Theft Takes a Toll on Retailers' Bottom-Line Profits
More than 438,000 shoplifters and dishonest employees were apprehended in 2016 by just 23 large retailers who recovered more than $120 million from these thieves, according to the 29th Annual Retail Theft Survey by Jack L. Hayes International.
"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", said Mark R. Doyle, President of Jack L. Hayes International. Doyle added, "The seriousness of retail theft is a much greater problem than most customers realize. These theft losses are stealing profits from retailers' bottom-line, which results in consumers having to pay higher prices for goods."
According to the survey:
• Participants: 23 large retail companies with 16,038 stores and more than $370 billion in retail sales (2016).
• Apprehensions: 438,082 shoplifters and dishonest employees were apprehended in 2016, up 1.0% from 2015.
• Recovery Dollars: More than $120 million was recovered from apprehended shoplifters and dishonest employees in 2016, up 2.5% from 2015.
• Shoplifter Apprehensions: 384,296 shoplifters were apprehended in 2016, down up 0.2% from 2015.
• Shoplifter Recovery Dollars: More than $78 million was recovered from apprehended shoplifters in 2016, a decrease of 0.9% from 2015. An additional $163 million was recovered from non-apprehended shoplifters.
• Employee Apprehensions: 53,786 dishonest employees were apprehended in 2016, up 9.9% from 2015.
• Employee Recovery Dollars: More than $42 million was recovered from employee apprehensions in 2016, up 9.3% from 2015.
• One out of every 27 employees was apprehended for theft from their employer in 2016. (Based on more than 1.4 million employees.)
• Shrink: 56.5% of survey participants reported an increase in shrink in 2016, with 21.7% reporting a decrease in shrink, and another 21.7% reported shrink stayed about the same.