More than 200,000 shoplifting cases went unsolved over the space of 12 months, the Liberal Democrats have concluded from analysis of official figures.
The party, which studied statistics for England and Wales, says the government is “totally falling” to tackle a “growing crime epidemic”.
A Home Office spokeswoman said charging rates for shoplifting are up by “almost a third” in the past year.
According to the figures, 205,676 shoplifting cases were closed without a suspect being identified in the year to July.
About 15% of 362,809 cases were said to have resulted in a suspect being charged or summonsed.
Craig Beaumont, from the Federation of Small Businesses, said it is “disheartening” to see “under-pressure local small and independent businesses lose their hard-earned money”.
“The lack of police investigation and prosecution of those perpetrating these crimes is one factor behind the increasing number of our members saying they’ve been hit by organised shoplifting and threatening behaviour to their staff,” he added.
Chief Constable Amanda Blakeman, from the National Police Chiefs’ Council, said retail crime has a “damaging impact” and said officers are “committed to tackling offenders and supporting retailers”.
“Organised crime is of course only part of the problem and we continue to target those prolific and habitual offenders whose behaviour causes misery and takes profit from our communities and retailers,” she said.
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Alistair Carmichael, the Lib Dem home affairs spokesman, said: “As unsolved shoplifting soars across the country, organised criminal gangs are being let off the hook while shopkeepers are left vulnerable.
“Yet again, this Conservative government is totally failing to tackle a growing crime epidemic.
“We already know what works to stop crime – it’s not taskforces and gimmicks, it’s putting police back on the beat and ensuring that crimes are properly investigated.”
A Home Office spokeswoman said: “In the last year, charging rates for shoplifting offences are up by almost a third.
“Shoplifting is a blight on our communities and the policing minister has made clear that police should be taking a zero-tolerance approach to this crime.”
