Illicit trade is a growing concern for local shops, with 85 per cent of retailers saying the sale of illicit products around their business has increased over the past year, states a new report released today (March 16).
The report warns that this underground market is damaging honest businesses and undermining the efforts of responsible retailers who comply with regulations.
Illicit goods commonly include tobacco, alcohol, vaping products and electrical items and these are often sold through illegal channels at prices far below those offered by legitimate retailers, according to the latest Crime Report 2026 from the Association of Convenience Stores (ACS).
Alongside illicit trade, the ACS report shows that retail crime continues to place significant pressure on convenience stores. Retailers recorded around 5.8 million incidents of shop theft, along with over 950,000 incidents of verbal abuse, over the past year, highlighting the scale of the challenge facing the sector.
The report also reveals a worrying link between theft and illegal resale markets. One in four retailers said they had noticed products stolen from their store being resold locally, suggesting that stolen goods may be feeding into illicit supply chains.
Alcohol, confectionery and meat were identified as the three most commonly stolen product categories in convenience stores.
Despite the challenges, retailers are investing heavily to protect their businesses. Convenience stores spent a record £313 million on crime prevention measures, including CCTV, security tagging, protective screens and other monitoring systems.
The report notes that the combined cost of crime and security investment effectively adds an 11p “crime tax” to every transaction made in local shops.
There has been more reporting of crime, with 64 per cent of retailers stating they are reporting more crime to the police than last year.
Association of Convenience Stores chief executive Ed Woodall said: “Convenience stores are doing everything they can to keep their colleagues and customers safe, investing in defensive measures to protect their businesses.
"The latest numbers on theft and abuse are moving slowly in the right direction, but still represent a daily battle for thousands of local shops against hardened criminals and organised gangs that are brazenly clearing entire shelves and targeting high value products to sell on elsewhere.
“Recent efforts from the Government and the police to tackle retail crime on our high streets and in our town centres are welcome, along with an increased police presence that makes the biggest difference to how safe people feel in their communities.
"We must continue this momentum when the Crime and Policing Bill comes into force and send a clear message that together, retailers, the police and the justice system will not tolerate theft.”
The launch of the 2026 ACS Crime Report comes as parliament makes final amendments to the Crime and Policing Bill, which is set to make major changes to the way that retail crime is treated by the police and the courts.
The full Crime Report is available here: https://cdn.acs.org.uk/public/ACS%20Crime%20Report%202026.pdf