Annual Retail Theft Survey

35th ANNUAL RETAIL THEFT SURVEY

Shoplifter and Dishonest Employee Apprehensions and Dollar Recoveries Soared in 2022 as 81% of Surveyed Participants Reported an Increase in Shrink!

 

Click here to view a downloadable/printable PDF version of the survey, including some of our thoughts behind the numbers.

Wesley Chapel, FL – Jack L. Hayes International, Inc. released today the results of their 35th Annual Retail Theft Survey which reports on over 340,000 shoplifter and dishonest employee apprehensions in 2022 by just 26 large retailers, who recovered over $288 million from these 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 in 2022. Our survey revealed shoplifter apprehensions and recovery dollars from those apprehensions increased significantly in 2022, up 50.9% and 90.5% respectively,” said Mark R. Doyle, President of Jack L. Hayes International, Inc. Mr. Doyle added, “Recovery dollars where no shoplifter apprehension was made, but merchandise was recovered, increased 44.1% in 2022.” Mr. Doyle also stated, “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 in 2022.
  • Shrink: 81% of retailers surveyed reported that shrink increased in 2022.
  • Apprehensions: Participants apprehended 340,488 shoplifters and dishonest employees in 2022, up 45.6% from 2021.
  • Recovery Dollars: Participants recovered over $288 million from apprehended shoplifters and dishonest employees in 2022, up 70.5% from 2021.
  • Shoplifters: 295,654 shoplifters were apprehended in 2022, up 50.9%; and over $237 million was recovered from these shoplifters, up 90.5%. Note: 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%; and over $50 million was recovered from these employees in 2022, up 14.7%.

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.

SURVEY PARTICIPANTS

  • 26 Large Retail Companies (Dept Stores, Mass Merchant/Big Box, Specialty Apparel, Supermarket/Grocery)
  • 22,182 Stores (representing an excellent cross-section of the United States)
  • $704,161,733,977 in Annual Retail Sales (2022)
TOTAL RETAIL THEFT APPREHENSIONS Difference
  2021 2022 #/$ Pct. 
Apprehensions 233,864 340,488 106,624  45.6%
Recoveries $168,938,568 $288,090,581 $119,152,013  70.5%
Avg. Case Value $722.38 $846.11 $123.73  17.1%
Retail Theft Apprehensions Breakdown
SHOPLIFTING Difference
  2021 2022 #/$ Pct. 
Apprehensions 195,877 295,654 99,777  50.9%
Recoveries $124,502,693 $237,117,378 $112,614,685  90.5%
Avg. Case Value $635.62 $802.01 $166.39  26.2%
         
Recoveries
(No Apprehensions Made)
$336,654,100 $485,047,395 $148,393,295  44.1%
DISHONEST EMPLOYEES Difference
  2021 2022 #/$ Pct.
Apprehensions 37,987 44,834 6,847  18.0%
Recoveries $44,435,875 $50,973,203 $6,537,328  14.7%
Avg. Case Value $1,169.77 $1,136.93 -$32.83  – 2.8%

EMPLOYEE THEFT
Employee theft is perceived by some to be the most severe problem facing industry today! Many people often think of theft and abuse in companies as being isolated acts, which in themselves cost an organization little. Unfortunately, this is untrue! It is also not true that most employees are caught stealing inexpensive items such as ‘pens, pencils, and paper-clips’ from their employers. Over the years, Hayes International has witnessed a steady and significant rise in this serious problem. Each year thousands of employees are caught stealing from their employers and co-workers. Furthermore, our studies reflect that this group of thieves are being caught stealing far more than a few insignificant supplies. Below are a few highlights of our most recent survey:

Highlights From Jack L. Hayes International’s 35th Annual Retail Theft Survey

  • Apprehensions: Survey participants apprehended 44,834 dishonest employees in 2022, up 18.0% from 2021.
  • Recoveries: Dollars recovered from dishonest employee apprehensions totaled over $50 million in 2022, up 14.7% from 2021.
  • Case Value: The average dishonest employee case value in 2022 was $1,136.93, a decrease of 2.8% from 2021.
DISHONEST EMPLOYEES Difference
  2021 2022 #/$ Pct.
Apprehensions 37,987 44,834 6,847  18.0%
Recoveries $44,435,875 $50,973,203 $6,537,328  14.7%
Avg. Case Value $1,169.77 $1,136.93 -$32.83  – 2.8%

JOB APPLICANT ADMISSIONS
To further evaluate the severity of employee theft, Hayes International analyzed over 19,000 randomly selected Applicant Review questionnaires (pre-employment ‘honesty tests’) given to retail job applicants nationwide.

