Retail Loss Growing Problem
Retail Loss Growing Problem
More than seventy percent of retail losses come in the form of internal and external theft and can seriously jeopardize a company’s existence. Shoplifting can directly contribute to the financial failure of a company and can also put at risk the personal safety of all staff members within an establishment. Today an unprecedented number of businesses in the retail field are experiencing bankruptcy to a large part due to both internal and external shrinkage. Current figures estimate that the average retail outlet in North America will experience losses of 1 and 8 percent of their annual sales, last year these figures were between .5 and 6 percent of annual sales. In Britain, and Australia this figure has jumped to between 2 and 12 percent. According to many leading loss prevention experts it is expected that the retail industry in North America will experience similar increase in overall theft and losses with in the next year or two. It is suspected that the global economic crisis as well as instability in energy costs which in turn affects the cost of all consumer goods is primarily the main factors in the rise of overall theft.
Generally the type of business, the level of security, the level of inventory control and level of employee training determines the amount of losses that a retailer will experience. Even with sophisticated anti-theft devices theft continues to grow, as today's thief is more advanced and sophisticated than ever before. To a large degree the Internet has become a resource for shoplifters and other thieves to learn how to be a more successful thief.
The cost of shoplifting is often passed on to customers through higher prices which can make the business less competitive as well it makes consumers victims of this crime. Unless a retailer has strict inventory controls in place many retailers may not even realize the extent of the shrinkage which is taking place right in front of them.
Have a look at these Shoplifting Facts and Statistics.
• Shoplifting is North America's # 1 property crime
• Shoplifting has doubled since 2000
• 1 in 10 people is a shoplifter
• In 2000 shoplifters stole an average of $152.00 per incident today it is more than $200.00 per incident
• Shoplifters are caught only 1 in 50 times
• Most non-professionals do not plan to steal in advance
• Shoplifting is most active in the month of December
• Sophisticated security systems alone do not stop all shoplifting
• A typical retail business will suffer losses of between 1% - 8% of total gross sales due to retail shrinkage
• The tax base is reduced and jobs are lost as a result of shoplifting
• Adolescents account for nearly 50% of shoplifters, but they only steal one-third as much as adults
• More than 50% of employees will look the other way while a shoplifting incident is in progress
• Half of the employees steal to some degree
You maybe surprised by some of the statistics surrounding shoplifting. As we are currently facing an economic down turn it is unlikely that figures in shoplifting or employee theft will decrease. Most loss prevention analysts predict a major skyrocket in retail losses.
Retail Loss Growing Problem - To learn more about this author, visit Fred Tarasoff's Website.
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Virtually every business experiences loss due to theft, but today the retail industry’s vulnerability to theft in the form of shoplifting as well as internal theft is unparalleled.
More than seventy percent of retail losses come in the form of internal and external theft and can seriously jeopardize a company’s existence. Shoplifting can directly contribute to the financial failure of a company and can also put at risk the personal safety of all staff members within an establishment. Today an unprecedented number of businesses in the retail field are experiencing bankruptcy to a large part due to both internal and external shrinkage. Current figures estimate that the average retail outlet in North America will experience losses of 1 and 8 percent of their annual sales, last year these figures were between .5 and 6 percent of annual sales. In Britain, and Australia this figure has jumped to between 2 and 12 percent. According to many leading loss prevention experts it is expected that the retail industry in North America will experience similar increase in overall theft and losses with in the next year or two. It is suspected that the global economic crisis as well as instability in energy costs which in turn affects the cost of all consumer goods is primarily the main factors in the rise of overall theft.
Generally the type of business, the level of security, the level of inventory control and level of employee training determines the amount of losses that a retailer will experience. Even with sophisticated anti-theft devices theft continues to grow, as today's thief is more advanced and sophisticated than ever before. To a large degree the Internet has become a resource for shoplifters and other thieves to learn how to be a more successful thief.
The cost of shoplifting is often passed on to customers through higher prices which can make the business less competitive as well it makes consumers victims of this crime. Unless a retailer has strict inventory controls in place many retailers may not even realize the extent of the shrinkage which is taking place right in front of them.
Have a look at these Shoplifting Facts and Statistics.
• Shoplifting is North America's # 1 property crime
• Shoplifting has doubled since 2000
• 1 in 10 people is a shoplifter
• In 2000 shoplifters stole an average of $152.00 per incident today it is more than $200.00 per incident
• Shoplifters are caught only 1 in 50 times
• Most non-professionals do not plan to steal in advance
• Shoplifting is most active in the month of December
• Sophisticated security systems alone do not stop all shoplifting
• A typical retail business will suffer losses of between 1% - 8% of total gross sales due to retail shrinkage
• The tax base is reduced and jobs are lost as a result of shoplifting
• Adolescents account for nearly 50% of shoplifters, but they only steal one-third as much as adults
• More than 50% of employees will look the other way while a shoplifting incident is in progress
• Half of the employees steal to some degree
You maybe surprised by some of the statistics surrounding shoplifting. As we are currently facing an economic down turn it is unlikely that figures in shoplifting or employee theft will decrease. Most loss prevention analysts predict a major skyrocket in retail losses.
Retail Loss Growing Problem - To learn more about this author, visit Fred Tarasoff's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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