The Co-op has put GPS tracking devices into packs of sausages in a renewed trial against shoplifting, the latest measure in what retailers describe as a continuing UK retail crime problem. The story is the visible tip of a much larger issue. British Retail Consortium figures put the total cost of retail theft and crime in the latest available year at billions of pounds, with retailers stating that most of that cost is ultimately recovered through prices, insurance premiums and the closure of unprofitable stores. This guide explains how the economics work and what the official data actually shows.
TL;DR
UK police recorded shoplifting offences rose to record levels in the latest reporting year, according to Office for National Statistics crime survey data. The British Retail Consortium estimates the cost of theft to retailers reached billions of pounds in 2022/23. The Co-op alone reported retail crime cost it tens of millions in the first half of one recent year. Costs are passed on through prices, store closures, higher security spending and increased insurance premiums. Sussex Police is piloting court-ordered GPS tags on repeat offenders, banning them from designated retail areas, with the most prolific 10 per cent of offenders estimated to be responsible for up to 70 per cent of store thefts.
Last reviewed: 23 May 2026
What the official data shows
The Office for National Statistics publishes police recorded crime statistics quarterly. Shoplifting offences recorded by the police in England and Wales have risen sharply over recent reporting years, reaching multi-decade highs. ONS notes that police recorded shoplifting is sensitive to reporting practice and is generally regarded as understating the true number of incidents, because many retailers do not report low-value thefts.
The Crime Survey for England and Wales, which interviews households, captures a different picture and does not specifically cover retail theft. Industry surveys, principally from the British Retail Consortium, are therefore the main source of estimates on the total scale of the problem in retail settings.
How retailers say the cost reaches consumers
Retail margins in UK food are thin. Tesco, J Sainsbury and the Co-op all operate with operating margins in the low single digits. A material increase in shrinkage, the industry term for stock loss from theft, damage and error, has to be absorbed somewhere. Three main channels are visible in published company data.
The first is direct pricing. Higher shrinkage in a category, such as fresh meat or alcohol, contributes to the cost base for that category and is one factor that retailers consider in pricing decisions. The second is security spending. The Co-op said it had spent £18 million on retail crime in the first half of a recent year, on top of £200 million in earlier years, on fortified kiosks, body-worn cameras and additional security staff. That cost has to be funded somehow. The third is insurance. Retailers buy stock loss and business interruption cover, and premiums respond to claims experience.
The Sussex GPS tagging pilot
Sussex Police, working with the county's Police and Crime Commissioner Katy Bourne, has secured what are described as the first court-imposed Criminal Behaviour Orders requiring repeat shoplifters to wear a GPS tag with an exclusion zone around a named Co-op store. The orders were imposed on two convicted offenders. The aim is to test whether technology-based exclusion produces meaningful behaviour change for the small number of highly prolific offenders who account for a disproportionate share of retail crime.
Police estimate that the most prolific 10 per cent of shoplifters account for around 70 per cent of recorded offences. The pilot is being watched closely as a potential template for wider rollout.
What this means for grocery prices
It is difficult to isolate the price impact of shoplifting from the many other inflationary pressures on grocery prices, including energy costs, wage inflation, supply chain costs, currency and packaging. The Bank of England publishes consumer price inflation data monthly and breaks down food inflation separately. Food inflation in the UK has run above headline CPI for several consecutive years.
Industry analysis suggests that even a one per cent rise in shrinkage on a typical supermarket's cost base translates into a small but non-trivial uplift in shelf prices over time, with the impact felt most strongly on commonly-targeted categories such as fresh meat, alcohol, baby formula and personal care.
Home insurance and contents cover
Household contents insurance is not directly affected by retail shoplifting, but the wider rise in property-related claims, including residential burglary, does feed into premiums. The Association of British Insurers publishes annual data on average claims and premium levels. Anyone reviewing home insurance can check that single-item limits are sufficient for valuables, that accidental damage is included where useful, and that the sum insured for contents has kept up with replacement cost inflation.
What the new offence in the Crime and Policing Bill does
The current government has committed to introducing a standalone offence of assault against retail workers and to removing the so-called £200 shoplifting threshold introduced under earlier policy. The threshold did not mean theft under £200 was legal; it directed police away from automatic prosecution in low-value cases. The change is intended to encourage more consistent police response across forces. Final timing depends on the passage of the relevant legislation.
Disclaimer
This article is general information on UK retail crime and household budget impact. It is not legal advice. Specific home insurance decisions should be based on individual circumstances and policy terms. For broader UK finance content, see Kaeltripton's explore index.
Frequently asked questions
How big is the UK shoplifting problem?
Office for National Statistics police recorded data shows shoplifting offences at multi-decade highs in recent reporting years. British Retail Consortium industry estimates put the total cost of customer theft at over £2 billion per year, with the wider cost of retail crime when security spending is included running into the billions.
Does shoplifting actually push up grocery prices?
Industry analysis suggests yes, although the effect is small relative to other pressures such as energy and wage inflation. Categories most affected by theft tend to see proportionally higher pricing responses, including fresh meat, alcohol and infant formula.
What is the £200 shoplifting threshold?
A 2014 policy that classified theft from a shop where the goods were worth £200 or less as a summary-only offence and directed police away from automatic prosecution. The current government has committed to removing the threshold, but the underlying offence of theft remains available in all cases.
Are there new powers for police?
Sussex Police is piloting court-imposed GPS tagging on prolific shoplifters under existing Criminal Behaviour Order powers. The current Crime and Policing Bill also proposes a standalone offence of assaulting a retail worker.
Does my home contents insurance cover theft outside the home?
Some policies include personal belongings cover for items taken away from the home, sometimes as standard and sometimes as an add-on. Check the policy schedule for single-item limits and whether high-value items need to be specified.
Why are GPS trackers being put in sausages?
Sausages and other fresh meat are among the most commonly stolen supermarket items because they are high value relative to weight and easy to resell. GPS-enabled cases allow the retailer to track stolen packs after they leave the store and have appeared on multiple high-shrinkage categories.
What can I do as a customer if I witness shoplifting?
The Home Office and police forces advise customers not to intervene physically. Report the incident to a member of staff or, where serious, call 101 for non-emergency police or 999 if there is a threat of violence.
How we verified this
This article draws on Office for National Statistics police recorded crime data, British Retail Consortium annual crime reports, Home Office publications on retail crime and the Crime and Policing Bill, Bank of England consumer price inflation data, Association of British Insurers premium and claims statistics, and published company statements from Co-op Group.
