Co-op Food a major high-street, U.K. retailer has reported a loss of $40 million over the first half of fiscal 2023 due to “shrinkage”.  As in the U.S., theft is the result of organized criminal activity.  The company points to relative inactivity by police agencies with less than 20 percent of cases reported resulting in indictments.  A second factor is the increased incidence of physical assaults and verbal abuse affecting the safety of employees and customers.

Despite headwinds, food deflation has allowed the company to reduce prices resulting in higher traffic and revenue, contributing to an operating profit of $50 million over the first half of 2023.