Halo Metrics provides retail security solutions that protect the shopping experience.
halmetric
 
newsettler
 

  Internal Theft Reported as the Leading Cause of Loss at a Global Level  

   By :  Ravinder
    Nov 27, 2015    Views: 2236
The New Global Retail Theft Barometer study has been released. The objective of this report is to understand shrinkage rates in four key regions, covering 24 countries, as well as the reasons for shrinkage and steps taken to prevent such loss. 
 
Key data points provided are as follows: 
• Average rate of shrinkage (in percentage terms) for the retail industry 
• Reasons for shrinkage: % internal theft, external theft, vendor theft, and administrative factors 
• Popular loss prevention solutions  
 
This year is the first year that participating retail loss prevention managers reported internal theft as the leading cause of loss at a global level of impact. Internal theft increased to 39% from 28% last year (LY), external theft decreased to 38% from 39% LY, vendor fraud decreased to 7% from 13% LY, and administrative loss decreased to 16% from 21% LY.
 
203 respondents reported a shrinkage rate of 1.23% across 18 retail verticals in the survey conducted during 2014–2015.The shrinkage cost stood at a whopping $123.39 billion for retailers, globally.
 
Based on responses from common respondents, who participated in both surveys during 2013–2014 and 2014–2015, the global shrinkage increased from 0.94% during 2013-2014 to 1.42% during 2014-2015.

GLOBAL SHRINKAGE – BY VERTICAL
Pharmacies/drugstores, apparel specialist retailers, and jewelry and watch specialist retailers witnessed the highest shrinkage across all regions during 2014–2015. One of the key reasons for such high pilferage in these stores is that these retailers deal in merchandise which can be easily concealed and resold at good prices, without any significant legal implications. Warehouse clubs and pet shops witnessed the lowest shrinkage rates. 
 
Pharmacies/drugstores witnessed the highest increase in shrinkage rate (1.62 pps) during 2014–2015 (over the previous year). Other store types witnessing high increase in shrinkage included apparel specialist retailers (1.31 pps) and other non-grocery retailers (0.70 pps). Department stores witnessed an decrease of 0.87 pps, the highest among all store types. 
 
ORC, which is impacting the entire retail industry, is one of the major reasons for high shrinkage in pharmacies/drugstores. These criminals typically steal items such as medicine, baby formula, and health and beauty supplies. Some of these criminal groups have complex warehouse operations with bogus business accounts. This allows them to peddle stolen goods to wholesalers that sell them back to retailers from where the goods were originally stolen. The increasing sophistication and skills of shoplifters pose serious challenges to retailers.
 
GET YOUR COPY OF THE REPORT!
The GRTB report includes very interesting global shrinkage data from multiple retail verticals.  Including details about shrink rates broken down by internal, external, vendors, and administrative sources. Information is also included for all major retail verticals such as apparel, drug store, grocery, electronics etc. 
 
Although the study is a global and reaches 24 countries it does not have specific data for Canada.  In its North American results it only includes the US. The report is still a great source of information that can be used as a point of reference for Canadian Retailers.  For a free copy of the 135 page report please contact your local Halo Metrics sales representative.  It is available in both English and French.
0 Comment - Show Original Post
  Leave your comment
*Enter Captcha Code

  0 Comments
Blogs Feed
Featured Blogs


 
 
© Halo Metrics Inc. Copyright 2017.
Terms&Condition | Site Map | Return Policy | Contact                In Vancouver: 1-800-667-9199      In Toronto: 1-800-667-3390