Thieves who target vulnerable victims, such as the elderly, may not be sent to jail in future - if it is shown they were motivated by desperation or need.
At present, such offences attract a prison sentence of at least 18 weeks.
The Sentencing Guidelines Council (SGC), which advises courts in England and Wales, will call for the use of more community orders in future.
House burglary is not covered by the plans but a drug or gambling addiction could mitigate other types of theft.
And higher sentences could be handed out if items stolen are worth more than £2,000 or are of high sentimental value, the guidelines said.
Among other planned changes is a suggestion that thieves who steal from shops could escape prison even if they use force which causes a victim minor injuries.
But those who shop-lift from small, independent traders will be given stiffer sentences than thieves who target large chain stores.
A panel which advises the SGC says the proposals could mean that 20% of shoplifters are treated more leniently.
Vulnerable victims
The SGC is chaired by the Lord Chief Justice for England and Wales, Lord Phillips, and is formed of senior judges, barristers, police officers and criminal law experts.
It is recommending that in future theft from the vulnerable - such as the elderly - could be punishable by a community order if the perpetrator steals to support a drug or alcohol habit or gambling addiction.
It is also suggesting that the maximum imprisonment for cases involving force or intimidation against a vulnerable victim be reduced from seven to three years.
The guidelines are open for consultation until May.
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