Think shoplifting only hurts big corporations? Guess again—those ‘small’ thefts pile up, costing businesses and communities way more than you think.
What exactly qualifies as shoplifting, and why is it such a critical concern for both retailers and the law?
Shoplifting is taking merchandise from a store without paying for it, whether by concealing items, tampering with price tags, or outright theft.
For individuals, it’s a criminal offense with fines and legal consequences. For businesses, it means lost revenue, increased security expenses, and a ripple effect that impacts honest customers and the economy.
In our blog, we give you a detailed explanation of legal and general definitions of shoplifting, its impact on businesses and communities, and how innovative technologies like AI are helping combat it.
Find out the hidden costs of retail theft and solutions to prevent it!
Definition of shoplifting:
Shoplifting is not just about walking out of the shop or mall with unpaid items stuffed in your bag. In fact, any of these smart acts means shoplifting:
- Concealing merchandise.
- Tampering with price tags.
- Swapping packaging.
- Carrying unpaid items out of a store.
- Consuming products before paying.
- Pocketing goods.
- Stuffing items into bags or clothing.
- Hiding products in strollers or carts.
- Disguising stolen items as purchased.
- Altering product labels.
- Bagging items without scanning.
- Sneaking items past security.
- Avoiding checkout lines.
- Faking returns or exchanges.
- Switching barcodes.
- Walking out with unpaid merchandise.
- Using distraction tactics to steal.
- Bypassing security tags or alarms.
Basically, if you’re intentionally trying to avoid paying for what you’re taking, —you’ve crossed into shoplifting territory.
Even if you don’t leave the store, simply concealing merchandise can land you in legal trouble. What is shoplifting?
It’s theft with a twist—where the offender believes they’re outsmarting everyone but, in reality, they’re not.
Is shoplifting a crime?
Yes, shoplifting is a serious crime with substantial legal consequences. Under the law, shoplifting is classified as theft and is considered a criminal offense in most areas.
The consequences of shoplifting depend on several factors, such as:
- The value of the stolen goods.
- Specific laws of the state or country where the offense occurs.
The value of the stolen goods:
- For lower-value items, shoplifting is typically charged as a misdemeanor. Penalties may include fines, community service, probation, or mandatory educational programs.
- However, for higher-value items or repeat offenses, the charges can escalate to a felony. Individuals may face substantial fines, a criminal record, and even imprisonment in these cases.
- The threshold that separates misdemeanor from felony shoplifting varies by jurisdiction.
Specific laws of the state or country where the offense occurs:
Shoplifting laws in the United States vary significantly across states, with distinctions in definitions, classifications, and penalties. Here’s an overview of how various states address shoplifting:
| State | Felony Threshold | Misdemeanor Classification | What the law states |
|---|---|---|---|
| Alabama | Over $500 | Under $500 | No separate shoplifting statute; falls under theft laws. |
| Alaska | Over $1,000 | Under $1,000 | Firearms or items taken directly from a person may elevate to felony. |
| Arizona | Over $1,000 | Under $1,000 | Theft of firearms or animals for fighting is a Class 6 felony. |
| California | Over $950 | Under $950 | Petty theft for items under $950; grand theft for over $950. |
| Kentucky | $500 – $10,000 | Under $500 | Firearms or controlled substances carry specific felony classifications. |
| Massachusetts | Over $250 | Under $250 | Felony if value exceeds $250. |
| Missouri | Over $500 | Under $500 | Vehicles, firearms, or credit cards are felonies regardless of value. |
| New York | Over $1,000 | Under $1,000 | Grand larceny thresholds increase with value or specific items like firearms. |
| Washington State | $750 – $5,000 (Class C felony) | Under $750 | Theft over $5,000 or firearms is a Class B felony |
Organized retail crime legislation:
In response to the escalating issue of organized retail theft, several U.S. states have enacted new laws to strengthen penalties and enhance enforcement.
As of November 2024, nine states have implemented such measures:
1. California: In August 2024, Governor Gavin Newsom enacted legislation to toughen penalties for organized retail theft and the resale of stolen goods. The new laws impose stricter sentences on intermediaries involved in theft rings and crack down on online marketplaces enabling the sale of stolen items.
