Annual Retail Security Survey Shows Shoplifting on the Rise
December 06 2005 - 9:00AM
PR Newswire (US)
Retailers spending more on shoplifting prevention measures BOCA
RATON, Fla., Dec. 6 /PRNewswire-FirstCall/ -- The holiday shopping
season is here, and with it comes retailer concerns over
shoplifting and employee theft. According to a new University of
Florida retail study, those concerns are well founded -- with
evidence of losses from shoplifting on the rise. The report also
found that while employee theft is down slightly, it is still the
largest single source of inventory "shrinkage." Inventory shrinkage
-- a combination of employee theft, shoplifting, vendor fraud and
administrative error -- cost the nation's retailers close to $31
billion last year, according to the National Retail Security
Survey, which analyzed theft incidents from 107 of the largest U.S.
retail chains. The annual survey was conducted by the University of
Florida, with a funding grant from ADT Security Services.
University of Florida criminologist Richard Hollinger, Ph.D., who
has directed the National Retail Security Survey for the past 15
years, said results show that in 2004, retailers lost 1.54 percent
of their total annual sales to inventory shrinkage. "Since we first
began conducting this study, the percentage of inventory loss has
declined in a fairly significant way. That's the good news,"
Hollinger said. "The bad news is that because the retail industry
has grown, dollars lost to inventory shrinkage have actually
increased, costing the industry more than $30 billion. This
translates into higher consumer prices for all of us." One of the
key findings from this year's study is the increase in shoplifting,
which accounted for 34 percent of retail losses, up from 30.8
percent in 2000. U.S. retailers lost nearly $10.5 billion in sales
to shoplifting. Hollinger attributed the increase to a new form of
shoplifting called organized retail crime, which involves
shoplifting gangs working as a team to steal large quantities of
merchandise quickly. Rex Gillette, vice president of retail
national accounts for ADT, said the survey shows retailers are
spending more to combat retail theft. "The retail industry today is
very competitive and retailers cannot afford to give up profits to
thieves," Gillette said. "Dishonest employees and shoplifters tend
to go the path of least resistance and will target a retail
location that has not invested in technology to prevent theft."
Gillette said digital video recording systems, public view monitors
and anti-shoplifting systems continue to be popular among loss
prevention professionals. "Many retailers are switching to digital
video systems because they provide higher quality pictures and can
be accessed remotely," Gillette said. About ADT Security Services
Celebrating its 131st anniversary, ADT Security Services, Inc., a
unit of Tyco Fire & Security, is the largest provider of
electronic security services to more than six million commercial,
government and residential customers throughout North America.
ADT's total security solutions include intrusion, fire protection,
closed circuit television, access control, critical condition
monitoring, electronic article surveillance, radio frequency
identification (RFID) and integrated systems. About Tyco
International Tyco International Ltd. (NYSE:TYC)(BSX:TYC) is a
global, diversified company that provides vital products and
services to customers in five business segments: Fire &
Security, Electronics, Healthcare, Engineered Products &
Services, and Plastics & Adhesives. With 2005 revenue of $40
billion, Tyco employs approximately 250,000 people worldwide. More
information on Tyco can be found at http://www.tyco.com/. Contacts:
Ann Lindstrom Dr. Richard Hollinger ADT Security Services
University of Florida (561) 988-3258 (352) 392-1025 ext. 217
DATASOURCE: ADT Security Services, Inc. CONTACT: Ann Lindstrom of
ADT Security Services, +1-561-988-3258, ; or Dr. Richard Hollinger
of University of Florida, +1-352-392-1025, ext. 217, Web site:
http://www.tyco.com/ Company News On-Call:
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