November 2007
Ist Worldwide Shrinkage SurveyThe Global Retail Theft Barometer isthe most extensive survey of shrinkever undertakenIt is ...
Ist Worldwide Shrinkage SurveyWhy Global? A survey that responds adequately to the global nature of the retail business to...
Ist Worldwide Shrinkage Survey                           The GRTB in numbers…3.600 questionnaires were sent out to Loss Pr...
Ist Worldwide Shrinkage Survey      Costs by Countries                31.931 M.€                Countries with the29.285 M...
ConsumersThe overall cost of retail crime (stock loss fromretail plus the costs of loss prevention)represented an annual ‘...
Shrinkage RatesOne-half of the 32 countries sufferedincreased shrinkage between 2006 and 2007,although Asia-Pacific retail...
Global Sources of Retail ShrinkageGlobal Source of Shrinkage 2007    Global Sources of Shrinkage 2007 (M€)                ...
Internal Theft 30.9 % of internal losses suffered by retailers occurred at the check-out 36.5 % in the back office, stockr...
Security Costs –                                       Internal and Customer Theft          Retailers apprehended 6 millio...
Global Costs of Retail Crime              Cost of Retail Crime: The cost of theft by customers, disloyal employees,supplie...
Most Stolen Items   Top 5                 N. America                Europe                  Asia-PacificMerchandise    1  ...
Security Costs                             Security                                            Revenue      Capital       ...
Retailers Using Source Tagging TechnologySource Tagging was used by 39.8% of retailers Percentage retailers using source t...
EUROPE25 countries of Western Europe andCentral Europe took partThe number of European retailersparticipating was 48943.27...
Main Figures in EUROPEShrinkage cost European Retailers a total of29.285 M€This year shrinkage has started to            r...
Sources of Retail Shrinkage in EUROPECUSTOMERS                 14.188 M€ (48,5%)EMPLOYEES                  8.389 M€ (28,6%...
Retail Shrinkage in EUROPE        WESTERN EUROPE           CENTRAL EUROPE          27.081 M€                 2.204 M€     ...
Total Global Retail ShrinkageTHE FIRST WORLDWIDE SHRINKAGE SURVEY
Cost of Retail Crime in EUROPE                            Thefts by Suppliers Customer    Employee                        ...
Percentage of Retailers Using Source Tagging                                          TechnologyThe percentage of largeEur...
Most Stolen Items in EUROPE 1        Alcohol 2        Cosmetics and Skin Care 3        Womenswear 4        Perfumes and fi...
Learning Points. The survey reveals…The cost of retail crime had a significant impact on the global economy in 2007    98,...
The global retail theft barometer 2007
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The global retail theft barometer 2007

  1. 1. November 2007
  2. 2. Ist Worldwide Shrinkage SurveyThe Global Retail Theft Barometer isthe most extensive survey of shrinkever undertakenIt is the first worldwide surveyThe survey was carried out by theCentre for Retail Research, led byProfessor Joshua BamfieldThe objective is to give retailerscomparative information about theshrink situation at a global level THE FIRST WORLDWIDE SHRINKAGE SURVEY
  3. 3. Ist Worldwide Shrinkage SurveyWhy Global? A survey that responds adequately to the global nature of the retail business today An opportunity to benchmark across different regions, countries and sectors A chance to Identify trends in specific regions of the world and try to understand the differences and similarities in the data revealed THE FIRST WORLDWIDE SHRINKAGE SURVEY
  4. 4. Ist Worldwide Shrinkage Survey The GRTB in numbers…3.600 questionnaires were sent out to Loss PreventionManagers in 32 countries around the world (Europe, U.S.,Canada, Australia, India, Japan, Singapore and Thailand)820 retail companies138.603 storesRetailers taking part represented 16% of total European retailsales turnover, 13% of North American retail sales and 5% ofretail sales in Asia PacificSatisfactory response rate of 22.8% THE FIRST WORLDWIDE SHRINKAGE SURVEY
  5. 5. Ist Worldwide Shrinkage Survey Costs by Countries 31.931 M.€ Countries with the29.285 M.€ highest shrinkage rates: India, Thailand 11.208 M.€ and U.S. Austria, Switzerland and Iceland had the lowest rates Total global shrinkage 72.424 M. € THE FIRST WORLDWIDE SHRINKAGE SURVEY
  6. 6. ConsumersThe overall cost of retail crime (stock loss fromretail plus the costs of loss prevention)represented an annual ‘tax’ on honest consumersin EUROPE of: 168,51 € per household (Global cost per household: 208,25 €) THE FIRST WORLDWIDE SHRINKAGE SURVEY
  7. 7. Shrinkage RatesOne-half of the 32 countries sufferedincreased shrinkage between 2006 and 2007,although Asia-Pacific retailers reducedshrinkage by 4.6%Globally, the average shrinkage rateincreased by 1.5 % THE FIRST WORLDWIDE SHRINKAGE SURVEY
