Survey Reveals US Retail Industry Lost Billions to Theft in 2011

The National Retail Security Survey shows that the U.S. retail industry lost more than $35 billion to theft in 2011. The survey also analyzes key loss prevention trends for retailers leading into the holiday season.

  • Nov 27, 2012

Employee theft, shoplifting/organized retail crime and administrative error are the main sources of loss affecting retailers, according to an annual survey conducted by the University of Florida with a funding grant from Tyco Integrated Security and Tyco Retail Solutions.

The 2011 National Retail Security Survey found that retail shrinkage in 2011 was 1.42 percent, down from 1.49 percent from the previous findings in 2010. This calculates to an approximate $35.28 billion annual loss to retailers as a direct consequence of preventable inventory issues, with 44.2 percent attributed to employee theft, 25.8 percent to shoplifting and organized retail crime and 12.1 percent to administrative error.

"The decrease in retail theft indicates retailers are implementing effective loss prevention solutions in order to diligently protect their assets," said University of Florida criminologist Richard Hollinger, Ph.D., who conducted the survey. "The holiday season is an important time for retailers to evaluate their security solutions, and the growing adoption and awareness of better loss prevention strategies has continued in the recent trend of reduced retail losses and improved profitability."

According to NRF, 2012 holiday sales are trending to increase by 4.1 percent to $586.1 billion, confirming retailers need to ensure their shrinkage is low in order to capitalize on increased sales. With improved technologies and a large number of consumers accessing retailers’ inventories from multiple touch points, inventory visibility and accuracy is key for loss prevention this holiday season.

“With the holidays and 2013 planning in full swing, it’s important for retailers to take a look at these statistics and evaluate security strategies accordingly,” said Michael Creedon, Vice President, Retail Sales and Operations, at Tyco Integrated Security. “While theft is down this year, organized retail crime is on the rise and loss prevention solutions remain very important to help shrinkage continue to decline and operations run more efficiently and effectively.”

Creedon suggests retailers work with a loss prevention expert to analyze solutions over the holidays and create a tailored and effective plan leading into the New Year. Tyco Integrated Security and Tyco Retail Solutions offer retailers security technologies, like their dual-technology tag, to help maintain a cohesive inventory visibility approach.

“As a total security solutions provider, we work with retailers to help confirm they have the right solutions and that they are using them in a way that maximizes their investment,” said Creedon. “Actively safe-guarding merchandise allows retailers to keep costs down and increase their ability to offer better prices to their customers, while potentially improving internal business practices.”

Featured

  • 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

  • AI Used as Part of Sophisticated Espionage Campaign

    A cybersecurity inflection point has been reached in which AI models has become genuinely useful in cybersecurity operation. But to no surprise, they can used for both good works and ill will. Systemic evaluations show cyber capabilities double in six months, and they have been tracking real-world cyberattacks showing how malicious actors were using AI capabilities. These capabilities were predicted and are expected to evolve, but what stood out for researchers was how quickly they have done so, at scale. Read Now

  • Why the Future of Video Security Is Happening Outside the Cloud

    For years, the cloud has captivated the physical security industry. And for good reasons. Remote access, elastic scalability and simplified maintenance reshaped how we think about deploying and managing systems. Read Now

  • UL Solutions Launches Artificial Intelligence Safety Certification Services

    UL Solutions Inc., a global leader in safety science, today announced the launch of artificial intelligence (AI) safety certification services, enabling comprehensive assessments for evaluating the safety of AI-powered products. Read Now

  • ESA Announces Initiative to Introduce the SECURE Act in State Legislatures

    The Electronic Security Association (ESA), the national voice for the electronic security and life safety industry, has announced plans to introduce the SECURE Act in state legislatures across the country beginning in 2025. The proposal, known as Safeguarding Election Candidates Using Reasonable Expenditures, provides a clear framework that allows candidates and elected officials to use campaign funds for professional security services. Read Now

    • Guard Services
Most   Popular

New Products

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • 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.

  • 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.