The Centre For Retail Research just published a study about retail shrinkage around the world for 2009. Shrinkage is defined as stock loss from crime or waste.
Key findings from the study are:
- Total global shrinkage (stock loss from crime or waste expressed as a percentage of retail sales) cost retailers in the 41 countries US$ 114.823 billion, equivalent to 1.43% of their retail sales.
- The cost of crime per family was $208.39.
- There was a rise in shrinkage and crime across the world. Shrinkage costs rose by 5.9% (from 1.35% to 1.43% the highest rate seen since the series started in 2001.
- Only two countries avoided shrinkage increases; Singapore and Austria.
- Shoplifting was seen as the major problem that retailers faced, accounting for 42.5% of shrinkage or $48.9 billion.
- In the US, Canada, and Australia employee theft was thought to be larger than shoplifting.
- In the U.S., shoplifting was thought to account for ‘only’ 35.7% ($15.1 billion) of shrink and employee fraud 44.3% ($18.7 billion).
- Disloyal employees accounted for 35.5% of shrinkage or $40.7 billion.
- Internal error and administrative failure (e.g. pricing or accounting mistakes) was 16.4% ($18.8 billion), and supplier or vendor theft and fraud was 5.6% of shrinkage ($6.4 billion). Both these totals had improved over the previous year.
Of course people like you and I pay for this in higher prices. The graphs below are quite revealing.
More detail can be found here.
Tags: Behavior