Of these 19,165 job applicants, 12,283 (64.1%) were rated as “low risk” and 3,700 (19.3%) were rated as “high risk”, due to their admissions of previous wrongdoings, and their attitudes regarding honest and dishonest behavior. (Note: The remaining 3,182 applicants (16.6%) were rated as “moderate risk”.) When comparing the admissions of “high risk” and “low risk” job applicants, it becomes most obvious why some applicants are considered a hiring risk and others are not. For example, listed below are various items on the Applicant Review questionnaire and the percent of high and low risk applicants admitting to each.

 
High Risk

Low Risk
→  I have frequently associated with fellow employees who admitted they were stealing merchandise from the company. 18.4% 5.4%
→  I am not an honest person and might steal or cheat. 9.3% 1.7%
→  I could be tempted to steal from my employer. 26.7% 7.8%
→  I might help friends steal from my company. 14.6% 1.3%
→  I have stolen money within the past 3 years. 17.5% 5.2%
→  I have stolen merchandise within the past 3 years. 15.9% 4.5%
→  I would possibly use marijuana/illegal drugs in the future. 23.1% 6.5%
→  I have previously sold marijuana or other illegal drugs. 4.3% 0.9%

Previous theft admissions for the group of 3,700 “high risk” job applicants totaled $256,050, or $69.20 per applicant, while the admissions for the group of 12,283 “low risk” job applicants totaled $71,930, or $5.86 per applicant. It is generally estimated the correct dollar amount for stolen money and merchandise is approximately 10 times the admitted amount. Therefore, based upon admissions made on The Applicant Review questionnaire, the average “high risk” job applicant was responsible for the theft of $692.03, compared to $58.56 for the average “low risk” job applicant.

SHOPLIFTING
For the past several years Loss Prevention professionals have rated shoplifting as their #1 shrink issue. Reasons cited for the increase in shoplifting include: Increased Organized Retail Crime (ORC) activity; Legislation raising Felony Threshold Levels; More “hit n run”/fleeing shoplifters; Less staff on sales floor creating more opportunities for shoplifters; and Thieves view shoplifting as a high reward, low-risk endeavor. Over the years, Hayes International has witnessed a steady and significant rise in shoplifting. Billions of dollars are stolen every year by shoplifters, negatively impacting retailers’ bottom-line profits, which results in higher prices to the consumer.

 

  • Total retail losses are approximately $94.5 billion annually (based on 2022 National Retail Security Survey)
  • Shoplifting is conservatively estimated to account for 40% of total retail shrink/losses.
  • Average shoplifting case for all types of retail is approximately $100.00  (Based upon data taken from various surveys)

Therefore, Hayes International estimates the following number of theft incidents and dollars lost to shoplifters:

Time Frame Dollars Incidents
Annually

$37.8 Billion

378 million
Daily (365 days) $100 Million
($103,561,644)
1,000,000
(1,035,616)
Per Hour (24) $4.3 Million
($4,315,068)
43,000
(43,151)
Per Minute (60) $72,000
($71,918)
700
(719.18)

SHOPLIFTING APPREHENSIONS SURVEY
Hayes International’s 35th Annual Retail Theft Survey reports on over 295,000 shoplifting apprehensions taking place in just 26 large retail companies representing 22,182 stores with combined 2022 annual sales in excess of $700 billion. Some shoplifter-related highlights from this survey are:

  • Apprehensions: Survey participants apprehended 295,654 shoplifters in 2022, an amazing increase of 50.9% from the prior year.
  • Recoveries: Dollars recovered from shoplifting apprehensions totaled over $237 million in 2022, up a staggering 90.5% from 2021.
  • Recoveries (no apprehension): Dollars recovered from shoplifters where no apprehension was made (over $485 million) increased a substantial 44.1% in 2022.
  • Case Value: The average shoplifting case value in 2022 was $802.01, reflecting an increase of 26.2% from 2021.
SHOPLIFTING Difference
  2021 2022 #/$ Pct.
Apprehensions 195,877 295,654 99,777  50.9%
Recoveries $124,502,693 $237,117,378 $112,614,685  90.5%
Avg. Case Value $635.62 $802.01 $166.39  26.2%
         
Recoveries
(No Apprehensions Made)
$336,654,100 $485,047,395 $148,393,295  44.1%

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