2. New York: The state has allocated approximately $40 million to establish a law enforcement task force dedicated to combating organized retail theft. Additionally, assaulting a retail worker has been elevated to a felony offense.
3. Virginia: Legislation passed in 2023 classifies organized retail theft as a felony, with penalties including substantial fines and imprisonment. The law allows for aggregation of theft amounts across multiple incidents to reach felony thresholds.
4. Texas: The state has proposed a statewide reporting system to enhance coordination between law enforcement agencies, aiming to effectively track and address organized retail theft.
5. Washington: Collaborative efforts between law enforcement and major retailers have led to multiple arrests in organized retail theft operations, indicating a proactive approach to enforcement.Â
6. Connecticut: The state has prosecuted individuals involved in theft rings responsible for stealing significant amounts of merchandise, reflecting stringent legal actions against organized retail crime.Â
7. Minnesota: Law enforcement agencies have dismantled shoplifting rings operating across multiple states, showcasing coordinated efforts to combat organized retail theft.Â
8. Oregon: Washington County law enforcement, in partnership with retailers, has conducted operations resulting in arrests related to organized retail theft, demonstrating active enforcement measures.Â
9. Illinois: The state has implemented laws aimed at curbing organized retail crime, focusing on stricter penalties and enhanced coordination among law enforcement agencies.Â
How shoplifting impacts businesses?
Shoplifting doesn’t just hurt the store—it’s a ripple effect that impacts everyone, from the business owner to the customers.
Let’s talk numbers because this isn’t just about a few stolen candy bars. Retail theft costs businesses billions every year.
For many smaller stores, these losses can mean the difference between thriving and shutting their doors for good.
To combat shoplifting, retailers pour money into security measures—cameras, tags, alarms, and extra staff. While necessary, these costs add up fast and eat into profits.
Smaller businesses with tight margins feel the pinch even more, sometimes forcing them to cut back in other areas, like customer service or employee perks.
The bottom line? Shoplifting affects everyone. The thief might think they’re “getting away” with something, but the real cost is spread across honest customers and hardworking business owners.
Retail theft may seem like a small crime, but its impact is anything but small.
Retailers face mounting challenges in combating shoplifting, with traditional security measures often falling short against evolving theft tactics.
The financial strain and the need for real-time intervention have sparked the adoption of innovative solutions.
This is where AI-driven technology steps in, offering retailers a smarter, more proactive approach to preventing shoplifting before it happens.
How remote video monitoring and AI help businesses fight shoplifting?
Shoplifting is a constant headache for retailers. It’s sneaky, expensive, and annoyingly hard to catch at the moment. But what if you could stop theft before it even happens?
Shoplifting detection AI, a smart, privacy-friendly solution uses gesture recognition (not facial recognition—don’t worry) to identify suspicious behavior.
How Does It Work?
- AI Gesture Detection: The AI monitors for sneaky moves, like slipping items into bags, pockets, or even strollers.
- Instant Alerts: The second something shady happens, the system sends an alert to Sirix’s Security Operations Center.
- Human Review: Trained operators review the footage and decide whether it’s an honest mistake or something worth stopping.
- Action Time: If it’s an actual incident, the operators act quickly to address the issue, whether contacting on-site staff or other security measures.
The best part? It’s constantly evolving. The AI grows smarter every day, analyzing fresh data and improving its ability to detect shoplifting incidents.
 What Does It Catch?
- Backpacks, Handbags, and Strollers: The AI system identifies when people conceal items within bags or baby strollers.
- Coats and Pockets: Attempts to hide items in jackets or pockets are promptly flagged by the AI.
- On-Site Consumption: Consuming products before purchase is detected and reported by the system.
- Suspicious Behavior: Unusual actions, such as excessive glances or lingering movements, are closely monitored and flagged for review.
Conclusion:
Shoplifting is more than just a minor inconvenience—it’s a crime with far-reaching consequences.
From financial losses for businesses to legal repercussions for individuals, the impact of retail theft is significant and pervasive.
Modern advancements like AI-driven shoplifting detection offer a proactive solution, helping retailers prevent theft, protect their inventory, and reduce losses.
By understanding the severity of shoplifting and leveraging innovative technologies, businesses can safeguard their operations and maintain customer trust.
Contact us today for a customized security solution for your business!
