Nearly $2 Billion Lost to Retail Theft in 2003

Dec 1, 2004 12:00 PM

Nearly $2 billion was lost to shoplifting and employee theft in just 24 U.S. retail companies in 2003, with only 4.6 percent of those losses resulting in a recovery, according to the 16th Retail Theft Survey conducted by Jack L. Hayes International consulting firm.

“The losses continue to amaze us, especially the shoplifting statistics over the past few years,” said Mark R. Doyle of Hayes International. “For the third year in a row, both the number of shoplifters apprehended and the dollars recovered from those apprehensions increased.”

According to the survey, for every one dollar recovered at one of the 24 surveyed companies, another $20.76 is lost to retail theft.

“While employee theft apprehensions and recovery dollars declined, these 24 retailers apprehended 35,532 of their employees, with an average case value of over $660,” Jack Hayes says. “These type losses 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 24 large retail companies represent 8,130 stores with combined 2003 annual sales in excess of $159 billion.

Some other survey results include:

• Total apprehensions of both shoplifters and dishonest employees in 2003 increased 1.88% (372,488 vs. 365,617) over the prior year.

• Total dollar recoveries from apprehended shoplifters and dishonest employees exceeded $69 million, an increase of 1.66% over the prior year.

• Only 4.6 percent of total retail theft losses resulted in a recovery.

• One in every 28.2 employees was apprehended for theft from their employer.

• For the third year in a row, dishonest employee apprehensions and the dollars recovered from those apprehended employees decreased (7.74% and 3.84% respectively).

• On a per-person basis, dishonest employees steal approximately 4.8 times the amount stolen by shoplifters ($661.37 vs. $137.76).

More on the survey can be found at www.hayesinternational.com

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