Major interruption to achieving top sales and revenue. Unfortunately there is an increasing trend in shoplifting – both external and internal. Retail loss prevention tools allow retailers to leverage smart technology to significantly reduce shoplifting and the array of costs associated, such as after-hours stock-takes. Any retailer with a shrinkage total over 1% can implement a basic retail loss control system such as Electronic Article Surveillance (EAS) to add that loss straight back to the bottom line. Depending on your store’s size and turnover, this could mean a figure in the hundreds of thousands.
Retail Shrinkage ControlThe retail arena is also becoming more flexible than ever before, with weekend trading, extended hours and staff turnover causing a growth and minimizing control of store security and shrinkage levels. Lifestyle products have also spiked in recent times with the advent of highly sought designer labels, whether it’s clothing, handbags and smaller accessories such as belts and sunglasses. Also, the burst of popular personal electronics products such as iPhones, iPads and laptops - poached mainly by external shoplifters for their resale value – are also a main target for theft. Retail industries are vitally important to the Australian economy, contributing almost 11% to the nation’s economy when combined with wholesale industries. With shoplifting costing retailers $2.3 billion annually, it's no wonder shoplifters are not only a problem for the success and survival of small businesses, but also a problem for the economy as a whole. Reports from the media and the Institute of Criminology also found that;
- 2-5% loss of sales to shoplifting can amount to a 25% loss in profits.
- Australia is suffering one of the highest increases of shrinkage and theft levels in the world.
- The collapse of many small businesses could be contributed to the inability to identify shrinkage and stem it at its tide.
More alarming is the fact that only 2.5% of retail theft is witnessed and the average shoplifter is
- Middle class
- A regular customer
- And more likely to be a retiree or white collar female than a teenager