The Numbers Are Staggering

Nov 1, 2003 12:00 PM

More than $4.7 billion was lost to shoplifting and employee theft in 25 U.S. retail companies surveyed in 2002, with only 2.43 percent of those losses resulting in recovery, according to the annual retail theft survey conducted by Jack L. Hayes Intl., Fruitland Park, Fla., a loss prevention and inventory shrinkage control consulting firm.

According to the survey, for every one dollar recovered, another $40.08 is lost to retail theft.

“Both the number of shoplifters apprehended and the dollars recovered from those apprehensions increased for the second year in a row,” says Mark R. Doyle, Hayes' vice president. “In addition, for the sixth consecutive year, the dollars recovered from shoplifters where no apprehension was made increased significantly over the prior year.”

The annual survey — now in its 15th year — reports on more than 500,000 apprehensions taking place at 25 large retail companies representing 10,243 stores.

Here are some highlights:

• Total shoplifters and dishonest employee apprehensions increased more than 7 percent in 2002, while total dollar recoveries exceeded $114.8 million, an increase of 7.5 percent over the prior year.

• Survey participants apprehended 505,010 shoplifters in 2002, which reflects nearly a 9 percent increase over 2001 shoplifter apprehensions.

• In positive news, dollars recovered from shoplifting apprehensions totaled nearly $58.2 million in 2002, which is an increase of more that 12 percent over 2001 recoveries.

• For the 6th consecutive year, dollars recovered from shoplifters where no apprehension was made increased substantially (nearly 30 percent) over the prior year. That number increased 36 percent in 2001 and 28 percent in 2000.

• Dishonest employee apprehensions fell in 2002 (57,012 total apprehensions vs. 59,478) and the dollars recovered from those apprehended employees decreased 6.6 percent.

• On a per-company basis, one in every 30 employees was apprehended for theft from their employer.

• On a per-person basis, dishonest employees steal about six times the amount stolen by shoplifters.

“Shoplifting and employee theft are serious crimes which continue to negatively impact the bottom-line profits of many retailers,” Jack Hayes says. “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.”

While no one knows the actual negative impact that shoplifting has on the economy and general public, evidence indicates that this crime is more serious than many people believe, the report says.

Based on retail industry data analyses and research over the past two decades, Hayes says it appears shoplifting has steadily grown to the point where 1.2 million shoplifting incidents occur daily within the United States. Hayes conservatively estimates the daily take for shoplifters is between $27 and $36 million.

Total Retail Theft Apprehensions

	2001	2002	#/$	Pct.
Apprehensions	524,731	562,022	37,291	7.11%
Recoveries	$92,167,264	$95,822,630	$3,655,366	3.97%
Avg. Case Value	$175.65	$170.50	- $5.15	-2.93%

Breakdown of Retail Theft Apprehensions
SHOPLIFTING

	2001	2002	#/S	Pct.
Apprehensions	465,253	505,010	39,757	8.55%
Recoveries	$51,859,300	$58,198,969	$6,339,669	12.22%
Avg. Case Value	$111.46	$115.24	$ 3.78	3.39%
Hours Per Apprehension*	31.36	29.22	N/A	-6.82%
Recoveries	$14,619,088	$18,977,882	$4,358,794	29.82%

DISHONEST EMPLOYEES

	2001	2002	#/S	Pct.
Apprehensions	59,478	57,012	-2,466	-4.15%
Recoveries	$40,307,964	$37,623,661	$2,684,303	-6.66%
Avg. Case Value	$677.70	$659.93	-$17.77	-2.62%

Source: Jack L. Hayes Intl.

Hayes points out that shoplifting costs both the retailer and the general public.

Stores suffer as result of lost profits; thus employees lose their jobs as result of cutbacks in staff or layoffs brought about because of the lost profits. Consumers are then penalized by higher retail prices, and the general public pays through increased taxes resulting from lost sales tax revenue on the stolen merchandise.

Hayes further cautions that it is not uncommon to find serious injuries or even death happening to both store personnel and customers in those instances where suspected shoplifters violently resist being apprehended.

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

This month in Access Control

• Targeting The Customer
• Electronic Pedigrees
• One Hero Among Many
• Who? What? When? Where? Why?
• More from September's issue