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The Global Retail Theft Barometer 2011
GLOBAL RETAIL THEFT BAROMETER 2011
- Shrinkage rises to $119 billion in 2011, up 6.6% since 2010.
- Shrinkage an average of 1.45% in 43 countries compared to 1.36% in 2010.
- 35.9% of retailers reported that actual and attempted shoplifting rose last year and 24% suffered higher employee theft.
- The costs of retail crime-plus-loss prevention were $128 billion in 2011 equivalent to $199.89 per family. ($66.27 per individual).
After a dip in shrinkage last year (2009-10), shrinkage has risen in the 12-months ending June 2011 as a result of increased shoplifting, higher employee fraud, and organized retail crime (ORC). Total global shrink in 2011 cost retailers $119.092 billion, an average of 1.45% of global retail sales. The shrinkage rate was an average of 6.6% higher than 2010. Last year shrinkage was $108.092 billion (1.36% of sales), adjusted for the inclusion of South Korea and exchange rate changes. 'Shrinkage' or 'shrink' is inventory loss caused by crime or administrative error. In this report it is measured as a percentage of retail sales value.
The GRTB 2011 survey of major retailers in all business sectors in 43 countries provided 1,187 useable responses, 25%., with combined sales of $984 billion.
The results are grossed up to be equivalent the size of every national retail market surveyed
Causes of Shrinkage
The causes of shrinkage reflect retailer perceptions of the causes of shrinkage in their own businesses. Internal error including mispricing, invoicing errors and administrative failure cost $19.4 billion, representing 16.2% of total shrinkage.
Dishonest employees were thought to cause $41.7 billion (35.0% of shrinkage) of losses and customer theft, including shoplifting and organized retail crime, cost retailers $51.5 billion in 2011 (43.2% of total shrinkage) compared to $45.4 billion in 2010. This was a year-on-year increase of 13.4% in customer theft.
Sources of Shrinkage Loss by Continent
Organised Retail Crime 2011
Shrinkage by Country (percentage of sales)
Shrinkage Losses of Most Vulnerable Lines
Loss Prevention Spending 2011
Tagging and RFID