  8. 8. Global Sources of Retail ShrinkageGlobal Source of Shrinkage 2007 Global Sources of Shrinkage 2007 (M€) THE FIRST WORLDWIDE SHRINKAGE SURVEY
  9. 9. Internal Theft 30.9 % of internal losses suffered by retailers occurred at the check-out 36.5 % in the back office, stockroom, or delivery bay 32.6 % on the sales floorTHE FIRST WORLDWIDE SHRINKAGE SURVEY
  10. 10. Security Costs – Internal and Customer Theft Retailers apprehended 6 million store thieves Customer Thieves Employees Thieves Average Amount Amount Stolen Stolen (€) per Number per incident Number indident TotalsNORTH AMERICA 1.635.687 459,5 € 663.555 1.230,76 € 2.299.242Percentagescustomers/employees 71.4% 28.06% 100%EUROPE 3.481.490 82 € 69.015 3.778 € 3.550.505Percentagescustomers/employees 98.1% 1.9% 100%ASIA-PACIFIC 108.720 40 € 10.929 151 € 100%Percentagescustomers/employees 90.9% 9.1% 100%GLOBAL TOTALS 5.225.897 198 € 743.499 1.443 € 5.969.396Percentagescustomers/employees 87.5% 12.5% 100% THE FIRST WORLDWIDE SHRINKAGE SURVEY
  11. 11. Global Costs of Retail Crime Cost of Retail Crime: The cost of theft by customers, disloyal employees,suppliers and vendors plus the cost of loss prevention. NORTH AMERICA 36.098 M€ EUROPE 32.417 M€ ASIA-PACIFIC 10.771 M€ THE FIRST WORLDWIDE SHRINKAGE SURVEY
  12. 12. Most Stolen Items Top 5 N. America Europe Asia-PacificMerchandise 1 Cosmetics & Skincare Alcohol Alcohol 2 Ladies Apparel Cosmetics & Skincare Cosmetics & Skincare 3 Perfumes & Fine Fragrances Ladies Apparel Ladies Apparel 4 Alcohol Perfumes & Fine Fragrances Perfumes & Fine Fragrances 5 Designer Apparel Razor Blades High Cost & Specialty Food (e.g. meat, cheese, seafood) THE FIRST WORLDWIDE SHRINKAGE SURVEY
  13. 13. Security Costs Security Revenue Capital CostsNORTH AMERICA 9.379 M€ 6.487 M€ 2.892 M€EUROPE 7.821 M€ 5.271 M€ 2.550 M€ASIA - PACIFIC 1.592 M€ 948 M€ 644 M€GLOBAL LOSS 18.792 M€ 12.706 M€ 6.086 M€PREVENTION WORLD THE FIRST WORLDWIDE SHRINKAGE SURVEY
  14. 14. Retailers Using Source Tagging TechnologySource Tagging was used by 39.8% of retailers Percentage retailers using source tagging technology (%) 27,4% 39,7% 45,2% THE FIRST WORLDWIDE SHRINKAGE SURVEY
  15. 15. EUROPE25 countries of Western Europe andCentral Europe took partThe number of European retailersparticipating was 48943.276 stores THE FIRST WORLDWIDE SHRINKAGE SURVEY
  16. 16. Main Figures in EUROPEShrinkage cost European Retailers a total of29.285 M€This year shrinkage has started to riseThe increase cost 454 M€ more than last year.For consumers, the shrinkage rate represented acost equivalent to 61,95 € per head inEurope THE FIRST WORLDWIDE SHRINKAGE SURVEY
  17. 17. Sources of Retail Shrinkage in EUROPECUSTOMERS 14.188 M€ (48,5%)EMPLOYEES 8.389 M€ (28,6%)SUPPLIERS 2.019 M€ (6,9%)INTERNAL ERROR 4.689 M€ (16,0%) 29.285 M€ total Shrinkage THE FIRST WORLDWIDE SHRINKAGE SURVEY
  18. 18. Retail Shrinkage in EUROPE WESTERN EUROPE CENTRAL EUROPE 27.081 M€ 2.204 M€ TOTAL EUROPE 29.285 M€The lowest shrinkage rates occurred in Austria (0,94%),Switzerland (0,96%) and Iceland (1%).The highest identified shrinkage rates were found in theBaltic States (1,42%), the Czech Republic (1,41%) andGreece, Slovakia and Hungary (all 1,36%). THE FIRST WORLDWIDE SHRINKAGE SURVEY
  19. 19. Total Global Retail ShrinkageTHE FIRST WORLDWIDE SHRINKAGE SURVEY
  20. 20. Cost of Retail Crime in EUROPE Thefts by Suppliers Customer Employee Security Loss and losses in the Crime Crime Prevention distribution14.188 M€ 8.389 M€ 2.019 M€ 7.821 M€ Total Cost of Retail Crime 32.417 M€ THE FIRST WORLDWIDE SHRINKAGE SURVEY
  21. 21. Percentage of Retailers Using Source Tagging TechnologyThe percentage of largeEuropean retailers in the surveyusing Source Tagging was39.7%Within the next two years afurther 29.6% of large retailersexpected to introduce it THE FIRST WORLDWIDE SHRINKAGE SURVEY
  22. 22. Most Stolen Items in EUROPE 1 Alcohol 2 Cosmetics and Skin Care 3 Womenswear 4 Perfumes and fine fragrances 5 Razor Blades 6 DVDs and CDs 7 Childrenswear8 Accessories 9 Designerwear10 High cost and specialty foodTHE FIRST WORLDWIDE SHRINKAGE SURVEY
  23. 23. Learning Points. The survey reveals…The cost of retail crime had a significant impact on the global economy in 2007 98,630 Million$, 1.36% of retail turnoverThe sources of shrink are diverse, internal theft is growing 2007: 42% external shrink – 35.2% internal shrink (European average for internal shrink in 2006: 30.7%)By the end of the decade, the majority of the world’s retailers will be using Source Tagging 65.3% already use it, or will do so in the next two yearsThe most-stolen merchandise was very similar worldwide 1st: Cosmetics & Skincare, 2nd: Alcohol, 3rd: Ladies’ ApparelLower rates are the outcome of strategy, policy and investment, not of factors related to the national environment 50% of countries suffered increased shrinkage throughout different regions, 50% saw improvements THE FIRST WORLDWIDE SHRINKAGE SURVEY

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