Survey: Retailers feel pressured by theft, high rents, and staffing problems

Theft, rising rent costs, and staffing challenges are top-of-mind for retail professionals in 2024.

According to a new survey from NP Digital of 1,000 retail professionals across several sectors, more than half of brick-and-mortar retailers say they are concerned with theft. One out of five of those who responded yes represented the footwear, apparel, and superstore categories.

Only 10% of participants expressed “no concern at all” about theft, though smaller retailers are disproportionately affected. Nearly 85% of small businesses report being the victim of theft at least once per year.

In addition to theft, NP Digital found that rent prices are hurting brick-and-mortar retailers as well, with more than 70% of survey respondents saying they saw an increase in their brick-and-mortar rent over the last year. Nearly half of respondents said these rent increases are hurting their profits, and two-thirds said they have considered closing due to the costs. Fifty-six percent said they had begun sharing retail spaces to cut down on costs.

Although rent costs are rising, just as many businesses are choosing to stay open as those choosing to close their doors. According to the survey data, 42% will stay open, while 38% of retail businesses are choosing to shut down.

Lack of workers continues to be a challenge for large retailers and small businesses alike. More than three-quarters of retail professionals ranged from somewhat to extremely concerned about staffing. Superstores accounted for 25% of the businesses with problems filling open roles, while electronics and appliance businesses represented another 20%.

Nearly a third of all those polled reported having trouble hiring and are short-staffed. One-in-five retail operations say they can’t fill open roles. While more than half of store managers had concerns about staffing, only 37% of owners shared the same sentiments.