Shoplifting and Fraud to Cost American Retailers $8.9 Billion Over Christmas Holiday Season
December 03 2012 - 7:04AM
Business Wire
Retailers in the U.S. are expected to lose $8.9 billion over the
holiday season (mid-November through Christmas) as a result of
shoplifting, dishonest employees and vendor or distribution losses,
according to a new study released today by the Centre for Retail
Research. The report, funded by an independent grant from
Checkpoint Systems, suggests that the losses incurred by the retail
industry over this period could add an extra $98 to each family’s
shopping bill.
The report found that American retailers could lose $3.8 billion
through shoplifting, $4.7 billion through employee theft, and $400
million through vendor and distribution losses.
Losses up 4 Percent From 2011
In total, the losses could represent a four percent increase
over the same period last year. The primary contributors to retail
crime are employee theft (53 percent) and shoplifting (42
percent).
Speaking about the results, Professor Joshua Bamfield, director
of the Centre for Retail Research and author of the report, said:
“The Christmas season is an especially attractive time for
criminals. Thieves take advantage of busy stores to steal
high-value, high-demand goods. As a result, retailers face a big
threat from professional and semi-professional thieves, many of
whom steal goods with the intention of re-selling them. Organized
retail crime is a major concern for retailers – especially since
the average amount stolen per incident is much higher than
``normal´´ thefts.”
10 Most Stolen Categories of Goods This Season
The 'Shoplifting for Christmas 2012' report also revealed the
product categories most likely to be stolen over the Christmas
period, which include 1) alcohol, 2) women's clothing and fashion
accessories, 3) toys, 4) perfume and health & beauty gift
packs, 5) electronic devices such as smartphones and tablet
computers, toiletries for men, 6) DVD gift sets and game consoles,
7) food and Christmas decorations, 8) electrical goods including
hardware/DIY, 9) watches and jewelry, and 10) chocolates and
confectionery.
Per Levin, president and chief sales officer for Shrink
Management & Merchandise Visibility Solutions for Checkpoint
Systems, said: “During Christmas, consumers spend 60 percent more
than in other months, and retailers need to ensure the merchandise
is available on the shelves for consumers to buy. We know from
Professor Bamfield’s past studies that there is a clear correlation
between investments in preventive solutions and the rate of
shoplifting. With the right solutions in store, it is possible to
reduce the threat of further losses, increase merchandise
availability and reap the maximum returns during holiday
season.”
About Checkpoint Systems, Inc.
(www.checkpointsystems.com)
Checkpoint Systems is a global leader in shrink management,
merchandise visibility and apparel labeling solutions. Checkpoint
enables retailers and their suppliers to reduce shrink, improve
shelf availability and leverage real-time data to achieve
operational excellence. Checkpoint solutions are built upon 40
years of RF technology expertise, diverse shrink management
offerings, a broad portfolio of apparel labeling solutions,
market-leading RFID applications, innovative high-theft solutions
and its Web-based Check-Net data management platform. As a result,
Checkpoint customers enjoy increased sales and profits by improving
supply-chain efficiencies, by facilitating on-demand label printing
and by providing a secure open-merchandising environment enhancing
the consumer's shopping experience. Listed on the NYSE (NYSE: CKP),
Checkpoint operates in every major geographic market and employs
5,600 people worldwide.
Twitter: @checkpointsys
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