Global Retail Shrinkage

Total global shrinkage (stockloss from crime or waste expressed as a percentage of retail sales) cost retailers in the 32 countries £49,808 million (US$ 98,630 million), equivalent to 1.36% of their retail sales.

Globally, shrinkage and crime rose from 1.34% to 1.36%. One-half of the countries suffered increased shrinkage, although Asia-Pacific retailers reduced shrinkage by 4.6%.

Retailers in most countries thought customer theft (shoplifting) was their biggest problem, responsible for 42.0% of shrinkage or £20,906 million ($41,504 million). But the US, Canada, and Australia perceived employee theft to be larger than shoplifting.

Across the 32 countries, disloyal employees cost 35.2% of shrinkage or £17,464 million ($34,671 million) internal error and administrative failure (e.g. pricing or accounting mistakes) was 16.5% (£8,184 million or $16,248 million), and supplier or vendor theft and fraud was 6.3% of shrinkage (£3,126 million [$6,207 million]).

Retailers apprehended almost 6 million store thieves in 2007, 87.5% of whom were customer thieves and 743,499 were employee thieves. Most employee thieves were apprehended by North American retailers.

Global loss prevention costs were £12,890 million ($25,590 million), 0.35% of retail sales. Revenue costs were £8,716 million ($17,303 million) and capital costs £4,174 million ($8,287 million). Security employees accounted for 54.6% of loss prevention spending, while spending on security equipment was 32.4% (£4,176 million or $8,290 million).

The global costs of retail crime, based on the costs of thefts by customers, disloyal employees and suppliers and vendors plus the costs of loss prevention were £54,446 ($108,093) million, equivalent to £142.85 ($283.61) per household.

The most-stolen items of retail merchandise within the 32 countries included branded and expensive products: cosmetics and skincare, alcohol, womenswear/ladies' apparel, perfume and fine fragrances, and designerwear. Other highly stolen lines included razor blades, DVDs/CDs, video games and video consoles, small electric items, and fashion accessories.

Ref : [Bamfield, J. (2007) Global Retail Theft Barometer, Nottingham: Centre for Retail Research.]

(Thank you, sidg )


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