Headlines

Retail Theft and Other ‘Shrink’ Rises to Nearly $49B

Published

7 years ago

June 22, 2017

INSTORE Staff

Theft amounts to 1.44% of sales.

It’s probably cold comfort, but if your retail business has been the victim of theft, you’re certainly not alone.

Thefts and other inventory “shrink” from retailers grew to $48.9 billion in 2016 from $45.2 billion the year before, according to a new survey released by the National Retail Federation and the University of Florida.

The thefts amounted to 1.44 percent of sales, up from 1.38 percent.

According to the report, nearly 49 percent of retailers surveyed reported increases in inventory shrink, while just under 17 percent said it remained flat. Shrink was divided into shoplifting and organized retail crime (36.5 percent), employee theft/internal (30 percent), administrative paperwork error (21.3 percent) and vendor fraud or error (5.4 percent).

“The seriousness of retail theft is much greater than most customers realize,” said Richard Hollinger, a veteran University of Florida criminology professor and the lead author of the report. “When criminals steal from retailers, consumers pay higher prices, the safety of innocent employees can be compromised and shoppers looking for popular merchandise often cannot find it. Retailers need to continue to invest in new technologies to prevent and prosecute these crimes.”

The survey of 83 loss prevention executives from a variety of retail sectors was conducted March 29 to May 1. The study is a partnership between Hollinger of the University of Florida and NRF and is sponsored by The Retail Equation.

This Third-Generation Jeweler Was Ready for Retirement. He Called Wilkerson

Retirement is never easy, especially when it means the end to a business that was founded in 1884. But for Laura and Sam Sipe, it was time to put their own needs first. They decided to close J.C. Sipe Jewelers, one of Indianapolis’ most trusted names in fine jewelry, and call Wilkerson. “Laura and I decided the conditions were right,” says Sam. Wilkerson handled every detail in their going-out-of-business sale, from marketing to manning the sales floor. “The main goal was to sell our existing inventory that’s all paid for and turn that into cash for our retirement,” says Sam. “It’s been very, very productive.” Would they recommend Wilkerson to other jewelers who want to enjoy their golden years? Absolutely! “Call Wilkerson,” says Laura. “They can help you achieve your goals so you’ll be able to move into retirement comfortably.”