$4.7 Billion Lost to Retail Theft in 2004

Dec 1, 2005 12:00 PM

More than 750,000 shoplifters and dishonest employees were apprehended in 2004 by just 27 U.S. retail companies, according to the 17th Annual Retail Theft Survey conducted by Jack L. Hayes International.

The 27 retail companies lost over $4.7 billion to shoplifting and employee theft in 2004.

“The losses are staggering and continue to amaze us, especially the shoplifting statistics over the past several years”, says Mark R. Doyle, president of Jack L. Hayes International. “Both the number of shoplifters apprehended and the dollars recovered from those apprehensions increased for the fourth straight year.”

Both the number of dishonest employees apprehended and the dollars recovered from those apprehensions also increased in 2004, reversing a three-year trend, Hayes adds.

“These crimes continue to hurt our economy, costing consumers higher prices at the cash register and causing a loss of jobs when retailers are forced to close stores or even go out of business.”

The 27 large retail companies represent 12,908 stores with combined 2004 annual sales in excess of $441 billion.

Here are other significant findings:

• Total apprehensions of both shoplifters and dishonest employees in 2004 increased 4.78 percent (752,629 vs. 718,264) over the prior year.

• Total dollar recoveries from apprehended shoplifters and dishonest employees exceeded $112 million, an increase of 3.26 percent over 2003's recoveries.

• Only 2.74 percent of total retail theft losses resulted in a recovery. This means for every $1 recovered by the surveyed companies, $36.47 was lost to retail theft.

• For the fourth straight year, both the number of shoplifters apprehended (689,340) and the dollars recovered from those apprehended shoplifters ($70.0 million) posted an increase.

• One in every 27.8 employees was apprehended for theft from their employer.

• Both the number of dishonest employees apprehended (63,289) and the dollars recovered during those apprehensions ($42.4 million) increased in 2004, reversing a three-year trend.

• On a per-case average, dishonest employees steal approximately 6.6 times the amount stolen by shoplifters ($671.03 vs. $101.60).

Total Retail Theft Apprehensions

			Difference
	2003	2004	#/$	Pct.
APPREHENSIONS	718,264	752,629	34,365	4.78%
RECOVERIES	$108,953,770	$112,508,245	$3,554,475	3.26%
AVG. CASE VALUE	$151.69	$149.49	-$2.20	-1.45%
SOURCE: JACK L. HAYES INTERNATIONAL, 17TH ANNUAL RETAIL THEFT SURVEY

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