"This year's decrease in retail theft is evidence retailers are implementing and updating loss prevention strategies in order to reduce shrinkage," said University of Florida criminologist Richard Hollinger, who conducted the survey. "Furthermore, the decrease can be attributed to the enhancements and improvements in both loss prevention technologies and programs."
The study was funded by a grant from ADT Commercial Security, soon to be Tyco Integrated Security.
Of the four categories of shrink or losses, employee theft constitutes the largest portion at 43.9 percent or approximately $15.1bn. Shoplifting, at 35.7 percent or $12.3bn, is the second-largest area of lost profits with administrative error and vendor fraud accounting for the balance.
"The decrease in retail theft can be a direct result of the widespread investment in technologies and integrated solutions by retailers," said Michael Creedon, vice president, National Accounts for Retail at ADT Commercial Security. "Clearly security solutions are proving to be a solid investment and have saved retailers billions of dollars in losses every year. There are a number of technologies and services available today that can help retailers continue to prevent theft, decrease shrinkage and track merchandise effectively."
According to Creedon, retailers are relying more on efficient inventory and traffic technologies, such as radio frequency identification tags, advanced video surveillance systems and analytics and more robust data collection and reporting solutions. New and enhanced technologies also allow retailers to better understand the consumer and the ever changing buying patterns along with trends in merchandise theft.
