THE GLOBAL RETAIL THEFT BAROMETER 2009

Key Findings from the Global Retail Theft Barometer 2009

[Bamfield, J. (2009) Global Retail Theft Barometer, Nottingham: Centre for Retail Research.]

The latest edition of the Global Barometer covers 41 countries including the U.S., China, Australia, France, Germany, Brazil, South Africa, Turkey, and India. We collected data from 1,0689 of the largest retail corporations with combined sales of $822 billion. Once again, thanks are due to Checkpoint Systems, Inc. which has supported this independent survey since 2001.

• Total global shrinkage (stock loss from crime or waste expressed as a percentage of retail sales) cost retailers in the 41 countries US$ 114,823 million, equivalent to 1.43% of their retail sales.
• The cost of crime per family was $208.39 or €152.75.
• There was a rise in shrinkage and crime across the world. Shrinkage costs rose by 5.9% (from 1.35% to 1.43% the highest rate seen since the series started in 2001. Only two countries avoided shrinkage increases.
• Shoplifting was seen as the major problem that retailers faced, accounting for 42.5% of shrinkage or $48.9 billion. In the US, Canada, and Australia employee theft was thought to be larger than shoplifting. In the U.S., shoplifting was thought to account for 'only' 35.7% ($15.1 billion) of shrink and employee fraud 44.3% ($18.7 billion).
• Disloyal employees accounted for 35.5% of shrinkage or $40.7 billion.
• Internal error and administrative failure (e.g. pricing or accounting mistakes) was 16.4% ($18.8 billion), and supplier or vendor theft and fraud was 5.6% of shrinkage ($6.4 billion). Both these totals had improved over the previous year.

• Retailers apprehended 5.8 million store thieves in 2009.
• Global loss prevention costs were $24.5 billion, a fall over last year, now equivalent to 0.31% of retail sales. Operating/current costs were $17.4 billion and capital costs $7.1 billion. Security employees were more than one-half of loss prevention spending.

• The most-stolen items of retail merchandise within the 41 countries included branded and expensive products: cosmetics and skincare, alcohol, womenswear/ladies' apparel, perfume and fine fragrances, and designerwear. Other highly stolen lines included razor blades, DVDs/CDs, video games and video consoles, small electric items, and fashion accessories.