Study puts annual cost of theft at $10 billion

Jan 1, 1997 12:00 PM, Staff

Shoplifting is a year-round, everyday problem that costs United States retail businesses nearly $10 billion annually, reports a national retail industry study. The 1996 Retail Theft Trends Report (RTTR) survey was conducted by Loss Prevention Specialists, with funding from Sensormatic Electronics Corp.

Among the study's highlights: Across all markets, items most frequently confiscated from shoplifters are tobacco products (in particular) and athletic shoes and apparel (primarily logo and brand name apparel, designer jeans and lingerie). March and December experience the most theft at 10 percent of the yearly total, which is only 3 percent higher than in January - the lowest month. The figures suggest shoplifting is a year-round activity.

Some 17.69 percent of shoplifting apprehensions are made on Saturday, the top day of the week. But Sunday, the least frequent day, is only 5 percent lower. Every day is a theft day.

More males (55 percent) than females (45 percent) are reported as shoplifters. Most reported shoplifters (62 percent) are adult (18 years and older). However, while juveniles account for approximately 26 percent of the U.S population, they account for 38 percent of apprehended shoplifters. A disparity is even more striking in the 13- to 17-year-old segment (7 percent of the population and 31.5 percent of detainees). Of all apprehensions, 57 percent occur between noon and 6 p.m.Companies with enhanced detection capabilities such as store detectives and electronic detection systems apprehend the most shoplifters.

The study's findings were compiled from 171,141 shoplifting incidents reported by 171 retail chains. Participating retail companies provided the data for the RTTR database using a case report form. The data was completed by company employees following apprehension of suspected shoplifters. A significant finding in this year's survey is the increased percentage of juvenile shoplifters relative to their numbers in society, says Read Hayes, CPP, and security consultant/criminologist for Loss Prevention Specialists, who compiled the report. Even though at first glance, adults appear to make up the highest percentage of shoplifters. By comparison, juvenile shoplifting is disproportionately high. For this reason, retailers need to pay particular attention to the ratio of adults to juveniles in their stores to best combat the problem.

As the study reveals, shoplifting is an everyday problem, affecting all types of retailers, says Jerry Kendall, vice president of North American retail operations for Sensormatic. For a free executive summary of the RTTR survey, contact Sensormatic Electronics Corp. at (800) 368-7262. A more comprehensive RTTR research report is available for a fee of $25 from Read Hayes, CPP, Loss Prevention Specialists, 5471 Lake Howell Road, Suite 236, Winter Park, FL 32792.

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