Global Retail Theft Barometer Study Finds
Shrink Cost Retailers $128 Billion Worldwide,
Averaging 1.29 Percent of Sales
 

Retail Loss "Penalty" Costs Average US Household $403 Annually;
Cost of Retail Crime as Percentage of Revenue Rose 27 Percent in US

THOROFARE, NJ - Nov. 6, 2014 - Shrink, comprised of shoplifting, employee or supplier fraud and administrative errors, cost the global retail industry more than $128 billion last year, $42 billion in the US alone, according to the latest Global Retail Theft Barometer. This represents 1.29 percent of retail sales, on average.

Per household retail crime across the 24 countries surveyed ranged from $74 to $541. The annual cost of shrink to US shoppers, as passed on from retailers, averaged $403 per household.

The study, underwritten by an independent grant from Checkpoint Systems, Inc. (NYSE: CKP), was carried out in 2014 by The Smart Cube and Ernie Deyle, a retail loss prevention analyst. It was based upon in-depth phone and written survey interviews conducted in 24 countries among 222 retailers representing $744 billion in sales in 2013.

According to the study, shrink is down slightly in most countries. The lowest shrink rates were recorded in Norway (.83 percent of retail sales), followed by Japan. The US came in at 1.48 percent of retail sales, down slightly from 1.50 percent. The highest rates were recorded in Mexico (1.70 percent) and China (1.53 percent). The overall reduction in shrink was attributed to an increased focus on loss prevention methods and a slightly improved economic outlook, particularly in North America. In addition, there was increased loss prevention spending in countries with the best shrink improvements.

While shoplifting is the biggest cause of all retail shrink in 16 of the 24 countries surveyed, in the US, employee theft ranked first at 42.9 percent, with shoplifting next at 37.4 percent.

Read more in our D&D Daily Special Report here.

To download the complete study, visit www.GlobalRetailTheftBarometer.com