A distressing 33% spike in violent crime is sweeping through Aotearoa’s retail sector, as reported by David Johnston from the National Retail Association. The government is stepping in with legislative reforms to protect both businesses and their employees from this escalating threat.
The rising violence cases have cast a shadow of insecurity over the safety of both workers and customers. As businesses grapple with escalating financial strain, the government’s proposed reforms signal a response to this crisis. Yet, as the retail community looks for solutions, questions remain about how effective these measures will genuinely be.
Alarming Trends in Retail Crime
Retail crime is wreaking havoc on small businesses and their staff, particularly in vulnerable neighbourhoods. According to a recent report from Victim Support, the Indian business community represents 24% of aggravated robbery victims in 2023, highlighting the disproportionate effects of these crimes.
Meanwhile, data from the Australian Institute of Criminology reveals an alarming 86% increase in retail crime over the last five years, with sexual assault-related offences within retail settings rising by 72%.
Retail employees are becoming more vocal in expressing their growing fears for their safety amid a rise in violent robberies, anxiety levels soar on the job. According to the Australian Retailers Association (ARA) 49% reported having been physically assaulted or harassed while working.
The repercussions of retail crime stretch far beyond employee well-being, striking at the very heart of New Zealand’s retail economy.
Retailers are facing an estimated $1 billion annual cost as stated by Retail NZ, due to these crimes, creating significant financial strain, particularly for small businesses. Escalating insurance costs are gnawing at profit margins, while operational disruptions impede recovery efforts, threatening the viability of many local enterprises.
Government’s Legislative Response
Responding to the urgent crisis of rising retail crime, the government has announced a comprehensive package of legislative reforms designed to protect businesses and their communities.
The heart of these reforms are tougher sentencing laws specifically targeting aggravated crimes against retail operations. The new legislation will impose harsher penalties on offenders who target businesses that also serve as homes, a crucial step in safeguarding small family-run enterprises.
Additionally, the government is confronting the issue of youth exploitation in retail crime, focusing on instances where young people are coerced into illegal activities or where crimes are streamed live on social media.
Among the key measures in the proposed legislative reforms is a heightened focus on aggravating factors during sentencing. The proposed legislative reforms prioritise a greater emphasis on aggravating factors during sentencing.
The Justice Minister’s Call for Reform
Hon Paul Goldsmith has emphasised the government’s commitment to restoring public confidence in the justice system, which has been strained by the rise in crime and the perception that courts have been too lenient.
Goldsmith noted that despite the increase in criminal activity, sentences have become shorter and less frequent. His department’s goal is to see 20,000 fewer victims of violent crime by 2029, alongside a 15% reduction in serious youth offending.
The new rules will enforce cumulative sentencing for offenders already on bail or parole, ensuring that their crimes are punished individually instead of being combined for lighter sentences. Moreover, sentence discounts which previously allowed for reduced penalties based on early guilty pleas will now be limited to 40%, addressing concerns about leniency for repeat offenders.
Impact on Business Operations and Employee Safety
Retail businesses throughout New Zealand are not exempted from retail crimes including major supermarket stores or retail names like Woolworths and Foodie.
Foodstuffs, the operator of New World, PAK’nSAVE, and Four Square stores, has announced that retail crime incidents have more than doubled in the last two years. In just the first quarter of 2024, the company recorded 5,124 incidents, representing a 56% increase compared to the previous quarter.
The rising tide of retail crime poses serious challenges for small business owners, as highlighted by Integrated Security Services. The increase in criminal activity fosters a climate of fear, causing customers to steer clear of affected neighbourhoods, which in turn leads to a sharp decrease in foot traffic and sales for these local retailers.
For retail leaders, adapting to new legal changes is essential for ensuring both safety and profitability. Many retailers are already taking proactive measures by prioritising employee safety training and enhancing asset protection strategies.
It’s crucial for businesses to update their incident response protocols and build strong relationships with law enforcement to enable swift action during emergencies due to crime risks remaining high.
The 2024 Retail Worker Safety Survey conducted by Theatro Labs reveals that 40% of retail employees did not receive any training in the past year to help them manage difficult scenarios like theft and aggressive customers.
Employee safety training is increasingly becoming a top priority for retailers, who are encouraged to develop programmes that equip staff with the skills and knowledge necessary to handle potentially dangerous situations.
The HSI Blog on Retail Safety Skills Training highlights that effective safety training can prevent serious injuries and lower costs related to workplace incidents, which average around $41,353 each. This focus on training is particularly important, given that retail has the second-highest number of non-fatal workplace injuries.
According to the National Retail Federation’s 2023 National Retail Security Survey, 64% of retailers have implemented new safety measures or training programmes in response to rising crime rates.
These training programmes often include clear procedures for reporting incidents, strategies for maintaining calm during crises, and guidance on legal changes that could impact how such situations are managed.
Industry Reactions and Community Sentiment
The Indian business community, which has been hit hardest by the crime wave, expressed cautious optimism. However, reactions to the government’s initiatives have been mixed.
Leaders within this group who are not named, acknowledge the importance of the government’s efforts but remain concerned about ongoing safety issues, particularly in high-risk areas such as South Auckland. While legislative reform is a positive step, many small business owners remain sceptical about whether these measures will bring about real change on the ground.
Other retail sectors are similarly observing closely. Many stakeholders are eager to see whether the government’s reforms will be effectively enforced or remain symbolic gestures. There is widespread concern about whether courts will consistently apply the new tougher penalties or if leniency will continue to undermine the deterrent effect of sentencing.
Conclusion
Retail crimes may be on the rise, but the government’s commitment to reforming legislation around retail crime offers hope for Kiwi businesses. Retailers are already taking proactive measures, such as improving employee safety training and implementing stronger asset protection strategies.
It’s high time for retail business leaders to protect their operations and build a safer shopping environment that will attract customers back to their stores.
As leaders in the retail sector, you have the opportunity to leverage these reforms to enhance your operational resilience and restore customer confidence. We must now wait to see how the new legislative reforms will address the rising retail crimes and ensure a safe retail experience for shoppers, as well as protection for retail employees.