Feature
survey by our organization, carried fashion accessories and power drills. Professor
out in January-February this year In short, no product group or Joshua
among the major retailers in Italy, market segment is immune to this Bamfield,
Germany, the UK and France, trend. Director,
reported that almost 40 percent of Another disturbing trend: The Centre for
retailers had seen an increase in diversification of types of thieves. At Retail
customer shoplifting as a result of one end of the spectrum, many Research
the recession compared to the retailers report that more ‘amateur’ and author
previous six months (Bamfield, thieves are committing crimes in of the
2009). their stores, while there also is more Global
Police sources in the U.S, the UK organized retail crime leading to Retail Theft
and Australia in the same period bulk thefts, and more violence and Barometer
focus attention on a significant intimidation of employees. It seems
increase in recession-related retail likely that employee theft will also
theft. A major rise in shoplifting and be increasing, although at this stage
employee crime has been seen in there is less evidence than for the
the U.S. (news reports from growth in shoplifting. There has
different areas include Dorfman, also been a significant rise in many years. In fact, shrink had fallen
2008; Boyce, 2008; Husty, 2008; and robbery and burglary. to 1.34 percent of retail sales. But
Gary, 2008). In the UK, police figures although the percentage had fallen,
show shoplifting increasing over 12 KEY STATISTICAL TRENDS the financial cost still was huge: The
months in the Northeast by 22 Of course, it helps to have cold, global cost of retail crime (cost of
percent and by 11 percent in hard facts – statistical data – to help merchandise stolen, plus the cost of
London (Retail Bulletin, 2009; BBC, retailers make smarter decisions. loss prevention investments) hit
2009a). In Australia, Silvester (2008) One important source of $112.8 billion, equivalent to nearly
discusses how Australian police quantitative data is the Centre for $230 per family (GRTB, 2008). Keep
services are coping with the rise in Retail Research’s annual Global in mind that this cost is just for one
shoplifting and other business Retail Theft Barometer (GRTB). year, and is paid by retailers and the
crime. Surveys for this year’s study were shopping public.
It is probable that recession, mailed out in May and June, and
unemployment, uncertainty, lower among our goals are to pinpoint WHAT CAN BE DONE ABOUT IT?
incomes and fear of the future may the countries where shrink has been Even though the data pointing to
make some people more willing to most negatively impacted by the higher global shrink in the current
steal or overcome their reservations weak economy, and to identify recession are conclusive, it also is by
about buying stolen goods. Without changes in retail crime patterns no means universal. Specifically, not
seeking to minimize their crimes, compared to other, non- every retailer is experiencing higher
others may feel that the business, recessionary years. shrink; retailers are becoming
national and international failures The GRTB is the most smarter and more sophisticated
which permitted the banking crisis comprehensive global study of retail about how to thwart thieves before
and created a global recession crime costs and shrinkage patterns, they get out the door, and even
devalues honesty and gives them covering 42 countries in the 2009 more importantly, prevent theft
some entitlement or justification to report, which will be released in attempts from taking place.
commit retail theft. November. It is funded by an Perhaps the key first step is for loss
independent grant from Checkpoint prevention professionals, their staffs
DIFFERENT TRENDS IN THEFT Systems Inc., and is prepared by the and their management to
Retailers in several countries have Centre for Retail Research. In last understand that higher theft is not
reported that just as there has been year’s report, we raised the necessarily inevitable, even in
a switch by customers away from possibility that retail crime and difficult economies. The problem
high-cost product lines towards shrink rates could start to rise in with talking in terms of recession-
‘own label’ and cheaper products, 2009, reversing a five-year trend our induced crime is that the phrase
so a wider range of merchandise is data had uncovered previously implies that every retailer will
now being stolen by thieves. Thefts (GRTB, 2008). Clearly, this rise in inevitably experience a growth in
of cheaper cuts of meat, household shrink rates has started taking place, crime that cannot be avoided – any
products, cheese and hair dyes have and most retail loss prevention more than one can avoid a major
all risen just as demand for these managers agree that the problem flood or a cyclone. Yet the GRTB has
items has also increased among of retail crime is greater than any shown that every year a significant
honest shoppers. time in the last 10 years. number of retail businesses improve
Also on the rise is theft of Let’s take a step back: Last year’s their shrinkage and crime figures
expensive items such as razor GRTB – along with other national even when most businesses in their
blades, perfume, DVDs, electronic retail crime surveys – indicated that country suffer adverse results. So
games, Apple phones, Wii video retail crime rates in many countries while current crime trends indicate
consoles, sunglasses, clothing, was lower than it had been for that all retailers now face a major
ISSUE 4 AUGUST 2009 • 23
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42