not included in price comparisons Individual or household incomes are not included in price level comparisons. 'These figures are pure price comparisons of goods and services. They do not take the level of wages, salaries or other measures of personal income into account,' Lars Svennebye told Euronews Business. This means that someone living in a country with a high price level may still be able to buy more goods and services than someone in a country with a lower price level, depending on income. Price level rankings change by categories Price levels vary significantly across different categories. For example, the price level for alcohol and tobacco in the EU was nearly three times higher in Ireland (205%), the most expensive country, than in Bulgaria (69%), the cheapest. Restaurants and hotels showed the second-largest gap. Denmark had the highest prices at 148% of the EU average, while Bulgaria again recorded the lowest, at 53%.
Fashion Network
13 hours ago
- Fashion Network
Euratex calls for greater clarity in European textile agenda
Free trade, Green Claims, and customs clearance. At a time when the international context is putting pressure on demand for textiles and clothing, the European textile industry confederation Euratex is asking Brussels for greater clarity regarding European initiatives. Euratex is making this request in conjunction with the Danish textile federation, Dansk Mode & Textil, on the occasion of the Danish presidency of the European Union. Eight issues are specifically singled out by industry representatives, who point out that current regulatory uncertainty discourages investors from investing. "Our textile companies are faced with too much uncertainty," said Euratex managing director, Dirk Vantyghem. "Although the EU cannot solve them alone, we expect the Danish Presidency to show leadership and move forward on these many urgent issues. We have no time to lose if we want to preserve the competitiveness of our industry." Euratex is asking Brussels to ensure that the future Circular Economy Act, which is supposed to harmonize green legislation in Europe, creates a genuine European market for end-of-life textiles. Euratex is also calling for an acceleration of the Waste Framework Directive, which should lay the foundations for EU-wide waste management. The textile industry is calling for an early end to the tax-free allowance for non-European parcels under 150 euros, a niche on which Shein and Temu thrive. The textile industry is also calling for clarification of the future of the Green Claims directive, which is tasked with combating greenwashing. A text which, as pointed out, is currently the subject of much confusion. The professionals are also calling for the rapid signature of the free-trade agreement with Mercosur, while calling for greater caution in ongoing discussions with India. The energy aspect has not been forgotten, with Euratex calling for progress on the Energy Union project. This text should make energy more accessible to European manufacturers. The revision of the Reach regulation on the use of chemicals is also the subject of a call for greater efficiency and coherence. The confederation points out that this is to prevent companies from relocating outside the EU.
LeMonde
20 hours ago
- LeMonde
French workers strike over reduced remote work: 'If I don't have the option, my life is completely dedicated to the company'
A breath of fresh air. When remote working became the norm during the Covid-19 pandemic, Thibault (not his real name), age 46, found a better balance between his professional and personal life. "It allowed me to see my children when they woke up in the morning and to put them to bed at night, which makes a huge difference. And the burden of looking after the children was no longer solely on my wife. If I don't have remote work, my life is entirely devoted to my company from morning to night, including the commute," said the employee of the French banking giant Société Générale, which rebranded as SG in 2023. On June 27, he was one of many who went on strike to protest the bank's announcement of reduced remote work. On Thursday, July 3, as called by unions, he, like all employees, was asked to come "on site" wearing a green ribbon to show his resolve. Forty-eight hours earlier, on Tuesday, July 1, it was at Trax, the audiovisual division of mobile network Free (founded by Xavier Niel, a private shareholder of Groupe Le Monde), where industrial action began in response to measures restricting remote work. "This will have a huge impact on my life. I've been organizing my daily life around it for more than five years," said a developer, who requested anonymity.
