How can shoplifting affect the economy

Hello!

In order for goods and products to be sold, they must first be made. The goal for most companies is to produce goods at a lesser cost than they will be sold, which then profits the company.
In order for the company to sell the goods, it must first purchase the product from the producer. If the item is shoplifted, the company will have paid to receive the item but would not have made any profit from reselling it.

This affects the economy because people and companies then pay for an item without making a profit from it (as they intended to do). The company then loses money rather than making it. If shoplifting continues, this can ultimately lead the company to go out of business because it cannot afford to purchase and resell products.

I hope this helps answer your question!