Retail theft across NSW has surged, largely driven by cost-of-living pressures.
Small businesses in the Illawarra say the sector is under strain, with major retailers bearing the brunt of the impact.
Data from the NSW Bureau of Crime Statistics and Research shows shoplifting has increased in recent years, emerging as one of the few crime categories trending upward across the state.
However, Wollongong newsagency owner Maria Colla, who has nearly three decades of experience, says the impact is not felt evenly.
“People are stealing from Woolworths and big corporations out of necessity,” Mrs Colla said.
“Cost-of-living issues have dropped the standard of living.”
After 27 years in business, she says the current economic climate stands out compared to previous downturns.
“We’ve seen a lot — the high interest rates in the 90s, the good recovery in the 2000s, the GFC in 2008, and COVID in 2020,” she said.
“But 2026, with the cost-of-living crisis, feels different. People haven’t had enough time to recover since COVID.”
She says while theft in her own store remains minimal, broader economic pressures are changing consumer behaviour.
“People don’t have the discretionary money to spend on things like lottery tickets anymore,” she said.
Research from the Pet Industry Association of Australia suggests financial strain is not only increasing theft but also shifting attitudes toward it. A recent report found many Australians are more likely to justify retail theft during periods of economic hardship, particularly when targeting large corporations.
The report also highlights how cost-of-living pressures are reshaping consumer behaviour, with households cutting back on discretionary spending while facing rising costs for essentials such as groceries, housing and insurance.
The BOCSAR data reflects a divide between metropolitan and regional areas, with retail theft increasing more sharply in major city centres while remaining relatively stable in regional areas such as the Illawarra.
Sydney based security expert Scott Taylor, from Praesidium Risk and Resilience, has defended the use of anti-theft signage by major retailers.
“I’d say to people, either stop complaining about the cost of items, let the shoplifting happen or get on and understand the reason why they’re trying to do these things. Retailers are desperate,” Mr Taylor told News.com.au.
He said the tough approach reflects a spike in shoplifting amid current cost-of-living struggles.
Despite not experiencing significant losses herself, Colla says the broader trend remains concerning for the industry. She remains optimistic, viewing the current situation as part of a broader economic cycle.
“It’s all part of the cycle, it will eventually get better,” she said.
As financial pressures continue to shape spending habits, retail theft may remain a growing issue across NSW, but in the Illawarra, small businesses appear to be weathering the storm, even as larger corporations face increasing losses.
