Tags: shoplifting | economy | crime | cost

Shoplifting Cost the World $112 Billion Last Year

By    |   Monday, 25 Nov 2013 08:39 AM

Shoplifting has always been problematic on a global scale and last year it came with a price tag of $112 billion that affected retailers all over the world, according to the 2012-2013 Global Retail Theft Barometer.

Shoplifting, employee or supplier fraud and organized retail crime produces a loss of inventory better known as “shrink” or retail theft, CNBC points out.

Retailers place the blame on sluggish economic recoveries and organized retail crime which accounts for the increase in shrink that has affected most countries, according to a study by Checkpoint Systems, a retail security firm and market research company Euromonitor.

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"As a growing share of the population struggles to meet its financial obligations, the occurrence of both shoplifting and employee theft reportedly rose," based on the report.

The report also said, "shoplifting is on average the most important cause of shrinkage in all countries reviewed, followed by employee theft.”

Of the 157 companies studied in the survey, they analyzed 160,000 stores in 16 countries totaling $1.5 trillion in sales in 2012.

Brazil and Mexico had the highest shrink rates making up for 1.6 percent of overall retail sales with the U.S. and China shortly trailing behind at 1.5 percent, CNBC explains.

Of the 16 countries surveyed, Japan and Australia reported the lowest rates at 1.0 Percent and 1.1 percent, respectively.

Among the most wanted goods are items that are easy to steal and conceal, have the most potential for high resale value and have a decent ticket price.

Sought after merchandise ranges from fashion accessories, jeans, footwear and lingerie to pricey electronics such as Apple devices, games and mobile accessories. Infant formulas with hefty price tags are desirable as well as allergy products according to the report.

Katharina Kunze, an associate consultant at Euromonitor tells CNBC, “'shrink' is a multi-dimensional threat for retailers across the globe, with shoplifting and employee theft, including organized crime, on the rise."

"Growing shrink concerns have put loss prevention high on the agenda of retail companies keen to invest in effective and proven loss prevention methods such as collaborating with technology companies and specialists for loss management solutions," she also added.

Devon and Cornwall police have said that shoplifting for basic necessities could up due to welfare reforms, Express and Exeter explains.

In a video interview, Chief Constable Shaun Sawyer told Police and Crime Commissioner Tony Hogg, “we fear there is some increase in crime out there partly caused by the recession and the difficulties families find themselves in.”

Tough times force people to take drastic measures.

Russell Holland, U.K. general manager of Checkpoint Systems explained to The Guardian "over the last year, retailers have certainly been making great strides in the fight against retail crime. However, times are still tough for many families across the country, hence the increase in theft of high value foodstuff such as fresh meat and cheese.”

In an effort to tackle losses, Jon Hayden, a Consulting Manager at Euromonitor advises, “a company wide strong shrink prevention culture is necessary.”

Editor’s Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See If You Qualify)

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Shoplifting has always been problematic on a global scale and last year it came with a price tag of $112 billion that affected retailers all over the world, according to the 2012-2013 Global Retail Theft Barometer.
shoplifting,economy,crime,cost
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2013-39-25
Monday, 25 Nov 2013 08:39 AM
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