Retail Loss Prevention Research Reveals Changing Practices; Six Million Thieves Apprehended Annually Is Tip of Iceberg
Report Analyzing Global Retail Crime Available via Free Download From Checkpoint Systems
LONDON, UK, and THOROFARE, NJ – March 18, 2013 – A new report that analyzes global retail crime and loss prevention (LP) trends since 2001 has found, among various areas researched, that the number of retail thieves apprehended annually continues to be about six million, and this is just the very tip of the iceberg. More than 78% of shrink is indeed due to shoplifting by dishonest customers or retail employees. New products in fast-paced categories such as electronics, perfumes and sportswear being brought to market every year at premium prices are among the most likely to be stolen. Fresh meat remains a high-theft category for supermarkets and hypermarkets.
Retailers have, however, taken action in recent years. Of the 50 most stolen products, the number of items protected from theft has increased from 60% in 2007 to 75% in 2011 with EAS (Electronic Article Surveillance) source tagging and special high-theft solutions implemented by more retailers each year.
More than 86% of the LP professionals surveyed saw inventory management and/or loss prevention as primary drivers to implement RFID (Radio Frequency identification).
The report also points out that the role of LP departments is evolving to increasingly provide a strategic service to the other areas of the business. Online retailing and new payment systems such as smart-phones bring new risks to the industry, meaning that LP professionals would benefit from working closely with IT, store operations and marketing in the fight against crime. The report notes that this collaboration draws on joint methods for analyzing shrink while data obtained from electronic surveillance and RFID solutions is often used to make improvements in marketing, operations and logistics.
While the report points out the clear correlation between loss prevention spending and lower shrink, the length and depth of the global recession has resulted in increased rates of shrink since 2007″ The report, produced by the Centre for Retail Research, includes recommendations for the retail industry. The report is available via free download.
“Changing Retail, Changing Loss Prevention” analyzes the evolution of retail crime and loss prevention uncovered by the “Global Retail Theft Barometer” publications since 2001.
Per Levin, president, Shrink Management and Merchandise Visibility Solutions, Checkpoint Systems, said, “In this ever changing environment, we are pleased to support the global retail community with research that offers benchmarks and practical insights with the objective to help retailers improve their merchandise availability and grow sales profitably .”
Sample topics within the report include the following:
- Sources of Retail Shrink
- Trends in Shrink
- Explanations for Shrink Growth During the Recession
- The Impact of Organized Retail Crime
- Refund Fraud
- Impact of investment in Loss Prevention
- Changing Patterns in What People Steal
- Most Stolen Items
- Electronic Tagging and RFID
- Detailed Report Conclusions
Interested parties may obtain a full version of the 17-page report here.
About the Centre for Retail Research
The Centre for Retail Research provides authoritative and expert research and analysis of the retail and service sectors in Britain, Europe and globally. The Centre, originally a university research group, has been independent since 1997. Its Director is Professor Joshua Bamfield. It is totally independent and is not connected to any outside organisation or interest group. The CRR work is based on understanding retail and consumer trends for our client, analysing the main drivers of retail change and making accurate forecasts.
About Checkpoint Systems, Inc. (www.checkpointsystems.com)
Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint enables retailers and their suppliers to reduce shrink, improve shelf availability and leverage real-time data to achieve operational excellence. Checkpoint solutions are built upon 40 years of RF technology expertise, diverse shrink management offerings, a broad portfolio of apparel labeling solutions, market-leading RFID applications, innovative high-theft solutions and its Web-based Check-Net data management platform. As a result, Checkpoint customers enjoy increased sales and profits by improving supply-chain efficiencies, by facilitating on-demand label printing and by providing a secure open-merchandising environment enhancing the consumer’s shopping experience. Listed on the NYSE (NYSE: CKP), Checkpoint operates in every major geographic market and employs 5,600 people worldwide.