Iceland Launches Unusual Reward Scheme for Shoppers Who Report Shoplifters

Iceland, which loses an estimated £20 million annually to shoplifters, has decided to take matters into its own hands.

Supermarket chain Iceland has unveiled a controversial new initiative aimed at tackling the UK’s growing shoplifting crisis, offering customers a small financial incentive to report thefts in progress.

Shoplifting at record levels across the UK

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Retail theft has reached alarming levels in Britain, with the Office for National Statistics reporting a 20 percent rise in shoplifting offences in the year to March 2025. Police recorded 530,643 incidents, up from 444,022 the previous year — the highest figure since records began in 2002-03.

The surge has prompted government promises to deploy thousands of additional neighbourhood police officers by spring 2026. But while policing measures develop, retailers are left struggling with soaring losses.

Iceland, which loses an estimated £20 million annually to shoplifters, has decided to take matters into its own hands.

Customers enlisted as “extra eyes” in stores

Richard Walker, Iceland’s executive chairman, revealed the supermarket will now reward vigilant shoppers with £1 on their Iceland Bonus Card if they alert staff to theft as it happens.

Importantly, customers won’t need to ensure an arrest is made for the reward to be granted — simply reporting suspicious behaviour to staff is enough.

Walker explained the reasoning in an interview with the BBC: “We’re encouraging our loyal customers to help sound the alarm, and if they do help to catch a shoplifter, we’ll top up their Bonus Card to spend in store.”

He also defended the move on Channel 5 News, saying: “Some people see this as a victimless crime, it is not. It’s a cost to the business, to the hours we pay our colleagues, and it involves intimidation and violence. We’d like customers to help us lower our prices even more by pointing out shoplifters.”

Shoplifting at record levels across the UK

Shoplifting at record levels across the UKUnsplash
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A delicate balance between safety and deterrence

While the scheme may raise eyebrows for effectively turning shoppers into informants, Iceland has made it clear that safety comes first. Customers are being urged not to intervene directly with shoplifters but simply provide staff with a description or alert them to the incident.

Walker stressed that intimidation and aggression are often part of retail theft, and the supermarket does not want members of the public put at risk.

Moreover, psychologists like Dr. Will Cupchik, a renowned expert in the field of shoplifting and author of 'Why Honest People Shoplift or Commit Other Acts of Theft', argue that many people shoplift as a response to emotional or psychological stress. He found that many of his clients started shoplifting following a stressful life event. This suggests that some people use shoplifting as a maladaptive coping mechanism, a way to regain control or express unspoken emotions. (source)

Customers enlisted as “extra eyes” in stores

Customers enlisted as “extra eyes” in storesUnsplash

Retail theft hitting multiple sectors

The problem extends far beyond supermarkets. Pharmacies, in particular, have been heavily targeted. A recent survey revealed that nine out of ten have suffered theft and increasing levels of abuse toward staff.

Victims Minister Alex Davies-Jones acknowledged the growing problem in an interview on BBC Radio 4, admitting shoplifting has been getting “out of hand.” She added that while responsibility should not fall solely on retailers, communities also need to remain vigilant: “It’s on all of us to be aware of what is going on in our local communities.”

“We’re encouraging our loyal customers to help sound the alarm, and if they do help to catch a shoplifter, we’ll top up their Bonus Card to spend in store.”

“We’re encouraging our loyal customers to help sound the alarm, and if they do help to catch a shoplifter, we’ll top up their Bonus Card to spend in store.”Unsplash

Understanding the Psychology Behind Shoplifting

The act of shoplifting is not just a legal issue but also a psychological one. According to a study published by the National Library of Medicine, many shoplifters are driven by the thrill and rush of adrenaline they experience when stealing. It's an impulsive behavior that can be linked to psychological issues such as kleptomania, or the inability to resist the urge to steal.

A bold but unusual step

Iceland’s initiative has already stirred debate. Supporters argue that with police stretched thin, empowering customers to help is a practical step. Critics, however, question whether a £1 incentive trivialises a serious issue — and whether it could backfire if shoppers become overzealous or mistakenly accuse innocent people.

Either way, the move highlights the lengths to which retailers are now going to protect staff, cut losses, and keep prices low for customers.

What Research Shows About Reporting Shoplifting

With regards to the tactic of offering rewards to customers who report shoplifters, research suggests that this may have mixed results. According to a study in the Journal of Research in Crime and Delinquency, while rewards can motivate people to report crimes, they can also lead to false accusations and an atmosphere of mistrust. The implication is that such a program requires careful planning and execution to prevent potential downsides.

Analysis & Alternative Approaches

In conclusion, while Iceland's initiative to involve customers in preventing shoplifting is a novel approach, it's important to consider the psychological factors at play. The motivations behind shoplifting are complex and often rooted in psychological distress. On the other hand, the provision of rewards for reporting crime must be handled delicately to avoid fostering mistrust or encouraging false accusations. As more data on the effectiveness of Iceland's program becomes available, it will be interesting to observe whether this method proves to be a viable solution to the UK's shoplifting crisis. (source1), (source2) and (source3)