Tyco Retail Solutions releases the new
2018 Sensormatic® Global Shrink Index
in partnership with PlanetRetail RNG
shrink rate of 1.82 percent cost retailers nearly
$100 billion in 2017, according to the findings
- May 22, 2018 -
"Shrink," otherwise known as a reduction in inventory due to shoplifting,
employee theft or other errors, significantly impacts a retailer's bottom line.
Tyco Retail Solutions,
a global leader in data-driven loss prevention, inventory intelligence and
traffic insights, today released the industry's most extensive study conducted
in recent years, providing insights into the sources and impacts of global
retail shrink. The Sensormatic Global Shrink Index is a culmination of research
that measures world-wide retailer performance, allowing them to benchmark their
shrink rates to others in the same vertical and region.
Tyco commissioned global retail market intelligence provider PlanetRetail RNG to
conduct the 2018 Sensormatic Global Shrink Index
which included over 1,100 retail decision makers across four regions, 14
countries and 13 retail segments. Retailers surveyed operate over 229,000
stores, generated an estimated $1.56 trillion during 2017-2018 and account for
80 percent of total global retail sales. The retailers work in the world's
leading economies, which account for 73 percent of global Gross Domestic Product
The scope and coverage of the study includes how loss prevention professionals
are measured and incentivized, the technologies and services being leveraged,
the top stolen items and brands, and data elements being used to monitor and
According to the Sensormatic Global Shrink Index, shrink cost retailers nearly
$100 billion globally last year. Shrinkage across retail stores in the U.S.
accounted for 1.85 percent of sales, slightly above the global rate (1.82
percent). Although the country ranked ninth in terms of a percentage of sales,
its position as the largest global consumer market means this translates into
the highest losses based on shrinkage value at $42.49 billion of sales - almost
half of the total across all country markets surveyed. Other key U.S. findings
● External theft/shoplifting, including organized retail crime (ORC), make up
the most significant percentage of losses at 35.55 percent of lost sales,
slightly above the global average, followed by loss due to internal shrinkage,
including employee theft, at 24.54 percent.
● After Electronic Article Surveillance (EAS), alarm monitoring is the next most
popular loss prevention investment, followed by access control systems,
exception-based reporting and closed-circuit television (CCTV).
● Fashion and accessories have the highest rate of shrink by retail vertical at
2.43 percent of sales.
These statistics highlight the magnitude of shrink's impact on retail and
affords the opportunity to dive deeper into the sources of shrink, particularly
in the U.S., as well as the loss prevention tools to help combat loss.
"Best in class retailers are optimizing their physical stores by ensuring that
operational controls are in place for growing problems such as retail shrink,"
said Catherine Walsh, senior vice president and general manager, Tyco Retail
Solutions. "The Sensormatic Global Shrink Index benchmarks retailer performance
globally and sheds light on other factors affecting loss prevention. Knowing the
state of shrink helps retailers better assess the challenges and solutions to
make merchandise secure yet accessible for a better customer experience."
Tyco Retail Solutions is a globally trusted leader, helping retailers discover
new ways to control loss and leverage it as an opportunity to increase
To view the full report's findings, visit the 2018 Sensormatic
Global Shrink Index
PlanetRetail RNG is a global intelligence and advisory business exclusively
focused on retail. For more information, please visit
About Johnson Controls
Johnson Controls is a global diversified technology and multi industrial leader
serving a wide range of customers in more than 150 countries. Our 120,000
employees create intelligent buildings, efficient energy solutions, integrated
infrastructure and next generation transportation systems that work seamlessly
together to deliver on the promise of smart cities and communities. Our
commitment to sustainability dates back to our roots in 1885, with the invention
of the first electric room thermostat. We are committed to helping our customers
win and creating greater value for all of our stakeholders through strategic
focus on our buildings and energy growth platforms. For additional information,
please visit http://www.johnsoncontrols.com or follow us @johnsoncontrols on
About Tyco Retail Solutions
Tyco Retail Solutions, part of Johnson Controls, is a leading provider of
analytics-based Loss Prevention, Inventory Intelligence and Traffic Insights for
the retail industry. Our solutions deliver real-time visibility and predictive
analytics to help retailers maximize business outcomes and enhance the customer
experience in a digitally-driven shopping world. Our more than 1.5 million data
collection devices in the retail marketplace capture 40 billion shopper visits
and track and protect billions of items each year. Our retail portfolio features
the premier Sensormatic®, ShopperTrak® and TrueVUE brands, as well as a full
suite of building technology solutions. For more information, please visit
TycoRetailSolutions.com, or follow us on
Twitter, and our
Click here to download the full report.