Retail Loss Prevention Research
United States
a. 2004 National Retail Security Survey
University of Florida USA
Department of Criminology, law & Society
Study consists of 107 major retail companies across 20 different retail sectors. Involving 64,890 stores (average 650 stores per retailer) and 3,633,840 staff.
Note majority of these companies have fairly large and sophisticated Loss Prevention departments.
Key findings.
Average recorded shrinkage of 1.54% of total sales. This followed a downward trend over the last 4 years.
Attributed sources of shrinkage were 47% staff, 34% shoplifting, 14% administration error, 5% vender. See graph 3 & 4 for employee theft and shoplifting by retail market sector.
CCTV after intruder alarm was the second and third most popular loss prevention systems used by stores in the survey. Eighty-two percent of respondence used CCTV in one form or another as their major loss prevention technology. See graph 5.
The incident of shoplifting offences continue to outnumber shoplifting incidents.
However the average (admitted) dollar loss per employee was substantially higher at $1,238.00 compared to the admitted average of $621.00 for apprehended shoplift . The actual amounts stolen in both these categories is estimated to be a lot higher.
The study continues to verify the long established relationship between higher shrinkage rates and increase usage of part-time employees.
A copy of the latest 2005 National Retail Security Survey can be sourced through the University of Florida by contacting the author Richard Hollinger and requesting a copy. Email rhollin@crim.ufl.edu
b. Seventeenth Annual Retail Theft Survey
Jack L. Hayes International
Study consists of 27 mainly supermarket retail companies involving 12,908 stores (average 478 stores per retailer). The Jack Hayes survey rely on some of the findings of the Florida National Retail Security Survey results.
Key findings.
Total apprehensions of both shoplifters and dishonest employees in 2004 increased by 4.78% (752,629 vs 718,264) from the previous year.
3.6% or 1 in every 27.8 employees was apprehended for theft from their employer. (Based on over 1.7 million employees.)
The average (admitted) dollar loss per employee was 6.6 times higher than the amount (admitted) stolen by shoplifters ($671.03 vs $ 101.60).
For more information on the Jack L. Hayes International study visit www.hayesinternational.com
Europe
European Retail Theft Barometer – 5
Monitoring the costs of Shrinkage and Crime for Europe’s Retailers
Fifth Report to the Retail Industry September 2005
Centre for Retail Research
Key Findings:
The study covered 25 countries in Europe including 440 major retailers with a combined total of 24,572 stores (average of 56 stores per retailer).
Average recorded shrinkage of 1.25% of total sales. This was down from 1.34 in the previous year.
Attributed sources of shrinkage were 29.9% staff theft, 49.2% shoplifting, 14.4% administration error, 6.5% supply-chain theft.
The six main programmes used to combat staff theft were CCTV, anti-theft messages given during staff training, induction training, controls on access to stock rooms, close liason with Finance and Audit, and back door control over waste and refuse.
Retailers reported that their emphasis over the next two years would be on back door controls over waste and refuse, higher spending targets on reducing internal crime, CCTV linked to audit and shop committees.
For copies of the European Retail Theft Barometer – 5 : go to www.retailresearch.org.
Canada
Retail Council of Canada
2003 Canadian Retail Security Report
Executive Summary
Study consists of 21 retail companies involving 8,431 stores (average 401 stores per retailer).
Key findings:
Average recorded shrinkage of 1.75% of total sales.
Attributed sources of shrinkage were 40% staff, 35% shoplifting, 18% administration error, 7% vender
Survey results show that 28.5 per cent of profit dollars were reported lost to shrinkage.
Respondents report that 17.25 per cent of their losses can be attributed to organised theft rings.
Internal theft was seen as a major challenge with a trend to increasing resources allocated to the prevention and detection of internal theft
For more information visit the Retail Council of Canada’s web site at: www.retailcouncil.org . The full report is only available to survey participants.
New Zealand
2003 New Zealand Survey of Retail Theft and Security
University of Otago
New Zealand Centre for Retail Research and Studies
Key findings
Few retailers record information on retail crime
Retailers believe the majority of their retail crime is carried out by customers (65%), as oppose to employee theft (12%), supplier (vender) theft (3%) or administration error (20%).
19% of retailers do not believe that their employees steal from them. The 81% who believe that their employees do steal from them bases this on actual experience.
80% of retailers think shrinkage is 1-2% of total sales.
23.5% of retailers don’t spend anything on capital items relating to store security. 40% of expenditure is on CCTV surveillance systems, followed by 30% on alarm systems
For a copy of the study contact the author Dr John Guthrie on jguthrie@business.otago.ac.nz
Commercial / Industrial Security
Internal theft, supplier/delivery theft, burglaries, vandalism, OSH compliance are all ongoing security risks that can have a direct influence on an operations bottom line.
Failure to monitor and control materials, products, staff and visitor access and movements in a commercial and industrial environment will alternately lead to un sustainable losses.
Vision Security currently works with a number of New Zealands largest commercial and industrial operators. We have designed security systems for the protection of a wide range of commercial, manufacturing, warehousing and distribution operations.
For up to date information on the latest technologies available and how companies in your industry are using them to improve their operations and security. Give us a call and we will have one of our industry experienced specific consultants provide you with advise .
