279,000 shoplifters caught in internal theft in 2018

A survey of 20 of America’s largest retailers has found they apprehended 279,000 shoplifters and dishonest employees in 2018, recovering over $114 million in total from thieves.

Each year, loss prevention consulting firm Jack Hayes International conducts its Annual Retail Theft Survey, with the latest edition indicating the value of both individual shoplifting incidents and employee thefts soared.

Here’s an insight into what the survey found…

The Jack Hayes International Theft Survey

Now in its 31st year, the Jack Hayes Theft Survey interviewed 20 large retail companies, who last year had 13,674 stores between them and over $330 billion in retail sales.

The survey respondents account for a large cross-section of the retail community, encompassing department stores, mass merchants and big box retailers.

Their latest survey found 55 per cent of survey participants experienced an increase in shrink in 2018 compared to the year prior, with 35 per cent reporting a decrease in shrink, and another 10.0 per cent reporting shrink stayed about the same.

Apprehensions down, loss value up

This year’s survey noted retail theft apprehensions were down, but the dollar value of incidents had risen.

In 2018, there were 279,196 theft apprehensions valued at $114,126,134, compared to 316,704 apprehensions in 2017, valued at $110,620,301.

“Theft case values soared in 2018 with the average shoplifting case value ($301.97) increasing 11.8 per cent; the average dishonest employee case value ($1361.37) increasing an amazing 30.1 per cent; and the total average theft case value ($408.77) up 17.0 per cent,” President of Jack L. Hayes International, Mark R Doyle said.

“With the increase in dollar recoveries, retail theft overall continues to be a serious problem for retailers negatively impacting their bottom-line, which results in higher prices to consumers.”

Shoplifting incidents

The number of shoplifters apprehended decreased 11.7 per cent in 2018, with 251,051 shoplifters apprehended by the major retailers.

Meanwhile, over $75 million was recovered from apprehended shoplifters in 2018, a slight decrease of 1.4 per cent from 2017, and an additional $126 million was recovered from shoplifters where no apprehension was made, down 1.4 per cent from 2017.

The cost of shoplifting

The survey noted in 2018, a University of Florida study found total retail losses were approximately $44.2 billion annually, with shoplifting estimated to account for 30 to 40 per cent of total retail loss and the average shoplifting case for all types of retail costing approximately $50.

Therefore, Hayes estimates shoplifting costs retailers:

• $13 – $18 Billion per annum

• $36 – $48 Million per day

• $1.5 – $2 Million per hour

• $25,000 – $33,000 per minute

Employee theft

For the major retailers, internal theft also decreased in 2018 on the year prior but the money recovered from their crimes was significantly higher. 28,145 dishonest employees were apprehended in 2018, down 12.7 per cent from 2017.

Over $38 million was recovered from employee apprehensions in 2018, up a substantial 13.5 per cent from 2017.

In a shocking figure, the survey found one in every 40 employees was apprehended for theft from their employer in 2017.

“Employee theft is perceived by many to be the most severe problem facing industry today,” the survey noted.

“Many people often think of theft and abuse in companies as being isolated acts, which in themselves cost an organization little. Unfortunately, this is untrue. It is also not true that most employees are caught stealing inexpensive items such as ‘pens, pencils, and paper-clips’ from their employers.

“Over the years, Hayes International has witnessed a steady and significant rise in this serious problem. Each year thousands of employees are caught stealing from their employers and co-workers.

“Furthermore, our studies reflect that this group of thieves are being caught stealing far more than a few insignificant supplies.”

You can learn more about protecting your retail outlet from shoplifting here, and securing your store against internal theft here.