Employee Theft and Shrinking

It is not surprising that employee theft and shoplifting increases every year.  With online “chat rooms” where shoplifters share their “methods” and the many ways they can get away with shoplifting, it is not surprising the losses across the globe are reaching staggering amounts. 

In 2013, the losses due to shoplifting amounted close to $16 billion globally, a 34% increased over the previous year.  The National Retail Security Survey revealed that in 2015 retail lost an approximate $45 billion due to shrinking, up by more than a billion from the previous year.

What are the expectations for 2016, and 2017? What will the losses amount to this year?

For more about this and other informational topics, follow the links below.


Employee Theft on the Rise According to Latest Retail Survey

Major retailers lost over $44 billion in thefts by customers and employees according to Jack L. Hayes International’s annual Retail Theft Survey.

Wesley Chapel, Fla. — Jack L. Hayes International, a leading loss prevention and inventory shrinkage control consulting firm, has released its 29th Annual Retail Theft Survey.

According to the survey, 438,000 shoplifters and dishonest employees were apprehended in 2016 by 23 large retailers who were able to recover over $120 million from the thieves.

“In 2016, dishonest employee apprehensions increased almost 10%, with the dollars recovered from these dishonest employees up nearly the same amount (9.3%). While shoplifting apprehensions and the dollars recovered from these shoplifters decreased ever so slightly, 0.2% and 0.9% respectively”, says Mark R. Doyle, president of Jack L. Hayes International.

According to the survey, one out of every 27 employees was apprehended for theft from their employer in 2016. The total number, 53,786, is an almost 10% increase compared to last year.

Over $42 million was recovered from dishonest employees in 2016, up 9.3% from 2015.

Survey participants apprehended 384,296 shoplifters in 2016, a slight decrease of 0.2% from the prior year. The average shoplifting case value in 2016 was $203.18, a slight decrease from 2015 when the value was $204.57.


C-stores may suffer from a bundle of cash-related issues, but tech-driven solutions are on the way.

One of the show-stopping numbers from the musical “Cabaret” includes the famous refrain, “Money makes the world go ’round.”

But money also makes the world of convenience retailing complicated. And problems such as cash miscounts, sticky-fingered employees and lack of data around dollars can stop the show for eager-to-perform operators who have to devote valuable time and resources to solving these snags.

To help shine a spotlight on the currency concerns c-store retailers face, CSP and Technomic conducted their seventh-annual cash-management report, commissioned by FireKing Security Group (complete results below). Finalized in March, the study surveyed 175 convenience operators who make or influence choices related to cash flow, banking and cash management in their stores. Thirty-seven percent of respondents operate one store, while 63% operate two or more locations.

Results from this year’s study reveal big concerns—and opportunities—for retailers’ cash-handling practices.


The Amazon Approach to Groceries Won’t Replace Stores

It’s a model that could thrive in dense, affluent areas. Most areas are neither dense nor affluent.

For a certain kind of urban professional, Amazon and Whole Foods are brands that define the consumption of staple goods: the weekly trip to pick up cheese, produce, maybe some pasture-raised organic beef; and the nice UPS man dropping off everything else, from toilet paper to truffle oil. On Friday, those folks learned that they are facing a future of truly one-stop shopping: Amazon.com Inc. plans to acquire Whole Foods Market Inc. for $13.7 billion.

But what about the rest of America? Well, if you happen to work for rival grocery chains, the news is not good. Competitors from Costco to Kroger to Dollar General saw significant chunks knocked off their market capitalization. Other casualties may include Walmart, the $15-an-hour minimum wage (Amazon is aggressively experimenting with cashierless stores), and the rather unique corporate culture that drives Whole Foods.


 

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