The 34th Annual Retail Theft Survey by Jack L. Hayes International, Inc. reports on over 200,000 shoplifter and dishonest employee apprehensions in 2021 by just 25 large retailers, who recovered over $580 million from both apprehended and non-apprehended thieves.
When it comes to shoplifting, the survey shows many retailers moved away from apprehensions in 2021 and focused more on recoveries. While our survey revealed shoplifting apprehensions were down 16.2% in 2021, overall shoplifting recoveries were up a staggering 30.8%! Survey respondents noted the pandemic environment, staff safety, reduced police response and higher engagement risks as some of the reasons for less shoplifter apprehensions. As for employee theft, there was an increase in 2021 in both dishonest employee apprehensions and recovery dollars, 6.0% and 29.8% respectively. Survey respondents noted additional focus on internal theft, enhanced investigation methods/tools and less supervision of associates as some of the reasons for increased employee theft apprehensions and recovery dollars.
Highlights from this highly anticipated annual theft survey include:
Participants: 25 large retail companies with 22,751 stores and over $650 billion in retail sales (2021).
Total Apprehensions & Recoveries
. 204,404 shoplifters and dishonest employees were apprehended in 2021, down 12.8% from 2020.
. Over $240 million was recovered from apprehended shoplifters and dishonest employees in 2021, up 9.9% from 2020.
. Over $580 million was recovered from both apprehended and non-apprehended thieves, up an amazing 30.7% in 2021.
Shoplifting
. 166,745 shoplifters were apprehended in 2021, down 16.2% from 2020.
. Over $196 million was recovered from apprehended shoplifters in 2021, up 6.1% from 2020.
. Dollars recovered from shoplifters where no apprehension was made ($339 million increased an amazing 51.1% in 2021.
Dishonest Employees
. 37,659 dishonest employees were apprehended in 2021, up 6.0% from 2020.
. Over $44 million was recovered from dishonest employees in 2021, up 29.8% from 2020.
Average Case Value
. Total Thefts: The average total theft case value in 2021 was $1,180.39, up 26.0% from 2020.
. Shoplifting: The average shoplifting case value in 2021 was $1,178.57, up 26.6% from 2020.
. Employee Theft: The average dishonest employee case value in 2021 was $1,188.46, up 22.6% from 2020.
Shoplifting: Survey participants noted the following reasons as to why their Shoplifting apprehensions and recovery dollars increased or decreased in 2021:
Increased:
- Progressive District Attorney policies which favor shoplifters
- Understaffed police departments
- Less staff on sales floor
- ORC (Organized Retail Crime) continues to be a primary factor
- More ‘hit n run’/fleeing shoplifters
Decreased:
- Focus on staff safety which reduced interactions with potential shoplifters
- Decreased police response
- Shorter store ‘open’ hours
- Fitting rooms closed for extended periods of time
- Focus on deterrence instead of apprehensions
Shoplifting Prevention Tips
- Use a Greeter: Position an associate/greeter at the store entrance(s) to greet all customers and offer assistance.
- Focus on good customer service and not ‘tasks’: Shoplifters want and need privacy; so take it away from them. When they respond, “I’m just looking”, teach associates to say, “Ok great, I’ll keep my eye on you in case you need any assistance”. Honest customers are ok with this, and this is the last thing a shoplifter 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.
- 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.
- Hire honest and motivated associates: Train them to prevent shoplifting (what to look for, how to respond to a possible shoplifter, etc.).
- Store Location: For stores facing parking lots. Keep an eye on area outside of store for possible get-a-way car(s) setting at the curb.
- Controls Fitting Rooms: Lock fitting room doors and monitor usage (customers and pieces).
- Use technology: Remember, technology (EAS: electronic article surveillance, CCTV, merchandise alarms, ink/dye tags, product tie-downs, Keeper boxes, etc.) must be managed. Also ensure policies/ procedures regarding technology are adhered to: EAS tagging 98% or higher, items required to be alarmed or tied-down are done so, etc.
- High Shoplifting Stores: Consider use of off-duty police, or guards in 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: Survey participants noted the following reasons as to why their Employee Theft apprehensions and recovery dollars increased or decreased in 2021:
Increased:
- Additional focus/attention towards associate theft
- Enhanced investigation methods/tools
- Less associate supervision created more opportunities for theft
- Increased store count/more stores open
- Increase in loyalty card fraud & discount abuse cases
Decreased:
- Updated POS software created less opportunities for theft
- Increased use of CCTV
- Less cash transactions
- Reduced LP staff/resources
- Better prevention with additional technology at POS
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 is most important. Money spent up-front in the screening process to identify ‘quality’ associates will result in savings from reduced turnover and losses.
- POS Exception Monitoring: Use an up-to-date POS exception-based monitoring program to quickly identify possible fraudulent transactions at the point of sale (ie. excessive refunds (cash or credit); refunds or voids before or after store hours; too many voids, excessive reward credits, dummy SKU usage, etc.).
- Confidential Reporting Line & Reward Program: Establish and promote a confidential line and reward program for associates to report acts of dishonesty, theft and abuse.
- Training & Awareness: Invest in a loss prevention training and awareness programs for both new-hires and current associates.
- Door Controls: Keep overhead doors closed/locked, and designated emergency exit doors alarmed to prohibit unauthorized use.
- Trash Controls: Supervised the trash removal process, use clear bags, flattened 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 have management 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/ $
