Theft and fraud cost the Co-op Group nearly £40 million in just six months

25 September 2024 , 11:23

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To clamp down on stealing, Co-op began trailing AI theft detection technology. The company’s interim results also said it will open 120 new shops by the end of next year.

Crime rose sharply in Co-op shops over the last six months, with 950 offences taking place every day, the business said.

The cost of theft and fraud in Co-op’s food business rose to £39.5m in the first half of 2024 alone. Compared to the same time a year earlier, it cost 19% more, up from £33.3m.

Across the half-year period, 172,008 incidents took place, 4% more than in 2023.

In an effort to bring down stealing, Co-op began testing the use of artificial intelligence (AI) in 14 shops to detect concealed goods and alert staff members.

The technology can detect a physical assault taking place and directly alert security, requesting support, the company said.

The problem of increased stealing is not unique to Co-op, it said, as a report from the Association of Convenience Stores (ACS) showed that, while Co-op represented nearly a third of sales covered, it experienced only 6% of the crime reported.

As the cost of living crisis hit, shoplifting reached a record high with 16.7 million incidents recorded in 2023 - more than double 2022, costing retailers about £1.8bn - a record sum - according to an annual survey by industry group the British Retail Consortium (BRC).

There was also a rise in violence and abuse against shop workers which spiked to about 1,300 incidents daily in 2023, a rise of 50% from 870 the year before.

Also announced on Wednesday in its half-year interim results was the opening of 120 new shops by the end of 2025.

Thomas Brown

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