Shrink comprised 1.38 percent of sales last year according to the NRF/University of Florida Survey.
Shrink is a growing problem for retailers, according to the findings of a new NRF/University of Florida survey. The 2016 National Retail Security Survey reveals that retailers’ inventory shrink averaged 1.38 percent of retail sales, or $45.2 billion in 2015, up by $1.2 billion from 2014.
The report found that 47 percent of those polled reported increases in overall inventory shrink in 2015, due primarily to increases in shoplifting with an average loss of $377 per incident. Robberies also continue to plague retailers, costing them an average of $8,180.17 per incident, an increase from $2,465 in 2014. According to the findings, the rise in robbery-related losses was the result of an increase in jewelry stores reporting big-figure losses.
“With a constantly evolving retail landscape, loss prevention becomes more complex every day,” explained Bob Moraca, NRF Vice President of Loss Prevention. “LP professionals have been working diligently to find advancements in technology aimed at deterring crime in our industry, sometimes even before it happens – but as our techniques get more sophisticated, so too do the criminals.”
While shoplifting and robbery levels rose, the report did find a decrease in the average loss from dishonest employee cases. And while the number of employee apprehensions rose, prosecutions, terminations and civil demands for these internal incidents actually fell.
The survey also found that most retailers continue to rely on LP professionals to apprehend shoplifters. One example of this is Walmart’s decision to bring back greeters as part of their loss prevention efforts in stores, as Innovative Retail Technologies reported. In a blog post, the retailer explained, “Last year, we launched a pilot program that in many stores, moved our greeters from action alley back to the front door, and in others, introduced a brand-new position: customer host, an associate who greets customers, but also checks receipts where appropriate, assists with returns, and helps keep entrances clean and safe.”
Walmart also created a new position that has an employee overseeing the self-checkout aisles, which is an area that is often prone to theft.
“Loss prevention professionals continue to do an exceptional job at locating the issues and finding solutions to prevent additional loss in their retail stores,” said Dr. Richard Hollinger, University of Florida criminology professor and lead author of the NRSS. “It is important for retailers to continue building relationships with law enforcement and leverage new technologies that can further provide protection to their assets, customers and employees.”
The annual National Retail Security Survey also examined point-of-sale data mining and closed-circuit television, and helps retailers identify the changes in the loss prevention landscape.
