How Much Money Do Retailers Lose Due To Shoplifting?

Retail Theft Is Rising: Here'due south What You Demand To Know Now About Loss Prevention

If your concern experienced a significant uptick in retail theft during the pandemic, you're not alone.

According to the National Retail Federation (NRF), 75 percent of companies reported an increase in Organized Retail Crime (ORC) in the past year.

While the COVID-19 pandemic exacerbated the problem, research shows that an increase in ORC will keep for the foreseeable hereafter. Reacting to this problem subsequently retail theft has occurred is costly, time-consuming, and ineffective. That's why prevention is key.

To get alee of this problem, it's important to understand why ORC is increasing, what it looks like today, and which loss prevention techniques are nigh effective. At VIRA Insight, we accept over two decades of experience outfitting retail spaces with sleek, effective, customizable loss prevention solutions.

Our loss prevention systems are constructive because they are informed by research and experience. Today, we desire to share what we've learned about retail theft with you then that you can make smart decisions to protect your business organisation. Here'due south what yous should know now about loss prevention:

RETAIL THEFT IS AN EXPENSIVE Problem

According to the NRF, retailers lose an average of $719,548 for every $one billion in sales to ORC. Even earlier the pandemic fabricated this problem worse, 22 of the largest retailers reported losing $61.7 billion due to theft, fraud, and other retail shrinkage in just one year (2019).

One time retail theft occurs, recovering financial loss is extremely hard. In fact, just 2.ix percent of all retail theft losses are recovered by retailers, resulting in massive shrinkage. This is why, when it comes to saving your business money, retail theft prevention is key.

WHY RETAIL THEFT INCREASED DURING THE PANDEMIC

During the COVID-xix pandemic the nature of retail theft changed equally it increased. Widespread financial hardship led to an increase in necessity-driven theft. As shoppers became more motivated by need, theft transitioned from targeting expensive items similar electronics to shoplifting essential items like food, products for infants, and household commodities. Unsurprisingly, essential retailers were striking especially hard, with shoplifting in that sector increasing by 8.vi percent.

Concluding twelvemonth information technology was necessary for retailers to adapt their businesses to comply with COVID-19 protocols. Only in many cases, the same protocols that were designed to keep customers condom also enabled thieves. The prevalence of masks allowed for more anonymity from security camera footage and staff. Additionally, pandemic protocols occupied staff attention, making them less likely to focus on theft prevention.

AS COVID-19 EASES, RETAIL THEFT Volition Non

During the pandemic, many retailers shifted to or increased the use of self-checkout stations. Having invested in that technology and infrastructure, those retailers are expected to proceed to rely on contact-free checkout post-pandemic.

While cocky-checkout has many advantages, it also results in greater levels of loss. According to a 2018 Efficient Consumer Response survey, retailers with self-checkout report losses from 33 percent to 147 percent college than stores with fixed cocky-checkout.

Fifty-fifty equally mask use becomes less ubiquitous and the economy and chore market recover, higher levels of retail theft are expected to remain. Potential connected boldness from shoplifters may proceed even as they shift back to targeting more expensive products similar designer items, loftier-end beauty products, and electronics.

HOW TO PROTECT AGAINST RETAIL THEFT

Investing in preemptive measures to prevent retail theft up forepart is fundamental. At VIRA Insight, nosotros offer a variety of flexible, customizable solutions designed to maximize protection against ORC. From anti-sweep hooks and lockboxes to full security cases, our Fortress serial systems tin can be tailored to arrange your concern' specific needs, helping you stop retail thefts and related financial losses before they happen.

Source: https://virainsight.com/retail-theft-is-rising-heres-what-you-need-to-know-now-about-loss-prevention/#:~:text=RETAIL%20THEFT%20IS%20AN%20EXPENSIVE,just%20one%20year%20(2019).

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