Security Magazine logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Security Magazine logo
  • NEWS
    • Security Newswire
    • Technologies & Solutions
  • MANAGEMENT
    • Leadership Management
    • Enterprise Services
    • Security Education & Training
    • Logical Security
    • Security & Business Resilience
    • Profiles in Excellence
  • PHYSICAL
    • Access Management
    • Fire & Life Safety
    • Identity Management
    • Physical Security
    • Video Surveillance
    • Case Studies (Physical)
  • CYBER
    • Cybersecurity News
    • More
  • BLOG
  • COLUMNS
    • Cyber Tactics
    • Leadership & Management
    • Security Talk
    • Career Intelligence
    • Leader to Leader
    • Cybersecurity Education & Training
  • EXCLUSIVES
    • Annual Guarding Report
    • Most Influential People in Security
    • The Security Benchmark Report
    • The Security Leadership Issue
    • Top Guard and Security Officer Companies
    • Top Cybersecurity Leaders
    • Women in Security
  • SECTORS
    • Arenas / Stadiums / Leagues / Entertainment
    • Banking/Finance/Insurance
    • Construction, Real Estate, Property Management
    • Education: K-12
    • Education: University
    • Government: Federal, State and Local
    • Hospitality & Casinos
    • Hospitals & Medical Centers
    • Infrastructure:Electric,Gas & Water
    • Ports: Sea, Land, & Air
    • Retail/Restaurants/Convenience
    • Transportation/Logistics/Supply Chain/Distribution/ Warehousing
  • EVENTS
    • Industry Events
    • Webinars
    • Solutions by Sector
    • Security 500 Conference
  • MEDIA
    • Videos
      • Cybersecurity & Geopolitical Discussion
      • Ask Me Anything (AMA) Series
    • Podcasts
    • Polls
    • Photo Galleries
  • MORE
    • Call for Entries
    • Classifieds & Job Listings
    • Continuing Education
    • Newsletter
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • This Month's Content
    • Advertise
  • SIGN UP!
Security Newswire

Shoplifting Costs U.S. Retailers $40.5 Billion

December 4, 2007

As the holidays approach and more people are out shopping, they may notice some of the new high tech security that retailers are using to battle theft and shoplifting. According to an annual survey conducted by the University of Florida with a funding grant from ADT Security Services, U.S. retailers lost $40.5 billion to theft last year. The survey measures retail shrinkage defined as a combination of employee theft, shoplifting, vendor fraud and administrative error and found that employee and internal theft account for the largest portions of retail theft followed by loses from shoplifting. 

 

“The dollar loss to retailers from theft is staggering,” said Jeffrey Bean, vice president ADT retail sales and operations. “Retailers are looking for more sophisticated and integrated security technology solutions to help limit loses, lower costs and keep prices down.”

 

Conducted annually since 1991, the survey included responses from 150 corporate retail chains and shows that employee theft accounted for $19 billion in losses or 47 percent of the total. Shoplifting accounted for about $13 billion or 32 percent of the total this year. The remainder is due to vendor fraud and/or administrative error. The dollar amount per incident of employee theft is declining, but the dollar amount for shoplifting is rising which is commonly attributed to an increase in Organized Retail Crime (ORC). The survey report shows that the amount of loss due to shoplifting is rapidly approaching the total losses from all personal property crimes, according to the most recent figures by the U.S. Department of Justice -- Bureau of Justice Statistics.         

 

Loss rates were highest in retail sectors including cards, gifts, floral and novelty items. Books and magazines, accessories and supermarket and grocery sectors also showed an above average rate of loss according to the survey. Jewelry, watches and furniture reported the lowest loses.

 

Many retailers already use security cameras, but one of the newest continuing trends is to switch from video tapes to digital recording in stores giving retailers far more flexibility in recording and reviewing events. Remote and live video recording of cameras is another trend allowing retailers to record events centrally at a headquarters location and review them live or at a later time. Point-of-Sale (POS) monitoring is also on the increase allowing retailers to collect and analyze information on every transaction identifying trends and unusual patterns in each store. 

