Over 90% of retailers in New Zealand have experienced some form of retail crime in 2023 - from general shoplifting to storefront ram raids.
That’s according to a new report by the local peak body Retail NZ, which found that just 8% were not knowingly affected by retail crime.
“The aggression, violence and general crime in our shops is getting worse each day, as increasingly brazen and organised criminals are putting the public and retail employees in imminent danger,” Retail NZ CEO Carolyn Young said.
“We can no longer stand by and watch a small section in our society destroy the livelihoods of the families who literally put their lives on the line to build their retail business.”
According to NZ Police, retail crime costs local retailers over $1 billion each year. However, Retail NZ’s new report found this number is actually $2.6 billion.
Speaking on ram raid style burglaries in particular, a spokesperson for NZ Police told Ragtrader an explosion of this crime occured mid-pandemic, with youth accounting for 80% of all ram raids. This is despite youth only accounting for approximately 11% of all retail crime.
“We know social media has been identified as a contributing factor of ram raids in particular,” the spokesperson said. “This offending behaviour is usually driven by a combination of young people being exposed to a negative home environment, disengaged from schooling and their communities, the monetary gain from stealing certain goods, and the use of social media to promote their criminal offending and gain notoriety.”
Between January 2021 to October 2023, there have been 902 ram raid style burglaries on shops across New Zealand. When including petrol stations, supermarkets, other retail and commercial, the total since January 2021 is 1,560.
However, following a spike in August 2021, ram raids have trended downwards. So far in 2023, 265 ram raids have been reported, down from 421 in 2021.
“While we see some variability month on month, this is not unusual, and the numbers continue to track down."
NZ Police also report an increase in wider retail offending such as shoplifting, which has also been in part due to more recording of crime over recent years through the Auror system - a crime intelligence and loss prevention platform in NZ.
Overall, up until September this year, NZ Police reported more than 14,215 prosecutions and 1,429 youth referrals for retail-related crime in the country since December 2022. This includes destruction of property, abuse of staff and theft.
“There has been an increase in aggravated robbery (smash and grabs) and more prolific retail offending,” the NZ Police spokesperson said. “The reasons behind this offending are varied and we can’t pinpoint to one thing.
“Speculating, it could be reasons such as to support drug use, cost of living, for on sale, commissioned by gangs, boredom or notoriety.”
In response to this surge in retail crime, many local retailers are investing more in security measures.
Michael Hill has spent an incremental $5 million to protect its customers and team members from retail crime in New Zealand.
Company chair Rob Fyfe confirmed the spending lift, saying record level of retail crime has necessitated a significant increase in security counter-measures and increased stock losses.
This includes ongoing upgrades of CCTV and intrusion alarm systems across its stores.
Michael Hill has also installed fog cannons, dual pendant alarms, guarding and improved store fortification requirements across a number of its stores in New Zealand, and rolled out Mental Health First Aid Training to 32 of its retail leaders.
In another example, Briscoe Group booked an additional $1 million in security measures in 2022 as a result of this increased level of criminal activity.
“The widely reported explosion in crime against retailers is a real concern across the entire retail sector,” CFO Geoff Scowcroft said.
“Over the last two years the Group has suffered around 7 ram raids and at least another 12 significant break-ins causing substantial property damage and stock loss. There’s also an ever-increasing level of abuse and aggressive behaviour our team have to endure.”
Scowcroft also reported at least $3 million worth of product leaving the store without being paid for.
“In response, we have increased our loss prevention capital investment and accelerated the roll out of initiatives such as license plate recognition, concrete bench bollards, in-store duress buttons, monitored external cameras and upgraded internal security camera systems to name a few.
“Additional initiatives such as Facial Recognition, even though controversial, will become increasingly sought after as retailers look to protect their businesses as best they can. And when I say protect, foremost to our team who have to face this behaviour day-in day-out, their safety and wellbeing is obviously paramount.”
To combat the rise in retail crime, NZ Police have implemented the Retail Crime Prevention Programme, which funds security interventions for retailers who have been victims of ram raids or aggravated robberies.
The interventions include alarms, bollards, fog cannons, and lighting. The programme also provides prevention advice.
So far, security interventions have been completed for 735 stores across New Zealand.
“For prolific repeat retail crime such as high value theft, Police set up the National Retail Investigation Support Unit in November 2021 to target recidivist retail offenders across the country, who offend in multiple locations but who may not be identified at a local level as causing such significant harm.
“As at 23 November, the NRISU has investigated 309 offenders with 1,712 offences. This unit also works with large retailers, such as supermarkets, on security and crime prevention advice.
“Some Police districts also have local teams or operations focused on retail offending.”
Speaking on offending youth, the spokesperson said it is a complex issue which police cannot solve alone. They said the industry needs a coordinated partnership approach with agencies, community, iwi (Māori tribes), and social service providers, alongside family and individuals.
“When it comes to children and young people, the youth justice system aims to keep them out of the formal criminal justice system by addressing the causes of the offending, while at the same time holding them to account and encouraging them to take responsibility for what they've done,” the spokesperson said.
"Youth programmes Police run with partners, such as Fast Track, are holding young offenders to account and preventing further offending.
“Since December 2022, there have been 433 Fast Track referrals for 305 youth, meaning 76% of children and young people have not been referred again.
“We recognise that in order to prevent future generations of young people from harm, we need to work in a collaborative way to address the underlying causes of youth offending.”
NZ Police report surge in fake $50 banknotes
As NZ retailers prepare for Christmas, NZ Police have warned of a new retail crime surging: fraudulent activity through fake $50 notes.
Last week, two women faced court today over the alleged use of counterfeit banknotes in the Pukekohe area.
They were taken into custody following a string of incidents that began on September 25 at a petrol station in East Tamaki when the driver of a stolen vehicle drove off without paying for petrol.
The vehicle involved was next spotted by police on November 17 in Pukekohe, when police discovered 41 counterfeit $50 banknotes and five $5 counterfeit notes in the handbag of one of the offenders, as well as three counterfeit $50 banknotes in the glovebox.
NZ Police received a handful of complaints from retailers prior to this discovery in the wider Pukekohe area, who had been presented with forged or counterfeit banknotes.
According to police, the fakes are a bit darker in colour, while the green bird as well as the holograms within the clear window are not correct.
Police encourage anyone who has been given a counterfeit banknote to report it to police as soon as possible, and to not accept cash that is believed to be counterfeit.
If anyone has been handed a counterfeit note, put it in an envelope to avoid handling it further and get in touch with police. NZ residents can phone police on 105, or give information anonymously through Crimestoppers on 0800 555 111.
Where possible, police seek footage of persons using or attempting to use counterfeit currency. The Reserve Bank of New Zealand has advice on its website on how to spot a fake banknote or coin.
Other fraudulent activity reported included barcode swaps, pre-made phone calls, and self-serve checkout scams. More information on these can be found on both NZ Police and Retail NZ websites.