A Breach of Trust: Employee Collusion and Theft from Major Retailers

This chapter discusses the extent of shop theft by retail employees of major retailers and the significance of collusion with customer thieves. A survey of retailers responsible for more than 50 per cent of all UK retail trade indicated that theft by staff was thought to have a significant impact on the business, and that the effect was reinforced by staff collusion with customer thieves. ‘Staff-related’ theft was estimated to represent one half of these firms’ theft losses. It is argued that collusion tends to be under-reported by conventional crime surveys and could well be prevalent because it often carries a lower level of risk than direct theft by staff or customers on their own. A survey of 219 staff in ten stores showed that whilst the great majority of staff were thought to be honest and direct theft of cash and goods was rare, collusion was a significant problem and formed part of a social exchange process for many employees. The research finds that motivation and perceived risk may be critical determinants of the level of staff theft. It recommends that retailers spend more time focusing on the risks of detection and punishment by explaining to staff the range of methods used to combat theft by employees and showing that detection does lead to significant punishment.