My PowerPoint executive summary of the 2018 Global Shrink Index. 14 Countries, 73% of global GDP, 80% of global retail sales. Nearly $100 billion in retail losses.

1. © 2018 Retail Solutions. All Rights Reserved.
Where is The Global Shrink?
1

2. © 2018 Retail Solutions. All Rights Reserved.
Global Retail Shrink
$99.56B in losses
2
23%
18%
26%
33%
Shoplifting Dishonest
Employee Theft
Admin/non-
crime Loss
Supplier Fraud
Source: Sensormatic Global Shrink Index, 2018
14 Countries
13 Vertical Markets
“The Sensormatic Global Retail Shrink Index is the culmination of the
largest survey of senior retail executives with a view on, or role in,
loss prevention carried out in recent years.”
~ Planet Retail, 2018
51% LP Respondents
74% Senior Mgmt or Higher
73%
of Global GDP
80%
of Global Retail Sales

3. © 2018 Retail Solutions. All Rights Reserved.
Global Retail Shrink – $99.56B in losses
Source: Sensormatic Global Shrink Index, 2018
USA
APAC
LATAM
21%
18%
25%
36%
USD LOSSES BY REGION (in Billions)
$42.5
23%
17%
22%
38%
$24.04
21%
23%
29%
27%
$3.99
43%
4%
24%
29%
Global
Shrink
Distribution
Europe
USA
APAC
LATAM
Europe
$29.05
24%
18%
29%
29%

4. © 2018 Retail Solutions. All Rights Reserved.
Global Retail Shrink
1.82% of Retail Sales
4Source: Sensormatic Global Shrink Index, 2018
USA
APAC
LATAM
Europe

5. © 2018 Retail Solutions. All Rights Reserved.
Global Retail Shrink
5
Source: Sensormatic Global Shrink Index, 2018
Proportion of shrinkage as a percentage (%) of total annual sales
Global Retail Shrinkage – by Country, 2017-2018

6. © 2018 Retail Solutions. All Rights Reserved.
Top 3 Retail Shrink By Vertical Segment
6Source: Sensormatic Global Shrink Index, 2018
Fashion and
Accessories
Stores
2.43%
Convenience
& Forecourt
Stores
Home,
Garden &
Auto Stores
2.05% 2.05%
USA Europe
Discount
Stores
Convenience
& Forecourt
Stores
Cash &
Carries and
Wholesale
Clubs
2.24%
2.05% 2.01%
Latin America
3.00%
Office
Equipment
Stores
Asia-Pacific
2.62%
2.52% 2.52%
Fashion and
Accessories
Stores
Variety
Stores
Drugstores,
Pharmacies
&
Perfumeries
Leisure
Stores
Consumer
Electronics
Stores
Fashion/
Accessories
Stores
1.98%
Global
1.85% 1.83%
Variety
Stores
Department
Stores
2.13% 2.02%

7. © 2018 Retail Solutions. All Rights Reserved.
Where is the Global Retail Shrink
by Vertical Segment
7Source: Sensormatic Global Shrink Index, 2018
Highest Shrink Rates Across Verticals and Countries

8. © 2018 Retail Solutions. All Rights Reserved.
Loss Prevention Budgets
8Source: Sensormatic Global Shrink Index, 2018
Increasing EAS Investments
Increasing CCTV Investments
Increasing Access Control Investments
25.6%
21.52% 21.43%
Total LP Budgets (% of sales) Respondents
Respondents
39.11%
19.55% 20.98%
Technology Spend (% of LP Budget)
Brazil & Russia spend most on tech
In 10 out of 14 markets budgets increasing
1.5%-
1.99%
0.5%-
0.99%
69.20%
64.29%
62.14%
Shrink Performance Sales Improvement Gross Margin
Global LP Incentives
1%-
1.49%
1%-
4.90%
5%-
9.90%
10%-
24.9%
Likely to invest in RFID in next 6-12 months,
especially in Brazil & Australia

9. © 2018 Retail Solutions. All Rights Reserved.
LP Technology Deployments
9Source: Sensormatic Global Shrink Index, 2018
75.09%
67.32%
65.54%
Stock Room / Storage Entrance / Exits Loading / Delivery
Monitored Areas
47.71%
44.50%
42.43%
Leverage Technology Personnel Attended defeated Tag Inspected
Fitting Rooms
8.93%
23.57%
32.05%
32.32%
32.68%
37.68%
39.29%
44.38%
46.52%
47.77%
48.30%
ORC activity
Ecommerce
Conversion rates
RFID-related data
Markdowns
Non-compliant
returns
Incident reports
Exception-based
reports
Returns to
debit/credit cards
Damaged/removed
EAS Tag
Point of sale (POS)
checkout data
Top LP raw data cited by respondents for data mining
to reduce shrink

10. © 2018 Retail Solutions. All Rights Reserved.
Top 3 LP Technologies by Region
10Source: Sensormatic Global Shrink Index, 2018
88.24%
90.20%
92.16%
Access Control systems
Alarm monitoring
EAS
87.59%
89.46%
89.82%
90.80%
91.16%
Access Control systems
EAS
Alarm monitoring
Public view monitors
CCTV
95.86%
96.50%
97.24%
Video Analytics
CCTV
Alarm monitoring
87.00%
87.83%
88.00%
Video Analytics
CCTV
Alarm monitoring
88.80%
89.60%
91.60%
EAS
CCTV
Public view monitors
Global Top 5
USA
Europe
LATAM
APAC

11. © 2018 Retail Solutions. All Rights Reserved.
EAS Tagging by Region
11Source: Sensormatic Global Shrink Index, 2018
Source Tagging In-store Tagging
29.11% 31.70%
Source Tagging In-store Tagging
34.33% 36.75%
Source Tagging In-store Tagging
31.97%% 34.40%
Source Tagging In-store Tagging
32.42% 35.33%
Global
Source Tagging In-store Tagging
43.84% 41.24%
USA
Europe
LATAM
APAC

12. © 2018 Retail Solutions. All Rights Reserved.
Top Five Retail Countries
12
Source: Sensormatic Global Shrink Index, 2018
“Across the globe, retail business models are being transformed by
engaged and digitally connected consumers.
Best in class retailers are optimizing their physical stores by ensuring that operational
controls are in place for growing problems such as retail shrink.” ~ Tony D’Onofrio
USA CHINA GERMANY JAPAN UK
Retail Shrink % 1.85% 1.96% 1.43% 1.44% 1.88%
Global Shrink Rank 9 7 14 13 8
Retail Shrink $ billion 42.49 13.52 6.28 6.2 7.45
Highest shrink % Shoplifting Shoplifting Shoplifting Employee Employee
Region shrink rank 1 of 1 3 of 5 6 of 6 5 of 5 4 of 6
“Across the globe, retail business models are being transformed by engaged and digitally connected
consumers. Best in class retailers are optimizing their physical stores by ensuring that operational
controls are in place for growing problems such as retail shrink.”
~Tony D’Onofrio, Tyco Retail Solutions CCO
Top Countries by Total Retail Sales

13. © 2018 Retail Solutions. All Rights Reserved.
13
THANKYOU
“Retail Success
is a Team Sport”
~ Tony D’Onofrio
You are the Leaders
to Shape It.
www.tonydonofrio.com