2015 Global Retail Theft Barometer

This report is a study of the losses incurred due to merchandise shrinkage in the global retail industry. It consists of 203 retailers in 24 countries, with 2014 retail sales of $996 billion, providing information. This study was conducted by The Smart Cube and Ernie Deyle, and commissioned by Checkpoint Systems.

Shrinkage Rates
Shrink, which is comprised of shoplifting, employee theft, vendor/supplier fraud and administrative errors, cost the global retail industry $123 billion in 2014, or 1.23% of retail sales. Countries reporting the lowest percent of shrink were:
. Norway (0.75%)
. Switzerland (0.76%)
. France 0.81%)
While countries with the highest percent of shrink were:
. Mexico (1.68%)
. Netherlands (1.48%)
. Finland (1.38%)

For common respondents (those who provided information for both the 2014 GRTB and 2015 GRTB), the global retail shrinkage rate increased from 0.94% to 1.42%. Among countries reporting the highest percent increase in shrink compared to the previous year were:
. Japan (100% increase)
. Brazil (68% increased)
. United States (54% increase)

Global shrinkage rates by the “type of retailer” reflected the following:
Retailers reporting the highest percent of shrink were:
. Pharmacies/Drug Stores ( 1.99%)
. Apparel Specialist (1.80%)
. Jewelry/Watch (1.73%)
Retailers reporting the lowest percent of shrink were:
. Pet Shops (0.48%)
. Warehouse Clubs (0.77%)
. Beauty Specialist (0.80%)

Sources of Shrink
Shoplifting and dishonest employees account for 77% of global retail shrink, and 81% of North America shrink. It is interesting to note the slight differences between all retailers globally and North American retailers when comparing sources of shrink.
Global Retailers
Dishonest Employees: 39%
Shoplifting: 38%
Administrative Errors: 16%
Vendor/Supplier Fraud: 07%
North America Retailers
Dishonest Employees: 45%
Shoplifting: 36%
Administrative Errors: 13%
Vendor/Supplier Fraud: 06%

Most Stolen Items
Items that are small, easy to conceal, and ready for resale (batteries, mobile phones/accessories, spirits, fragrance, beauty/make-up products, fashion accessories, meats, razor blades and footwear) are most vulnerable to theft.

For a copy of the Global Retail Theft Barometer visit:
http://www.globalretailtheftbarometer.com

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