Retail Shrinkage and More News

Recent research about loss prevention states that the industry loses about $57 billion yearly. The perpetrators are more brazen and the consequences more expensive. Surveillance and private surveillance personnel are not enough to stop shrinkage in the retail industry. The steps that the store employee can follow depend on the store and the state they are situated. Private Citizens are generally not allowed to restrain people against their will and by doing so opens the doors for civil or criminal law suits. For more news about shoplifting follow the links below.

Survey: Retail shrink translates into $57 billion loss; cash theft jumps 20%

New York — Shrinkage levels average 1.27% of sales, which translates to a $57 billion loss to the industry, according to the U.S. Retail Fraud Survey, which is based on research into the systems and strategies used by 100 leading North American retailers.

The biggest area of store loss remains employee theft (38% of shrink), up 3% from last year, according to the study, published by U.K. based Retail Knowledge and sponsored by Volumatic and Kount. It is followed by cash theft (24%), up 20% from last year, administration and book keeping errors (21%), down 9%, and shoplifting (11%), down 15%.

The biggest area of online loss is fraudulent use of credit cards (59% of shrink).

In other survey highlights:

• Return fraud is costing retailers an average of 0.25% of sales this year, compared with an average of 0.4% last year.

• With regards to loss prevention departments, on average, each member of the fraud prevention team is responsible for $103 million of sales.

Retailers apprehend shoplifters and dishonest employees in record numbers

While the increased brazenness and skills of both shoplifters and unscrupulous employees continue to plague retailers across the United States, the industry’s most respected loss prevention researchers offer some good news in their just released survey. According to numbers highlighted in the 26th Annual Retail Theft Survey conducted by Jack L. Hayes International, the leading loss prevention and inventory shrinkage control consulting firm, both apprehensions and money recovered from retail theft increased again in 2013.

The survey says almost 1.2 million shoplifters and dishonest employees were apprehended in 2013 by just 23 large retailers, who recovered over $199 million from thieves. The figures show that shoplifting apprehensions were up 2.5 percent and recovery dollars increased by 4.5 percent. When it came to cracking down on internal theft, the survey revealed that apprehensions for dishonest employees rose 6.5 percent and recovery dollars rose 2.5 percent. According to Mark R. Doyle, President of Jack L. Hayes International, these figures display a positive trend of apprehension and recovery that has been seen for three consecutive years.

A look back: Four lessons from my first LP conference

I was named NRF’s Vice President of Loss Prevention a little more than a month ago. It was perfect timing for me to jump in and do my best to meet thousands of my peers at NRF’s annual Loss Prevention Conference. Here are my top takeaways after experiencing the event for the first time behind the scenes.

• There’s a live stream audience for retail loss prevention. Gus Downing, producer of the LP News Network (LPNN), led this historic first-ever live broadcast from any loss prevention conference. Thousands of viewers watched LPNN’s eight hours of educational content, news and even an interview with me and Vicki Cantrell. Thanks to Downing and his team for their diligent coverage of the retail loss prevention issues that matter most to our community – at the event and throughout the year. There is added value as the stream is currently being broadcast on the D&D Daily as the gift that keeps on giving to the LP community.
• We’re in the age of “Brand and Business Protection.” The protection of products, our brands, employees and customers: No matter your focus, Cantrell was direct in her opening remarks last month. “We must prepare, plan, preserve, prevent and – most importantly – protect those we are entrusted to serve. By protecting our organizations, we keep them strong, and it is the strong who survive and thrive.” The transformation of NRF’s Loss Prevention Conference to NRF PROTECT is a commitment from NRF to prepare this community for the growing challenges, threats and responsibilities for retail loss prevention professionals. Keep your eyes peeled for more to come!