Co-op employees have been instructed to avoid confronting or making physical contact with shoplifters, and that to do so would constitute grounds for immediate dismissal.
The supermarket chain has issued company directives to workers not to intervene when they witness thieves brazenly helping themselves to merchandise and leaving stores without paying.
It comes amid growing frustration over a persistent inability to tackle common retail theft.
Shoplifting across England and Wales reached unprecedented levels in the 12 months to September last year, with incidents of customer theft reported by retailers rising by 3.7 million to a whopping 20.4 million.
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One Co-op employee described the situation as absurd, telling the Sun: "It's ridiculous we have been told not to stop them walking out with stolen gear and that laying a finger on them is a sackable offence".
Staff members are now required to simply observe as goods are taken from shelves, powerless to prevent the theft.
The worker, a man in his 20s employed at a West London branch, revealed that thieves have stolen groceries and alcohol worth hundreds of pounds from the premises.
"They come in knowing they can fill their bags and walk out without paying," he said, "and they come back repeatedly to plunder shelves".
Co-op staff have been told they could be sacked for challenging shoplifters
|GETTY
The persistent theft of wine became so severe that management was forced to secure bottles inside a locked cabinet.
However, the employee noted that all other products throughout the store remain vulnerable to theft.
"We have to stand and watch," he said, describing the helplessness staff experience on a daily basis.
Conservative leader Kemi Badenoch weighed in on the issue last week, urging members of the public to take action when they witness shoplifting.
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Speaking to Times Radio about whether she would personally intervene, Ms Badenoch said: "It depends on how big they are. But yes, broadly, it would be my instinct".
The Tory leader emphasised that individuals should prioritise their own wellbeing when deciding whether to act.
"I think people should look after their personal safety," she said, "I think those people who are stronger should do more".
Retailers now face approximately 55,000 thefts daily, while the annual cost of retail crime has climbed to £2.2 billion
| GETTYThe surge in theft has been linked to a 2014 legislative change that removed the threat of imprisonment for anyone stealing goods valued under £200.
Retailers now face approximately 55,000 thefts daily, while the annual cost of retail crime has climbed to £2.2 billion.
Violence and abuse directed at shop workers exceeds 2,000 incidents each day, frequently sparked by attempts to confront thieves.
Co-op confirmed its no-challenge policy, with a spokeswoman stating: "Retail crime can be a trigger for violence and abuse, which is why we operate a no-challenge policy with the aim of protecting the safety of our teams".
Andrew Goodacre, CEO of the British Independent Retailers Association, said he was "not surprised" by surge in shoplifting across the UK.
He said: "The harsh reality of this is this is only the tip of the iceberg.
"We've been encouraging our members to report the incidents but a lot of them just don't bother reporting because historically they've had no response.
"So there's still a huge gap between the crimes being committed and the report to the police".