2. Ist Worldwide Shrinkage Survey
The Global Retail Theft Barometer is
the most extensive survey of shrink
ever undertaken
It is the first worldwide survey
The survey was carried out by the
Centre for Retail Research, led by
Professor Joshua Bamfield
The objective is to give retailers
comparative information about the
shrink situation at a global level
THE FIRST WORLDWIDE SHRINKAGE SURVEY
3. Ist Worldwide Shrinkage Survey
Why 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. Ist Worldwide Shrinkage Survey
The GRTB in numbers…
3.600 questionnaires were sent out to Loss Prevention
Managers in 32 countries around the world (Europe, U.S.,
Canada, Australia, India, Japan, Singapore and Thailand)
820 retail companies
138.603 stores
Retailers taking part represented 16% of total European retail
sales turnover, 13% of North American retail sales and 5% of
retail sales in Asia Pacific
Satisfactory response rate of 22.8%
THE FIRST WORLDWIDE SHRINKAGE SURVEY
5. Ist Worldwide Shrinkage Survey
Costs by Countries
31.931 M.€ Countries with the
29.285 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. Consumers
The overall cost of retail crime (stock loss from
retail plus the costs of loss prevention)
represented an annual ‘tax’ on honest consumers
in EUROPE of:
168,51 € per household
(Global cost per household: 208,25 €)
THE FIRST WORLDWIDE SHRINKAGE SURVEY
7. Shrinkage Rates
One-half of the 32 countries suffered
increased shrinkage between 2006 and 2007,
although Asia-Pacific retailers reduced
shrinkage by 4.6%
Globally, the average shrinkage rate
increased by 1.5 %
THE FIRST WORLDWIDE SHRINKAGE SURVEY
8. Global Sources of Retail Shrinkage
Global Source of Shrinkage 2007 Global Sources of Shrinkage 2007 (M€)
THE FIRST WORLDWIDE SHRINKAGE SURVEY
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 floor
THE FIRST WORLDWIDE SHRINKAGE SURVEY
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 Totals
NORTH AMERICA 1.635.687 459,5 € 663.555 1.230,76 € 2.299.242
Percentages
customers/employees 71.4% 28.06% 100%
EUROPE 3.481.490 82 € 69.015 3.778 € 3.550.505
Percentages
customers/employees 98.1% 1.9% 100%
ASIA-PACIFIC 108.720 40 € 10.929 151 € 100%
Percentages
customers/employees 90.9% 9.1% 100%
GLOBAL TOTALS 5.225.897 198 € 743.499 1.443 € 5.969.396
Percentages
customers/employees 87.5% 12.5% 100%
THE FIRST WORLDWIDE SHRINKAGE SURVEY
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. Most Stolen Items
Top 5
N. America Europe Asia-Pacific
Merchandise
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. Security Costs
Security
Revenue Capital
Costs
NORTH 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. Retailers Using Source Tagging Technology
Source 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. EUROPE
25 countries of Western Europe and
Central Europe took part
The number of European retailers
participating was 489
43.276 stores
THE FIRST WORLDWIDE SHRINKAGE SURVEY
16. Main Figures in EUROPE
Shrinkage cost European Retailers a total of
29.285 M€
This year shrinkage has started to rise
The increase cost 454 M€ more than last year.
For consumers, the shrinkage rate represented a
cost equivalent to 61,95 € per head in
Europe
THE FIRST WORLDWIDE SHRINKAGE SURVEY
17. Sources of Retail Shrinkage in EUROPE
CUSTOMERS 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. 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 the
Baltic States (1,42%), the Czech Republic (1,41%) and
Greece, Slovakia and Hungary (all 1,36%).
THE FIRST WORLDWIDE SHRINKAGE SURVEY
20. Cost of Retail Crime in EUROPE
Thefts by Suppliers
Customer Employee Security Loss
and losses in the
Crime Crime Prevention
distribution
14.188 M€ 8.389 M€ 2.019 M€ 7.821 M€
Total Cost of Retail Crime
32.417 M€
THE FIRST WORLDWIDE SHRINKAGE SURVEY
21. Percentage of Retailers Using Source Tagging
Technology
The percentage of large
European retailers in the survey
using Source Tagging was
39.7%
Within the next two years a
further 29.6% of large retailers
expected to introduce it
THE FIRST WORLDWIDE SHRINKAGE SURVEY
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 Childrenswear
8 Accessories
9 Designerwear
10 High cost and specialty food
THE FIRST WORLDWIDE SHRINKAGE SURVEY
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 turnover
The 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 years
The most-stolen merchandise was very similar worldwide
1st: Cosmetics & Skincare, 2nd: Alcohol, 3rd: Ladies’ Apparel
Lower 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
