Retailers saw declines in shoplifting and retail merchandise theft during 2025, but external theft, fraud and scams continued to increase, according to the “Impact of Theft & Violence 2026” report released by the National Retail Federation (NRF), the Loss Prevention Research Council (LPRC).

The report, sponsored by Sensormatic Solutions, found retailers experienced a 12.4% decrease in shoplifting incidents and an 8.1% decline in retail merchandise theft in 2025 compared with 2024. At the same time, other forms of external theft, fraud and scams increased, reflecting what the report describes as an evolving landscape of organized retail crime affecting both physical stores and digital retail environments.

“After years of rising in-store theft, retailers are beginning to see levels stabilize, driven by investments in technology and employee training to strengthen store security and improve response to these crimes,” said David Johnston, NRF vice president for asset protection and retail operations. “However, significant challenges remain as organized criminals continue to exploit vulnerabilities throughout the retail environment as seen in the rise of various fraud schemes and thefts including cargo theft, phone scams and gift card fraud.”

Retailers report shift toward fraud and organized crime

According to the report, retailers attributed the decline in shoplifting and merchandise theft in part to ongoing investments in security measures designed to deter theft and reduce losses. Those efforts included enhanced interior and exterior security systems, store- and employee-specific safety protocols and improved analysis of loss patterns to evaluate the effectiveness of security measures.

The report also found criminals are increasingly shifting toward other forms of external theft and fraud. Retailers reported increases in repeat offenders (50%), organized retail crime-related incidents (40%) and walkout or pushout theft (37%).

Fraud also continued to rise, with retailers reporting increases in phone scams (69%), loyalty fraud (51%) and gift card theft or fraud (42%).

“Trusted research is essential to understanding these threats and how they continue to evolve,” said Read Hayes, Ph.D., research scientist at the University of Florida and executive director of the Loss Prevention Research Council. “As these risks shift and shoplifting rates stabilize, the retail industry must confront the growing challenges of fraud and external theft.”

Violence prevention remains a focus

The report found retailers continue to report increases in homelessness-related disruptions and guest-related incidents.

To address workplace violence, retailers said they are investing in management training (72%), employee training (65%) and risk-intelligence technologies (61%), among other safety measures intended to protect employees and customers.

“Retailers are leveraging data and connected technologies to combat retail crime,” said Tony D’Onofrio, president of Sensormatic Solutions. “This year’s report underscores that no single company can address this challenge alone. Meaningful progress requires strong collaboration among retailers, communities and law enforcement agencies to enhance asset protection and keep employees and customers safe.”

The report also found reporting of store-related theft incidents to law enforcement remains limited. According to the survey, 63% of retailers said they report fewer than half of store-related theft incidents. The most frequently cited reasons for not reporting included low-dollar losses or incidents that do not meet felony thresholds (60%), along with concerns about a lack of law enforcement response and follow-through (54%).

Following passage of the Combating Organized Retail Crime Act in the U.S. House of Representatives, NRF called on the U.S. Senate to pass the legislation, saying it would strengthen federal coordination and provide state and local law enforcement with additional tools to identify and investigate cross-jurisdictional and transnational retail crime groups.

The survey was conducted online between February and April 2026 among senior loss prevention and security executives. Sixty-six retail companies representing 143 brands participated in the survey. Those brands accounted for $1.7 trillion in annual sales during their 2025 fiscal year, representing 31.6% of total retail sales. The survey found that 63% of participating companies employ more than 10,000 people and 38% operate at least 1,000 stores.

You can view and download a copy of the study here.