Businesses in the United States, including Utah, are growing ever more concerned with the effects of organized retail crime. In terms of retail theft statistics, 2022 revealed a mix of challenges and valuable insights for business owners in the Beehive State.
In this article, we’ll explore some interesting retail theft statistics from 2022 and give business owners in Utah a snapshot of the current landscape. By understanding the numbers, you can gain the valuable insight necessary to empower you to make the best decisions for your business and assets.
First, let’s talk about the current state of retail theft in Utah.
Total Retail Losses
Based on data provided by the U.S. Chamber of Commerce, it was observed that in 2022, retailers experienced significant losses totaling nearly $100 billion across the country. One of the major contributing factors to this issue was organized retail crime, or simply ORC.
Retailers in Utah specifically experienced a significant loss of approximately $588 million in annual revenue due to theft. The loss that businesses in the state have experienced has had a direct impact on their profitability and sustainability.
Per Capita Loss
It’s quite concerning to see that Utah retailers experienced an average loss of $239.91 in sales per person. This affects both businesses and the overall state economy, making it a legitimate cause for concern. While Utah’s rate of retail theft per person is 10.4% lower than the national average, this still poses a significant challenge for local businesses to navigate.
Felony Threshold
In Utah, a theft of more than $1,500’s value is classified as a felony. This means that retail theft incidents involving higher-value items could lead to more severe legal consequences for perpetrators. When business owners are thinking about their security measures, it’s important for them to be aware of this threshold.
Return Fraud
Retailers are becoming increasingly concerned about the rise in return fraud. In 2022, Utah retailers reportedly experienced a significant decline in sales revenue from return fraud, estimated at around $710 million. This type of fraud involves fraudulent returns or exchanges and can have a serious impact on a business’s bottom line.
Lost Sales Tax Revenue
The state of Utah lost out on $28.5 million in retail sales tax dollars due to theft. Beyond the obvious negative impact on businesses, this can also lead to a decrease in the funds available for essential public services.
Per Capita Sales Tax Impact
On average, each person in Utah loses about $11.64 in sales tax dollars due to theft. Though the figure is slightly below the national average (about 22.3% less, in fact), this still represents a very real setback for the state as a whole.
Protecting Your Retail Business
Regarding both local and nationwide retail theft statistics, 2022 showed how theft-based losses continue to pose a significant challenge for businesses across Utah. To better protect your business and reduce potential losses, it’s worth considering a range of comprehensive security measures. Here are a few ways to help ensure the protection of your assets and minimize risks:
Video Surveillance
Surveillance cameras are a remarkably effective way to discourage theft and identify the individuals responsible in the event of an ORC incident.
Access Control
By restricting access to sensitive areas and making sure that only individuals with proper authorization are allowed to enter secure spaces, you can better protect your most vulnerable assets from theft.
Alarm Systems
Consider installing alarm systems with the capability to notify both you and local law enforcement in the event of a break-in or any unauthorized entry.
Retail Theft Statistics, 2022 and Beyond
So there you have it: the latest news in retail theft statistics. 2022 was an insightful year, and we’re hoping to hear good news when the data for 2023 finally rolls out. In the meantime, businesses in Utah continue to face a significant challenge with retail theft, resulting in annual losses amounting to millions of dollars. With the right tools and information at your disposal, however, you can protect your business from virtually any threat.
If you’re looking to boost your security measures and minimize the chances of theft, consider PEAK Alarm your team for the job. Our specialization in personalized security solutions makes us the Mountain West’s leading experts for protecting businesses like yours.
Protect what matters most to you: Contact PEAK Alarm today.