A national snapshot of rising threats, real impacts, and urgent action required

Retail crime in Canada has escalated into a national crisis, impacting profitability, employee safety, and consumer trust.

Even with investments in security measures and technology, retailers are struggling to contain crime levels. Many are limiting store hours, locking high-theft products, and even closing locations in high-crime areas. Without urgent intervention from government and law enforcement in Canada, the situation will worsen, impacting communities, retail jobs, and consumer safety.

To shed light on the state of retail crime in Canada, RCC partnered with the Loss Prevention Research Council (LPRC) on a survey of retail loss prevention professionals representing over 20,000 locations and $68 billion in sales—more than 11% of Canada’s $600 billion retail market.

The resulting report – Retail Crime in Canada: The Hidden Crisis Impacting Business, Communities and Safety – provides a comprehensive analysis of the financial and operational impact of retail crime.

The information gathered exposes the rapid evolution of organized retail crime (ORC), its financial strain on retailers, and critical gaps in law enforcement response.

–Rui Rodrigues, Executive Advisor, Loss Prevention and Risk Management

Key findings

Retail Crime is More than Just Shoplifting—It’s a Safety Crisis

  • 76.2% of retailers report increased violence during theft incidents
  • Retailers are pulling out of high-crime areas. Many are rethinking store layouts, increasing security budgets, and limiting product availability.
  • 121 weapons were seized in RCC-led retail blitz operations across Canada in 2024
  • Repeat offenders account for 17.7% of arrests

Shrink Has Doubled to $9 Billion

Shrink now accounts for 1.5% of total retail sales in Canada, doubling from $5 billion in 2018 to $9 billion today

Losses for Canadian retailers are in line with U.S. shrink levels (1.6% in 2023)

Canada’s Legal System is Failing to Keep Up

illustration of law books, gavel, paperwork, and canadian flag behind
  • Crown prosecutors frequently decline to pursue charges, frustrating loss prevention teams
  • However, 95.2% support greater Organized Retail Crime (ORC) legislation, with respondents emphasizing the need for stronger penalties and legal tools to deter retail crime and support law enforcement
  • Judges hesitate to convict for retail crimes, even with strong evidence
  • Repeat offenders are often arrested and released the same day

Limited Spend on Loss Prevention in Canada

Retailers report spending approximately 1% of sales on their Loss Prevention programs

Guards, equipment and technology are the most utilized solutions for addressing “shrink” and retail crime

41.7% are increasing budgets for AI surveillance, RFID tracking, and facial recognition

Next Steps and Calls to Action

  • Make crime prevention a C-Suite priority. Align security investments with the growing threat level.
  • Demand legal reform. Advocate for a national Organized Retail Crime Act with stronger penalties and policy changes.
  • Standardize retail crime tracking. A unified model will improve benchmarking, collaboration, and advocacy.
  • Invest in proactive security solutions. Retailers must expand AI surveillance, staff training, and ORC investigations to stay ahead.
  • Strengthen public-private collaboration. Law enforcement and policymakers must treat retail crime as an urgent economic and safety issue.