Retail Shrink Creeping Up According to Preliminary Results of National Retail Security Survey

After recording an all-time low shrinkage percentage in 2009, retail crime and fraud is on the upswing.

Richard Hollinger, professor in the Department of Criminology, Law and Society at the University of Florida, presented the preliminary results of the 2010 National Retail Security Survey Tuesday at the National Retail Federation Loss Prevention Conference in Grapevine, Texas.

In 2009, shrinkage was 1.44 percent of all retail sales. The 2010 number rose to 1.56 percent. That may not seem like a large gain, but in the massive retail industry, that translates to $37.1 billion lost last year compared to $33.5 billion in the previous year.

“That number, $37.1 billion, is just a staggering amount of money,” Hollinger, the survey's author, said.

In further breaking down the study, two of the usual suspects headed the list once again in 2010 -- employee theft and shoplifting/organized retail crime.

Employee theft accounted for 43.7 percent ($16.2 billion) of shrink while shoplifting/organized retail crime was second with 32.6 percent ($12.1 billion.) Other loss factors included administrative error, vendor fraud and “unknown.”

Hollinger said the “unknown” reason for shrink has increased in the last few years.

In further breaking down the study, supermarket and grocery stores were especially susceptible to shrink, with an above-average 3.1 percent rate. Hollinger did say some of the issue with the high number could be spoliage, which some do count as shrinkage.

Another interesting vertical  was drug and pharmacy stores, whose shrink doubled in 2010. Hollinger speculated the large increase could be because of the theft of prescription drugs like Oxycontin.

Integrity screening, including drug testing and criminal conviction checks, are garnering interest from retailers to help combat shrink, according to the survey.

In technology, retail organizations are looking to spend money on POS exception-based technology tied to camera systems and remote IP video monitoring. Video analytics also made the list of technology retailers are looking into deploying for the first time.

The survey is conducted with a funding grant from ADT.

About the Author

Brent Dirks is senior editor for Security Today and Campus Security Today magazines.

Featured

  • From Surveillance to Intelligence

    Years ago, it would have been significantly more expensive to run an analytic like that — requiring a custom-built solution with burdensome infrastructure demands — but modern edge devices have made it accessible to everyone. It also saves time, which is a critical factor if a missing child is involved. Video compression technology has played a critical role as well. Over the years, significant advancements have been made in video coding standards — including H.263, MPEG formats, and H.264—alongside compression optimization technologies developed by IP video manufacturers to improve efficiency without sacrificing quality. The open-source AV1 codec developed by the Alliance for Open Media—a consortium including Google, Netflix, Microsoft, Amazon and others — is already the preferred decoder for cloud-based applications, and is quickly becoming the standard for video compression of all types. Read Now

  • Cost: Reactive vs. Proactive Security

    Security breaches often happen despite the availability of tools to prevent them. To combat this problem, the industry is shifting from reactive correction to proactive protection. This article will examine why so many security leaders have realized they must “lead before the breach” – not after. Read Now

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

  • Survey: 48 Percent of Worshippers Feel Less Safe Attending In-Person Services

    Almost half (48%) of those who attend religious services say they feel less safe attending in-person due to rising acts of violence at places of worship. In fact, 39% report these safety concerns have led them to change how often they attend in-person services, according to new research from Verkada conducted online by The Harris Poll among 1,123 U.S. adults who attend a religious service or event at least once a month. Read Now

Most   Popular

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.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area.