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How to Reduce Retail Shrinkage by Two Thirds? Concentrate on Shoplifters and Staff

15 minute read

Shoplifting statistics 

 

Source of Inventory Shrinkage:

  2018 2017 2016 2015
Shoplifting/external (including ORC – Organized Retail Crime) 35,7% 36.5% 39.3% 38.0%
Employee theft/internal 33,2% 30.0% 35.8% 34.5%
Administrative and paperwork error 18,8% 21.3% 16.8% 16.5%
Vendor fraud or error 5,8% 5.4% 4.8% 6.8%
Unknown loss 6,6% 6.8% 7.2% 6.1%

 

Top 5 Loss Prevention Systems in Use:

  2018 2017 2016
Burglar alarms 87.3% 96.8% 93.8%
Remote IP CCTV monitoring 76.2% 73.0% 60.9%
Armoured car deposit pickups 74.6% 85.7% 73.4%
Digital video recorders 74.6% 87.3% 93.8%
POS data mining 57.1% 76.2% 82.8%

 

Retail Loss Prevention Systems Growing in Use Compared with 2017: 

  2018 2017 % Point Difference from 2017
Simulated, visible CCTV 41.3% 14.3% 27.0
Observation mirrors 22.2% 12.7% 9.5
Theft deterrent devices(spider wraps/keepers, etc.) 41.3% 33.3% 7.9
Plainclothes store detectives 30.2% 22.2% 7.9
RF electronic security tags 30.2% 22.2%  7.9

 

Retail Loss Prevention Systems with Biggest Decreases in Use Compared with 2017:

  2018 2017 % Point Difference from 2017
Cables, locks and chains    34.9% 57.1% -22.2
Acousto-magnetic, electronic security tags 22.2% 44.4% -22.2
POS data mining     57.1% 76.2% -19.1
Live customer-visible CCTV 54.0% 73.0% -19.1
Merchandise alarms   20.6% 36.5% -15.9

 

Average Dollar Loss per Employee-Related Shrink Case

  2018 2017 2016 2015
Up to $249 22.0% 19.3% 11.9% 11.3%
$250 to $399 15.3% 14.0% 10.2% 9.7%
$400 to $499 4% 3.5% 11.9% 14.5%
$500 to $749 13.6% 7.0% 22.0% 16.1%
$750 to $999 10.2% 8.8% 10.2% 14.5%
$1,000 to $1,999 116.9% 15.8% 13.6% 16.1%
$2,000 to $4,999 18.6% 15.8% 18.6% 11.3%
$5,000 & above 3.4% 15.6% 1.7% 6.5%
Average $1203.16 $1922.80 $1233.77 $1546.83 

 

Average Dollar Loss Per Shoplifting Incident

Source: 2018 National Retail Security Survey
  2018 2017 2016 2015
$1 to $49 11.8% 13,3% 8.9% 6.1%
$50 to $99 13.7% 13.3% 20.0% 20.4%
$100 to $124 15.7% 11.1% 17.8% 10.2%
$125 to $149 5.9% 0.0% 6.7% 4.1%
$150 to $199 5.9% 6.7% 11.1% 12.2%
$200 to $299 15.7% 6.7% 11.1% 12.2%
$300 to $499 15.7% 12.6% 8.9% 10.2%
$500 to $999 9.8% 11.1% 11.1% 12.2%
$1,000 and over 7.8% 22.2% 4.4% 8.2%
Average $559 $798.48 $376.80 $317.84
Median $150 $230 $138 $165

 

Additional reading:

Shopping and Crime (Crime Prevention and Security Management) 1st ed. 2012 Edition
by Joshua Bamfield (Author)

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