Major Retailers Lost Over $6 Billion in Revenue to Shoplifting and Employee Theft According to 2011 Annual Retail Theft Survey
Jack L. Hayes International's 24th annual retail theft survey released a report of alarming findings, declaring that 24 large retailers apprehended more than 1 million shoplifters and deceitful employees in 2011. Over $6 billion in inventory and cash was stolen during the year, with only $161 million recovered according to the study.
Mark R. Doyle, President of Jack L. Hayes International, summed up the findings: â€œIn 2011, both apprehensions and recovery dollars from shoplifters and dishonest employees rose; up 5.8% and 11.4% respectively. While shoplifter apprehensions rose 6.0% and dishonest employee apprehensions rose 3.3%, the recovery dollars from these apprehensions was up 13.9% for shoplifters and 5.6% for dishonest employees. It should also be noted that shoplifter apprehensions and recovery dollars have increased 8 of the past 10 years.â€ He went on to suggest that shoplifting and employee theft has become a much bigger problem than retailers and consumers realize in that the increase of theft has propelled higher retail prices and resulted in businesses closing.
A leading loss prevention and retail shrinkage consulting firm, Jack L. Hayes is one of the leading authorizes on this subject. Additional employee theft and shoplifting survey findings are highlighted as follows:
- 1,005,003 shoplifters were apprehended in 2011, up 6% from 2010
- 71,505 dishonest employees were apprehended in 2011, up 3.3% from 2010
- 1 in every 36 employees was apprehended for theft from their employer in 2011
- Fraudulent employees stole 5.9 more in dollars than shoplifters
- $47+ million was recovered from employee apprehensions in 2011, up 5.6% from 2010
- On average, shoplifters stole $113.30 per case, an increase of 7.5% from 2010
As revealed in the survey, theft has had a substantial impact on retailers' annual revenue. Employers can better protect themselves and spot theft cases before they escalate by investing in high-grade IP security cameras designed to capture more detailed images. Identifying areas of theft through video allows retailers to understand exactly where shoplifting occurs. Moreover, mounting a bullet or dome network camera above the cash register keeps employees in check, preventing them from stealing money.