The UK social trend towards "a compensation culture" is increasing risk costs for high-street retailers, which could lead to higher-priced products in the stores.
A survey of AIRMIC members operating in the retail sector, most representing well-known shops and supermarkets, revealed that most believe that the growing threat of compensation claims is reflected in the additional
measures being taken by retailers to offset the risk. The cost of retailers taking this unanticipated but prudent action may be reflected in future price increases, said nine out often risk managers questioned.
Andrew Cornish, Chairman of the AIRMIC retailers SIG said: "Some sectors of society are quick to find people and organisations to blame when things go wrong; often followed
by a desire to seek compensation, if necessary through the courts. Plainly, retailers, who form an integral part of society, providing its goods and serving its needs, can fall into the spotlight when such incidents occur. Retailers do seek to minimise the risks, preventing accidents occurring in the first place, and then, if they occur, managing the impact of any compensation claims on financial results."
