Record Shoplifting Losses in Germany

Retailers Report All-Time High in Theft-Driven Losses

Germany’s retail sector is facing an unprecedented wave of shoplifting, with estimated losses soaring to €4.95 billion in 2024, a new study by the EHI Retail Institute reveals. This marks the third consecutive year of increasing shrinkage, primarily driven by theft. The sharp rise in stolen goods, particularly from organized groups and opportunistic individuals, has triggered growing concern across the industry and renewed demands for political intervention.

Billions Lost Despite Security Investments

Out of the total loss, €4.2 billion can be directly attributed to theft. This includes €2.95 billion stolen by customers, €890 million by employees, and another €370 million by external service personnel such as delivery staff. The remainder stems from pricing errors and administrative mistakes.

Despite investing over €3.1 billion in theft prevention and internal security—covering surveillance systems, training programs, tagging systems, and staff deployment—shoplifting continues to undermine retail profits. On average, around 0.33% of retailer revenue is now funneled into security measures. These costs, coupled with the stolen goods themselves, indirectly increase retail prices by approximately 1.5% across the board.

Organized Theft on the Rise

One of the most troubling developments highlighted in the report is the 5% annual increase in organized retail crime. Roughly one-third of shoplifting losses are now caused by professional operations involving coordinated groups. Tactics range from decoys who distract staff to individuals staging collection points inside stores for later retrieval. These teams often target high-value, easy-to-hide products such as perfume, branded apparel, electronics, spirits, razors, baby formula, and tobacco.

Frank Horst, lead author of the study, warns that new retail formats may be contributing to the problem. Self-checkout stations, which are becoming increasingly common, have been linked to elevated shrinkage. Nearly half of the retailers using them report higher loss rates—some of which stem from genuine user error, while others are deliberate thefts.

The Scale of Undetected Theft

While police data suggest a decline in reported shoplifting cases, industry experts agree that this is misleading. According to EHI estimates, up to 98% of shoplifting incidents go undetected. This translates to a staggering 24.5 million cases annually, each averaging €120 in losses. As a result, inventory discrepancies often only come to light during annual audits.

The low detection rate, coupled with limited law enforcement resources and the perceived futility of filing complaints, has led many retailers to stop reporting minor thefts altogether. Even when cases are reported, three-quarters are eventually dropped due to low value or lack of evidence.

Retailers Call for Legal Reforms

The growing frustration among retailers has led to mounting calls for stronger political action. Stefan Genth, managing director of the German Retail Association (HDE), has criticized the current legal and judicial handling of theft, arguing that the system fails to effectively prosecute offenders or deter repeat offenses. The association is pushing for judicial reforms aimed at increasing penalties, especially for repeat offenders and organized criminal networks.

HDE believes that legislative inaction has contributed to Germany becoming increasingly attractive to shoplifters, especially when the majority of first-time offenders walk away without serious consequences. Although German law allows for sentences of up to five years for shoplifting, these are rarely enforced.

A Debate Over Motives and Justice

The spike in shoplifting has reignited debate among criminologists. While the EHI attributes two-thirds of thefts to opportunistic behavior, sociologists argue that many are driven by necessity. Cologne University criminologist Nicole Bögelein describes most cases as “poverty crimes,” carried out by individuals in financial distress. Her research suggests that poorer individuals are disproportionately targeted by store security, and many of those caught are unemployed or low-income.

Still, not everyone agrees with the poverty narrative. Horst believes that while economic pressure may play a role, not all shoplifters are destitute. He suggests that for some, theft may even serve as a form of protest against rising prices. Regardless of motive, the financial damage remains—and it is customers, taxpayers, and businesses that ultimately foot the bill.

Soaring Social Costs

Beyond direct retail losses, the state also loses approximately €570 million annually in unpaid sales tax on stolen items. When combined with the cost of security investments, the total economic burden from shoplifting climbs to around €7.3 billion per year.

Retail employees are also facing increasing risks. According to the EHI, verbal and physical assaults by shoplifters are rising, with one in four retailers increasing their spending on employee protection and de-escalation training. Companies like drugstore chain dm are heavily investing in both personnel development and new technologies to safeguard staff and merchandise.

Future Outlook

Despite the scale of the problem, experts remain divided on the path forward. Retailers demand legislative reforms, harsher penalties, and better support from law enforcement. Criminologists, however, warn that criminalizing minor offenses committed out of poverty may not reduce theft—and could instead overwhelm the justice system.

While the causes remain complex, one fact is clear: Germany’s retail industry is bearing the weight of a growing crisis, with consequences rippling far beyond the aisles of any single store.