The 2006 National Retail Security Survey - Highlights
Studies show that the cause of shrink is much more likely to be the person behind the counter than customers entering the store. The average internal theft incident is also almost twice as expensive. Shoplifting is unquestionably an enormous problem in the retail industry. What many retailers do not realize is that while a third of shrink can be attributed to shoplifters, almost half of inventory loss is caused by employee theft.
According to the 2006 National Retail Security Survey conducted by Dr. Richard Hollinger at the University of Florida:
- Retailers report an annual inventory shrinkage of $40.5 billion.
- 46.80% of all inventory shrinkage is attributed to employee theft. This translates to an employee theft price tag of $19 billion.
- The average admitted dollar loss per employee theft incident was a record $1,306.59, which is higher than 2005 figure of $1,032.27.
- The average dollar loss per shoplifting incident was only $346.46.
- 31.60% of all inventory shrinkage is attributed to shoplifting.
- 14.40% of all inventory shrinkage is attributed to administrative & paper error.
- 3.75% of all inventory shrinkage is attributed to vendor error.
- 2.65% of all inventory shrinkage is attributed to an unknown error.
- Retailers are forced to pass along these substantial profit losses in the form of higher product prices.
- The average length of employment for a dishonest worker was 10.72 months before getting caught for dishonesty.
For a copy of the entire report, please contact Matt Robbins at info@theftdatabase.com or 866-597-3683.
