Italtile, which makes and sells tiles, bathroomware and other home products, is having to relocate or even close stores because of crime, BusinessTech reports.
The impact of crime was highlighted in Italtile’s results for the six months ending December 2024, which noted the challenges of operating in South Africa.
The company said: “As criminal behaviour and illegal activities flourish, we are continuously committing significant effort and investment to bolster our security ecosystem.”
In extreme cases, Italtile has had to relocate or even close stores in unsafe areas over the reporting period.
The group’s retail brands are CTM, Italtile Retail and TopT, represented through a total network of 211 stores, including seven online stores.
“Ensuring that our customers, staff, and stores are secure is a primary concern for management and a growing expense for the business,” the company said.
The World Bank and commercial insurers have highlighted the increasing risk of businesses faced with crime.
The World Bank estimates that crime costs the South African economy at least 10% of Gross Domestic Product (GDP) annually.
This is lost through stolen property, protection costs – through increased security and insurance – and missed economic opportunities.
It is estimated that one in eight businesses has fallen victim to some form of crime, most of which resulted in financial losses.
These trends are most pronounced in provinces with larger shopping centres, such as Gauteng, the Western Cape, and KwaZulu-Natal. Gauteng leads in commercial crime cases.