 

Integrating cameras with loss prevention hardware and POS software is another growing trend allowing retailers to connect video images to events as they happen. For instance if a cashier has a “no sale” transaction and opens the cash draw, a camera will record the event. Or, if someone leaves the store with an active security tag on a product, a recording of the event will be saved for review at a later time. This gives the retailer an even clearer picture of events in a store, so actions can be taken to correct the situation, if necessary.

 

“As in last year’s survey, retailers expect to substantially increase the amount of technology they will be using in their stores,” said University of Florida criminologist Richard Hollinger, Ph.D., who has directed the National Retail Security Survey for the last 16 years. “The types of loss prevention systems they indicate that they will be adding all involve newer, more sophisticated technology.”

 

To combat increases in ORC some retailers are working with centralized data bases to record incidents and study the patterns and behaviors of organized retail criminals. The FBI Organized Retail Crime task force maintains a data base and works with retailers.

“There are a number of new technology tools available to help retailers operate more efficiently including intelligent cameras and software that can also help detect criminal activity, ,” said Bean. “The more retailers can limit crime and improve their operations, the greater the benefit to shoppers in the form of lower prices and a safer shopping environment with greater access to more items conveniently displayed in the open.”

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • Security's Top Cybersecurity Leaders 2024

    Security's Top Cybersecurity Leaders 2024

    Security magazine's Top Cybersecurity Leaders 2024 award...
    Top Cybersecurity Leaders
    By: Security Staff
  • cyber brain

    The intersection of cybersecurity and artificial intelligence

    Artificial intelligence (AI) is a valuable cybersecurity...
    Security Leadership and Management
    By: Pam Nigro
  • artificial intelligence AI graphic

    Assessing the pros and cons of AI for cybersecurity

    Artificial intelligence (AI) has significant implications...
    Technologies & Solutions
    By: Charles Denyer
Subscribe For Free!
  • Security eNewsletter & Other eNews Alerts
  • eMagazine Subscriptions
  • Manage My Preferences
  • Online Registration
  • Mobile App
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Security audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Security or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Crisis Response Team
    Sponsored byEverbridge

    Automate or Fall Behind – Crisis Response at the Speed of Risk

  • Perimeter security
    Sponsored byAMAROK

    Why Property Security is the New Competitive Advantage

  • Duty of Care
    Sponsored byAMAROK

    Integrating Technology and Physical Security to Advance Duty of Care

Popular Stories

Internal computer parts

Critical Software Vulnerabilities Rose 37% in 2024

Coding

AI Emerges as the Top Concern for Security Leaders

Half open laptop

“Luigi Was Right”: A Look at the Website Sharing Data on More Than 1,000 Executives

Person working on laptop

Governance in the Age of Citizen Developers and AI

Shopping mall

Victoria’s Secret Security Incident Shuts Down Website

2025 Security Benchmark banner

Events

June 24, 2025

Inside a Modern GSOC: How Anthropic Benchmarks Risk Detection Tools for Speed and Accuracy

For today's security teams, making informed decisions in the first moments of a crisis is critical.

August 27, 2025

Risk Mitigation as a Competitive Edge

In today’s volatile environment, a robust risk management strategy isn’t just a requirement—it’s a foundation for organizational resilience. From cyber threats to climate disruptions, the ability to anticipate, withstand, and adapt to disruption is becoming a hallmark of industry leaders.

View All Submit An Event

Products

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

See More Products

Related Articles

  • Old Newswire Feature Image

    Shoplifting Cost German Retailers $2.7 Billion in 2010

    See More
  • Security newswire default

    Retailers Estimate Shoplifting, Incidents of Fraud Cost $44 Billion in 2014

    See More
  • Shrink costs the world’s retailers $98.6 billion

    See More
×

Sign-up to receive top management & result-driven techniques in the industry.

Join over 20,000+ industry leaders who receive our premium content.

SIGN UP TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing