The 35th Annual Retail Theft Survey by Jack L. Hayes International, Inc. reports on over 340,000 shoplifter and dishonest employee apprehensions in 2022 by just 26 large retailers, who recovered over $750 million from both apprehended and non-apprehended thieves.
Eighty-one percent of survey participants reported an increase in shrink in 2022 and this is reflected in their total apprehension and recovery statistics. Total apprehensions increased 45.6% and total recovery dollars from these apprehensions increased 70.5% in 2022. Many retailers returned to making shoplifter apprehensions post pandemic and focused more of their attention on external theft issues. Our survey revealed shoplifter apprehensions and recovery dollars from those apprehensions increased significantly in 2022, up 50.9% and 90.5% respectively. Recovery dollars where no shoplifter apprehension was made, but merchandise was recovered, increased 44.1% in 2022. On the employee theft side, there was an increase in 2022 in both dishonest employee apprehensions and recovery dollars, 18.0% and 14.7% respectively.
Highlights from this highly anticipated annual theft survey include:
Participants: 26 large retail companies with 22,182 stores and over $700 billion in retail sales (2022).
Shrink: 81% of surveyed retailers reported shrink went up in 2022!
Total Apprehensions & Recoveries
- 340,488 shoplifters and dishonest employees were apprehended in 2022, up 45.6% from 2021.
- Over $288 million was recovered from apprehended shoplifters and dishonest employees in 2022, up 70.5% from 2021.
- Over $770 million was recovered from both apprehended and non-apprehended thieves, up an amazing 52.9% in 2022.
Shoplifting
- 295,654 shoplifters were apprehended in 2022, up 50.9% from 2021.
- Over $237 million was recovered from apprehended shoplifters in 2022, up 90.5% from 2021.
- Dollars recovered from shoplifters where no apprehension was made ($485 million) increased 44.1% in 2022.
Dishonest Employees
- 44,834 dishonest employees were apprehended in 2022, up 18.0% from 2021.
- Over $50 million was recovered from dishonest employees in 2022, up 14.7% from 2021.
SHOPLIFTING: We asked our survey participants why their Shoplifting apprehensions and recovery dollars increased or decreased in 2022; they contributed the following:
Increased:
- Returned to making apprehensions post pandemic
- Increased ORC (Organized Retail Crime) activity
- Less staff on sales floor increases shoplifting opportunities
- Thieves not afraid due to decriminalization, bail reforms and progressive DAs
- Poor economy resulting in more people shoplifting
Decreased:
- More focus on merchandise recovery than apprehensions
- Understaffed police depts with reluctance to prosecute
- Hands-off, no apprehension policy for safety reasons
- Structural changes, less store AP/LP positions
EMPLOYEE THEFT: We asked our survey participants why their Dishonest Employee apprehensions and recovery dollars increased or decreased in 2022; they contributed the following:
Increased:
- Better trained AP/LP staff focusing on internal investigations
- Upgraded EBR programs yielding more internal cases
- Associate burnout resulting in associates rationalizing their thefts
- Exploited expanding promotional programs to commit theft/fraud
- Associates see shoplifters getting away with theft, trying same thing
Decreased:
- Updated EBR software created less opportunities for theft
- Increased use of CCTV
- Structural changes; less AP/LP positions
- POS changes created better prevention
- Less associates, less theft
THEFT PREVENTION TIPS
Shoplifting Prevention Tips
- Use a Greeter/Adequately staff store: Position an associate at store entrance/exit(s) to greet all customers and offer assistance. Staff store to sufficiently service customers while they are shopping.
- Focus on customer service not tasks: Shoplifters want and need privacy; so take it away from them. When they respond, “I’m just looking”, teach associates to respond, “Ok great, I’ll keep my eye on you in case you need any assistance”. Honest customers are ok with this, and it is the last thing a thief wants to hear.
- Have associates walk the sales floor: Keep visible, and keep displays neat and organized (so missing items can be more easily noticed).
- Have good sight lines on the sales floor: Do not block the view of high value and highly popular items, and keep these items in sight of associate work areas.
- Hire honest and motivated associates: Train them to prevent shoplifting (what to look for, how to respond to a possible shoplifter, etc.).
- Use technology/tools: Remember, technology/tools (EAS, CCTV, merchandise alarms, product tie-downs, Keeper boxes, locked showcases, etc.) must be managed. Also ensure policies/procedures regarding technology are adhered to.
- Restrict Fitting Room Access: Keep fitting rooms locked or staffed at all times, limit and count items in/out, and continually service customer in fitting rooms.
- Limit item quantity on sales floor: Limit the number of certain items (high value, highly pilferable)placed on the sales floor. This will reduce vulnerability to large losses of these items and make it easier to identify missing items.
- Know your merchandise: Especially highly popular items, high value items, what’s stolen most often and what’s easily stolen. Study why these items are taken, evaluate their locations and packaging – then make changes as needed.
- Store Location: For stores facing parking lots. Keep an eye on the area outside of store for possible get-a-way car(s) setting at the curb.
- High Shoplifting Stores: Consider the use of off-duty police, or guards if necessary.
- Communications: Talk with other stores in your center/mall to stay current on local theft issues.
- Prosecute shoplifters: Thieves know which retailers prosecute and those that do not. Prosecution can be a good deterrent.
Employee Theft Prevention Tips
- Effective Pre-Employment Screening Process: The first step to controlling employee theft starts at the point-of-hire; do not hire the “bad apple”. A thorough pre-employment screening process (reference & criminal background checks, structured interviews, etc.) is most important. Money spent up-front to identify ‘quality’ associates will result in savings from reduced turnover & losses.
- Make Associates Feel Valued: An associate who feels valued through competitive pay, positive reinforcement, accomplishments recognized, a good work environment with no double-standards will be a happy associate who looks to uplift their workplace, not harm it.
- Use Current Technology: POS Exception Monitoring/CCTV: Use a current POS exception-based monitoring program to quickly identify possible fraudulent transactions at the point of sale (ie. excessive refunds/voids/discounts/price overrides; loyalty/reward card abuse, etc.). Use CCTV to monitor associates.
- Auditing for Compliance: Ensure consistent compliance to company policies and procedures by conducting unannounced loss prevention/shrink audits on a regular basis. By reducing the opportunity, you reduce the chance of theft/loss.
- Training/Awareness & Confidential Reward Programs: Invest in loss prevention training and Awareness programs for all associates, and promote a confidential reward program for associates who report dishonest activities.
- Door Controls: Keep overhead doors closed/locked, and designated emergency exit doors alarmed to prohibit unauthorized use.
- Trash Controls: Supervise the trash removal process, use clear bags, flatten all cartons, and keep dumpsters locked where possible.
- Package/Bag Checks: Conduct a package/bag check whenever an associate exits the location.
- POS Controls: Two associates (one a manager/supervisor when possible) should witness and verify refunds, voids, price overrides, etc.)
- Sales Verifications: “Pass-outs” are an easy way to steal with friends/relatives, so havemanagement conduct daily unannounced sales verifications to ensure all product sold was properly rung thru the POS register.
- Opening and Closing Coverage: Where possible, at least two associates (one a key-holder) should always be present at the opening and closing of the store. This is both a security and safety issue.
- Auditing for Compliance: Ensure consistent compliance to company policies and procedures by conducting unannounced loss prevention/shrink audits on a regular basis. Auditing not only helps keep awareness high, but by reducing the opportunity, you reduce the chance of theft/loss.
The full survey can be viewed and/or downloaded/printed from on our website at:
http://hayesinternational.com/news/annual-retail-theft-survey/
About The Author: Mark R. Doyle, is President of Jack L. Hayes International, Inc., and has over 36 years of experience in the shrinkage control/loss prevention field. He has consulted with some of the finest retail, wholesale and manufacturing companies in the world.Jack L. Hayes International, Inc. has been in the Loss Prevention/Shrinkage Control consulting business for over 40 years, and is recognized on an international level as the foremost loss prevention and inventory shrinkage control consulting firm in the world. $
