What every retailer needs to know

For 2009 figures click here

For 2010 figures click here

Theft against shops can account for a major reduction in their profits. We have found a small CCTV system to be the most cost-effective form of prevention for shops of all sizes and type. Tagging is expensive while mirrors are often used more effectively by the shoplifter than the shop assistants. Because a camera does not allow the shoplifter to know whether they are being watched, or recorded, at any particular moment they are uneasy about stealing while under the camera's view. They will, therefore, normally go to another shop where the odds are in their favour rather than being against them or unknown. For the majority of those tempted to shoplift it will provide a very high level of deterrence. Letters we receive from customers indicate that a professionally installed camera system can reduce shoplifting by up to 90%.

Retail Crime Surveys

Retail crime is slashing shops' profits according to two of the largest studies ever conducted into retail crime.

One of these studies examined 54,000 shops which account for just under half of all retail sales in Britain, the other studied retail outlets responsible for over 27% of sales, so no shopkeeper should ignore these results on the basis that, "it isn't relevant to my business".

Survey 1 was the National Survey of Retail Theft and Security and is part of a three-year study.(click here for full survey)

Survey 2 was the Retail Crime Costs Survey by the British Retail Consortium of which many shopkeepers, both small and large, are members.(click here for full survey)

Some of the facts that have come out of the surveys make very sombre reading.

Shrinkage from small retailers (1.91%) is nearly one third higher than from the large retailers (1.49%)

One survey found that average shrinkage of 1.6% results in an average loss of profits of 17.8% (See chart for details of your own retail sector), while the other stated that without the two million crimes suffered by retailers last year profits would have been 25% higher.

Over 97% of shrinkage is undetected by retailers at the time of the crime or subsequently.

For every theft that is detected over 46 go undetected.

Almost 80% of theft is attributable to customers or staff, with customers accounting for the largest amount.

Shrinkage is rising dramatically, estimated to having doubled since 1986.

14,000 shop staff were attacked last year with 106,000 being threatened with violence.

Shrinkage Rates

This table shows the average shrinkage rates and the consequent loss of profits for your sector of retail sales according to those shops in the survey.

Note:
If you are a large business your figures are likely to be lower than the above.
If you are a small retailer your figures are likely to be higher than above.