Shoplifting, employee and supplier fraud, organised retail crime and administrative errors cost the UK high street more than £3.4bn last year and lost retailers 1.2% of their sales, according to a new report.

Retailers and supermarkets reported a surge in the theft of high value fresh food – including meat, cheese and fresh coffee – as a result of the economic downturn, according to the 2012-13 Global Retail Theft Barometer.

The report, by Euromonitor International, a consumer market research company, and financed by global security company Checkpoint Systems, said the losses amounted to an average of £124.60 per household.

Shoplifting represented the biggest problem to UK retailers, accounting for 36% of total losses, or £1.224bn. However, theft by employees was also a major concern, accounting for 33% of the overall figure. Administrative and non-crime losses and supplier fraud were estimated at 25% and 6% of the total amount respectively.

In the UK, food theft has increased in the past 12 months, possibly due to huge pressure on family finances. Products such as mature cheddar cheese, fresh meat including gammon joints and fresh coffee were among the most stolen items.

Russell Holland, UK general manager of Checkpoint Systems, said: "Over the last year, retailers have certainly been making great strides in the fight against retail crime. However, times are still tough for many families across the country, hence the increase in theft of high value foodstuff such as fresh meat and cheese.

The British Retail Consortium said high incidences of shoplifting and food theft ultimately pushed prices up. BRC crime policy adviser Laura Davies said: "Our most recent retail crime survey found that customer thefts account for 83% of all incidents, but significant under-reporting means that the full picture isn't being presented.

"During the recession, there was an increase in shoplifting for personal use, but regardless of the motive retail crime shouldn't be seen as a petty or victimless offence. It affects shops and staff, pushes up retailers' costs and can impact directly on communities."