Retailers warn that $9 billion in losses from shoplifting is impacting productivity across the entire country.

Retailers across Australia are dealing with a surge in crime that is costing the industry an estimated $9 billion each year in stolen goods, damages, and security expenses. The growing issue has pushed industry leaders to call for it to be treated as a national productivity concern, with plans to raise it at the Treasurer’s upcoming productivity summit.

Since the COVID-19 pandemic, theft and retail-related crime have risen sharply. Businesses report increasingly brazen incidents from items concealed in clothing to coordinated group thefts, ram raids, and even armed robberies—putting both staff and operations at risk.

While larger retailers have the resources to invest heavily in security measures such as surveillance systems, security tagging, and in-store guards, smaller businesses are struggling to keep up. Industry groups argue that tackling retail crime head-on could significantly improve productivity across the sector.

The scale of the problem is substantial. Around 800,000 retail crime incidents were recorded nationwide in the past year, with a notable portion involving threats or violence. In addition, roughly 2.3% of retail inventory is lost without being sold a phenomenon widely referred to as “shrinkage.” A small group of repeat offenders is responsible for a disproportionate share of these losses.

In response, leading retail bodies are urging the federal government to implement a unified, nationwide approach to retail crime. This includes aligning laws and regulations across states, as well as introducing targeted support for small and medium-sized businesses. The goal is ambitious: reduce retail crime costs by half by 2030.

The issue has intensified alongside the cost-of-living pressures seen in recent years, with theft rates climbing significantly. Major retailers have reported noticeable increases in losses, prompting further investment in preventative technologies such as advanced CCTV systems, checkout monitoring, and anti-theft infrastructure.

Industry leaders stress that beyond the financial impact, retail crime also carries serious human and operational consequences. They argue that addressing it through coordinated policy reform and stricter enforcement could deliver meaningful benefits not just for retailers, but for the broader Australian economy.