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Retail Theft and Inventory Shrinkage
Nalinrach SuksathapornPereya SuviwattanachaiSithiphon Suwanboriban
Retail Theft• Employee theft
• Shoplifting
• Vendor fraud
• Administrative error
Statistics• 2002 Losing $31 Billion to Theft
Source - National Retail Security Survey
• 1.7% of their total annual sales
• Last year - Losing $40.5 billion to TheftSource: University of Florida
Where Inventory Shrinkage Happens
Where Inventory Shrinkage Happens
Source of Inventory Shrinkage % of Loss* $ Lost
Employee Theft 48.50% $15.1 billion
Shoplifting 31.70% $9.7 billion
Administrative Error 15.30% $4.8 billion
Vendor Fraud 5.40% $1.7 billion
Total Inventory Shrinkage $31.3 billion
*total not equal to 100% due to rounding
What's the Harm? • Impacts everyone especially Consumers
• Average family of four : > $440 this year in higher prices because of inventory theft
• Theft’s Target: hot selling items on the holiday shopping season
Source: University of Florida criminologist Richard C. Hollinger, Ph.D.
Stopping Retail Theft
• point-of-sale systems:– detect potential theft problems at the cash
register– alert appropriate personnel in real-time – can be tied to digital video recorders
Stopping Retail Theft
• Source tagging programs:
- tiny anti-theft labels are placed inside an actual product
• Self-alarming anti-theft tags:
- broadcast an audible alarm throughout the store
http://www.youtube.com/watch?v=AT3sz2p7oUg
References• Retail Theft and Inventory Shrinkage. <
http://retailindustry.about.com/od/statistics_loss_prevention/l/aa021126a.htm>.
