UNIQLO Parent to Sue Shoplifters for Full Compensation

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In response to a series of shoplifting incidents involving groups of foreign nationals, Fast Retailing, the parent company of clothing giant UNIQLO, announced a new policy this month. The company will seek full compensation for damages through civil procedures against identified shoplifters.

Shoplifting has become increasingly common at retail stores across Japan, particularly drugstores. Estimated annual losses exceed ¥300 billion JPY (about $2.09 billion USD). While it remains rare for companies to pursue compensation, industry groups believe Fast Retailing's move may encourage more businesses to follow suit.

UNIQLO Shoplifting

In 2024, three Vietnamese women in their 30s and 40s were arrested by Osaka Prefectural Police for shoplifting clothing from a UNIQLO store. They reportedly said they were rewarded for stealing specific items and that the thefts helped cover their living expenses.

Investigations revealed they had traveled repeatedly between Japan and Vietnam under the direction of individuals in Vietnam. They received payments of ¥170,000 to ¥210,000 (about $1200–1500) per trip.

Their thefts were confirmed at 37 UNIQLO stores across four prefectures, including Osaka, Hyogo, and Tokyo. Total damages reached approximately ¥12.3 million. One woman said the earnings were enough to live on for nearly three months.

*A Uniqlo store in Shibuya Ward, Tokyo.*

Organized shoplifting by Vietnamese nationals has been the focus of repeated crackdowns in Japan. In February 2024, Fukuoka Prefectural Police arrested four Vietnamese men and women in connection with thefts causing an estimated ¥20 million (about $140,000) in losses at UNIQLO stores in eight prefectures. According to the National Police Agency, Vietnamese nationals have accounted for roughly 50% to 70% of foreign nationals arrested for shoplifting in recent years.

Countermeasures

Fast Retailing, which operates about 790 UNIQLO stores nationwide, announced on June 9 that it will step up its shoplifting countermeasures. The company said it will not only report cases to police and pursue criminal charges but also file civil suits.

These suits will seek to recover the cost of stolen goods and associated damages. "We will take a firm stance to create a store environment where customers can shop with peace of mind," the company emphasized.

Despite the scale of losses, few retailers currently seek compensation from shoplifters. According to the National Shoplifting Prevention Organization, a Tokyo-based NPO with around 160 member companies including Fast Retailing, estimated nationwide shoplifting losses total around ¥346 billion annually. Yet, a 2024 survey by the organization found that only 10.9% (29 companies) of companies had sought compensation. This is a slight increase from 8.8% (28 companies) in a similar survey from 2010.

Low Awareness

The organization's Secretary-General, Takayoshi Domon, noted that despite the enormous financial impact, social awareness of shoplifting as a serious problem remains low, even among retailers. One reason for the low rate of compensation claims, he said, is that many companies are either unaware of the procedures or find them too burdensome.

Fast Retailing declined to disclose specific figures on the number of shoplifting incidents, total damages, or its "unknown loss rate." This term refers to inventory discrepancies that cannot be clearly explained.

However, the company stated that it has been implementing countermeasures for several years. These include retraining staff and installing security cameras. While these efforts have led to notable improvements, Fast Retailing decided to strengthen its civil response due to ongoing theft incidents.

Unknown Loss

A 2024 fact-finding survey by the National Shoplifting Prevention Organization found that among companies reporting unknown loss, the estimated causes were: shoplifting (41.4%), management errors (38.0%), and employee theft (2.7%).

Domon said Fast Retailing's approach could set a precedent, and compensation claims "are likely to become more common in the future." He added that the organization plans to "offer consultation and support for companies interested in pursuing compensation."

Deterrent Effect

One company that has long pursued shoplifting compensation is Sanyodo Holdings. The Nagoya-based bookstore chain operates around 65 locations primarily in the Tokai region. Each store prominently displays notices about its compensation policy. According to the company, this approach has significantly reduced its unknown loss rate.

Sanyodo began seeking compensation from shoplifters two decades ago. Claims cover not only the value of stolen goods, often discarded after recovery, but also personnel costs, including the time staff spend dealing with police. "Even when we catch a shoplifter, our employees can be detained for hours. We charge for that time down to the minute," a company representative explained.

In fiscal year 2024, Sanyodo filed 87 compensation claims totaling about ¥6.21 million (about $40,000). Of those, 75 were successfully recovered, yielding approximately ¥5.74 million ($40,000), including over ¥820,000 ($6,000) in personnel costs. Each year, the company donates the recovered personnel cost portion to the National Shoplifting Prevention Organization to support broader anti-theft efforts.

Before adopting its compensation policy, Sanyodo's unknown loss rate was around 1.1%. After two decades, it has fallen to the 0.5% range for books. This shows clear evidence of the policy's deterrent effect. Store managers are also required to earn a private-sector certification known as the "Loss Prevention Specialist." As the representative noted, "To become a store manager, you must acquire the know-how to file compensation claims."

Author: Naoaki Miyamoto, The Sankei Shimbun

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