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Retailers losing Millions do due Theft

How much do stores lose from theft?
Peter Baskerville

It just goes to show that there is someone somewhere conducting a study into something the makes the world tick when "The Barometer" conducts a comprehensive global study into the cost of merchandise theft for the retail industry in 2013-2014 right here - The Barometer

That particular report puts the global shrinkage rate (loss from shoplifting, staff theft, supplier fraud) at 1.29% of sales turnover which is lower than what I experienced in the 10 years I worked in an Australian department store in the 80s where the figure was generally around the 2% mark. The report does say that if you add the cost of theft prevention to the cost of actual theft, you get rate of 1.81% of sales.

Some interesting statistics that come out of the report include:
  • While shoplifting is the biggest reason for theft at 39% of all losses, the dishonest employee is not far behind at 28%.
  • Mexico has the greatest loss from theft, while Norway has the lowest.
  • The low priced discounters suffer the highest theft rate. Go figure!
  • Retailers add their anticipated loss from theft to their prices, which means that the honest shopper is paying a theft tax of $63.56 per person per year.
  • In the USA the age demographic of the most prolific shoplifter is 18-30 (42%) and the peak season for shoplifting is the Christmas/end of year holiday period (72%)

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