Retail crime surged 15.6% last year to £1.6bn, but “dramatically” fewer incidents were reported to police, suggesting a fall in confidence in officer responses.

According to the BRC’s Retail Crime Survey 2012, the number of incidents of crime increased across all categories apart from violence against staff.

The survey gathered data directly from 44 retailers, representing 58% of the retail sector by turnover.  

Thefts from customers came top of the crime chart, representing 83% of all incidents. But it was shoplifting that also suffered the biggest fall in reporting. In 2012 just 12% of customer thefts were reported to police, compared with 27% the year before, reflecting a fall in confidence in police responses, according to the British Retail Consortium.

It is estimated the retail sector suffers two million shoplifting incidents each year, representing £200m worth of goods. Meanwhile, the average value of goods stolen in each offence has surged 28% to £109.

But E-crime accounted for 37% of the total cost of crime, making it more costly than shoplifting.

BRC director general Helen Dickinson said: “Systematic targeting of higher value goods by organised criminals is pushing up the cost of retail crime but the proportion of shoplifting incidents reported to police has plummeted to just one in eight – highlighting just how much there is to do to build retailers’ confidence in the way police forces respond.”

Dickinson said the BRC is concerned newly elected Police and Crime Commissioners may not prioritise retail crime because of the under reporting.

She added: “With the recently elected Police and Crime Commissioners (PCCs) now responsible for setting local crime-fighting plans, the BRC is concerned that such huge under-reporting means they are not getting a true picture of the scale of retail crime. That could distort their priorities.”

Almost one in 20 stores were burgled last year and the average cost of an incident trebled to £3,005 from £989 the previous year, showing more serious, organized offending is taking place.  

The survey found 28,700 retail workers suffered physical attacks, threats or verbal abuse during the year. But the number of incidents per 1,000 employees had more than halved to 11.6% compared to the previous year.

Fraud accounted for 26% of the total cost of retail crime last year. All types of fraud increased with identity fraud rising for 80% of retailers in the survey.

Meanwhile, the survey showed retailers are spending 7% more, an average of £750,000 each, on protecting staff, stock and customers.