Retail Theft Surges in Mexico, Costing Billions Annually

As the holiday shopping season approaches, with events like El Buen Fin, supermarkets and department stores in Mexico are preparing for an influx of deal-seeking customers and a surge in theft. Shoplifting by “farderos” could rise up to 50% during this period, costing companies between MX$10 billion and MX$14 billion annually, according to data from ALTO, a physical and asset protection firm.

The problem is particularly acute in states such as Jalisco, Morelos, Veracruz, Chiapas, and Oaxaca, which have reported significant increases in theft incidents this year. The organized and increasingly aggressive tactics used by these groups have become a concern, according to Mexico’s Employer Confederation (COPARMEX).

“High-demand products such as electronics, appliances, clothing, and shoes are among the most targeted, often ending up in informal markets where they are sold at a fraction of their retail price,” said Eduardo Budge, Country Manager, ALTO in Mexico. Tactics among farderos are becoming more sophisticated, with these groups often functioning like organized crime rings. Roles are designated: "falcons" monitor exits, "mules" steal goods, and guards escort them out. Videos on platforms like TikTok show instances where suspects are apprehended and forced to empty stolen items from clothing or bags.

Some thieves alter price tags days in advance using specialized machines to ensure lower prices at checkout. “In such cases, consumer protection authorities require retailers to sell items at the marked price, leading to financial losses,” Budge points out. Other methods include using counterfeit discount coupons, fake currency, and metallic-paper-lined bags to bypass anti-theft sensors.

Groups of 10 to 15 people sometimes coordinate theft, distracting security personnel to smuggle out large items unnoticed. Criminals have even started threatening store workers with violence if they do not comply or offer inside assistance, according to José de Jesús Rodríguez, President, Mexico City Chamber of Commerce. “Employees have reported being threatened, which discourages them from intervening and may lead to extortion schemes resembling ‘protection fees,’” he said. 

Theft impacts 28% of small and medium-sized enterprises (SMEs) in Mexico, reducing inventory by up to 15% and revenue by 30%, according to Alejandro Desfassiaux, president of Grupo Multisistemas de Seguridad Industrial (GSMI). Even minor thefts, often considered non-serious, can escalate to more serious crimes due to lenient penalties, he added. Current punishments for petty theft range from eight months to two years in prison, which may not effectively deter repeat offenders.

To combat theft, retailers are increasingly turning to technology, including artificial intelligence. Budge highlights AI’ roles in inventory control, which helps detect missing items, analyze price discrepancies, and identify theft patterns, experts told Expansión. “Our platform captures different modus operandi experienced by our clients, transforming data into actionable prevention strategies,” said Budge. AI tools can pinpoint vulnerable stores and peak theft times.