Global Retail Theft Barometer Study Finds Shrink Down 5.6 Percent

Global retail theft totaled $107.3 billion in 2010, representing a 5.6 percent decrease from the prior year (6.8 percent in the U.S.), according to the fourth annual edition of the Global Retail Theft Barometer.

The Global Retail Theft Barometer is the only global study on retail shrink. The study, sponsored by an independent grant from Checkpoint Systems, monitored the costs of shrink (loss from shoplifting/employee crimes and administrative errors) in the global retail industry between July 2009 and June 2010, and found that shrink decreased in all regions surveyed. The biggest decrease was in North America.

Still, the proportion of global retailers that reported increased actual or attempted shoplifting in 2010 was 31.1 percent (36.7 percent in the U.S.)

“Even with the shrink decrease, retail crime cost the average family in the 42 countries surveyed an extra $186 on their shopping bill,” said Professor Joshua Bamfield, Director of the Centre for Retail Research and author of the study. “In the U.S., that number was $422.68, a phenomenal figure.”

The 2010 study also found that retailers increased their spending on loss prevention and security by 9.7 percent over 2009, to $26.8 billion globally; in the U.S. the increase in loss prevention spending over 2009 amounted to 12.5 percent.

“The correlation between increased security spending and a global 5.6 percent decrease in theft is very significant,” Bamfield said. “It highlights the importance of continued advancement and improvement of loss prevention programs, as reducing theft is key to the success and growth of retailers’ businesses.”

“In 2008 at the start of the economic downturn, the temptation for retailers was to reduce their loss prevention spending,” said Rob van der Merwe, Chairman, president CEO of Checkpoint Systems. “This typically leads to an increase in shrink and that is what we saw with the 2009 Theft Barometer study. Retailers quickly realized the need to correct this trend and began to invest in smart deployments that could be quickly implemented with high ROIs, such as increased protection of high-theft merchandise, and more employee training and store audits. This resulted in a short-term win and a decrease in shrink.

“As we continue to slowly recover from the recession, it is perhaps the right time to combat shrink with a more comprehensive path and begin looking to the merging technologies that will carry retailers through to the future. Examples include the newest generation of EAS and also RFID technology to additionally provide better tracking and visibility of inventory across the supply chain, leading to the elimination of out-of-stocks and increased sales.”

Shrink cost retailers $107.3 billion during the study period, representing 1.36 percent of global retail sales.

This is down from 1.43 percent the previous year. The country with the highest rates of shrink as a percentage of sales was India (2.72 percent of retail sales). The lowest rate of shrink was found in Taiwan (0.87 percent). The U.S. rate was 1.50 percent.

While shrink is down overall, some of the most stolen items have suffered increased shrink since last year, including children’s wear, outerwear, shaving products, luxury cooked meats and infant formula.

Shrink varies according to business type, vertical market and country. In 2010, some of the highest average shrink rates were found in apparel/clothing and fashion/accessories (1.72 percent); and cosmetics/perfume/beauty supply/ pharmacy (1.70 percent). Customer theft, including shoplifting and organized retail crime caused the greatest shrink loss in most countries at 42.4 percent of shrink, followed by employee theft at 35.3 percent.

“Although retailers have made considerable progress in introducing new anti-shrink policies, more than 25 percent of the retail ‘top fifty’ most-stolen product lines still have no specific protection,” said van der Merwe. “So our industry needs to accelerate innovation to help better protect retailers and consumers.”

North American Highlights:

  • North American retailers are different from the rest of the world in regarding employee theft as their greatest shrink problem, causing 43.7 percent of shrink. The second largest source was shoplifting at 35 percent.
  • Some 47.8 percent of U.S. retailers reported that they experienced increased losses from organized retail crime (ORC).
  • The highest average rates of shrink were in cosmetics/perfume/beauty supply/pharmacy (1.88 percent), auto parts/hardware/building materials retail (1.75 percent) and apparel/clothing/fashion and accessories (1.69 percent).

Featured

  • Cloud Security Alliance Brings AI-Assisted Auditing to Cloud Computing

    The Cloud Security Alliance (CSA), the world’s leading organization dedicated to defining standards, certifications, and best practices to help ensure a secure cloud computing environment, today introduced an innovative addition to its suite of Security, Trust, Assurance and Risk (STAR) Registry assessments with the launch of Valid-AI-ted, an AI-powered, automated validation system. The new tool provides an automated quality check of assurance information of STAR Level 1 self-assessments using state-of-the-art LLM technology. Read Now

  • Report: Nearly 1 in 5 Healthcare Leaders Say Cyberattacks Have Impacted Patient Care

    Omega Systems, a provider of managed IT and security services, today released new research that reveals the growing impact of cybersecurity challenges on leading healthcare organizations and patient safety. According to the 2025 Healthcare IT Landscape Report, 19% of healthcare leaders say a cyberattack has already disrupted patient care, and more than half (52%) believe a fatal cyber-related incident is inevitable within the next five years. Read Now

  • AI Is Now the Leading Cybersecurity Concern for Security, IT Leaders

    Arctic Wolf recently published findings from its State of Cybersecurity: 2025 Trends Report, offering insights from a global survey of more than 1,200 senior IT and cybersecurity decision-makers across 15 countries. Conducted by Sapio Research, the report captures the realities, risks, and readiness strategies shaping the modern security landscape. Read Now

  • Analysis of AI Tools Shows 85 Percent Have Been Breached

    AI tools are becoming essential to modern work, but their fast, unmonitored adoption is creating a new kind of security risk. Recent surveys reveal a clear trend – employees are rapidly adopting consumer-facing AI tools without employer approval, IT oversight, or any clear security policies. According to Cybernews Business Digital Index, nearly 90% of analyzed AI tools have been exposed to data breaches, putting businesses at severe risk. Read Now

  • Software Vulnerabilities Surged 61 Percent in 2024, According to New Report

    Action1, a provider of autonomous endpoint management (AEM) solutions, today released its 2025 Software Vulnerability Ratings Report, revealing a 61% year-over-year surge in discovered software vulnerabilities and a 96% spike in exploited vulnerabilities throughout 2024, amid an increasingly aggressive threat landscape. Read Now

New Products

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame.

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.