According to recent research by Avery Dennison, retail theft has escalated into a pressing crisis for food retailers across the United States and the United Kingdom. The study reveals that 65% of these retailers identify theft as a significant issue, with 38% expressing heightened concern compared to last year. The survey of 300 senior retail leaders from brands operating over 200 stores shows that combating theft remains their paramount challenge, surpassing concerns such as optimizing omnichannel services, enhancing staff efficiencies, and managing supply chain disruptions.

To adapt to this urgent situation, 55% of grocers are allocating around 3% to 4% of their IT budgets specifically for theft prevention. Notably, half of the surveyed companies report an increase in their spending over the past two years. Despite this, 27% contend that their resources for tackling theft are still lacking.

Avery Dennison’s president, Francisco Melo, emphasizes the multifaceted nature of retail shrinkage, extending beyond theft to include supply chain waste and human error. Retailers are encouraged to adopt data-driven security approaches, utilizing technologies like RFID and AI-enabled cameras, which can help shift loss prevention from reactive to proactive measures.

Looking ahead, 77% of retailers plan to deploy RFID technology in the next two years, while 42% aim to integrate AI-driven surveillance solutions. This technological shift will be crucial in addressing the ongoing crisis and safeguarding retail operations in a rapidly changing landscape.