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.

You Wouldn’t Cut Your Own Hair. Why Run Your Own Retirement Sale?

After being in business for over a quarter of a century, Wayne Reid, owner of Wayne Jewelers in Wayne, Pennsylvania, decided it was time for a little “me time.” He says, “I’ve reached a point in my life where it’s time to slow down, enjoy a lot of things outside of the jewelry industry. It just seemed to be the right time.” He chose Wilkerson to handle his retirement sale because of their reputation and results. With financial goals exceeded, Reid says he made the right choice selecting Wilkerson to handle the sale. “They made every effort to push our jewelry to the forefront of the showcases,” he says, lauding Wilkerson for their finesse and expertise. Would he recommend them to other jewelers who want to make room for new merchandise, expand their business or like him, decide to call it a day? Absolutely he says, equating trying to do this kind of sale with cutting your own hair. “The results are going to happen but not as well as if you have a professional like Wilkerson do the job for you.”