During 2002 the UK continued to dominate the European ‘league’ for retail shrinkage caused by waste or theft, but the latest figures published in the European Retail Theft Barometer suggest that other nations may soon steal its unwanted crown.
According to the survey report, sponsored by Checkpoint Systems, shrinkage in the UK retail sector has increased by 5% – costing the sector more than GB pound 19 billion in the past financial year compared with GB pound 18 billion in 2001. The overall loss equates to 1.45% of total retail turnover among the 1,400 retailers questioned across 16 countries, who together account for turnover of almost 492 million euros.
The independent survey was conducted by Professor Joshua Bamfield at the Centre for Retail Research in Nottingham, and highlights the fact that the UK continues to be the worst affected nation with a shrinkage rate of 1.77% in 2002. Norway ‘boasted’ the second highest shrinkage rate (at 1.59%), followed by Greece (1.53%) and France (1.49%).
A notable trend pinpointed by Professor Bamfield is the dramatic increase experienced in certain nation states. In Denmark, for example, retail shrinkage (ie the loss suffered through theft and wastage) has increased by 9.1%. Likewise, Italy saw an increase of 8.5%, along with Ireland – which saw a rise of 8.1%.
Retail security managers should note that favourite items on thieves’ shopping lists continue to be the vulnerable high value and aspirational branded goods including clothing, alcohol and cosmetics. Thieves are also continuing to help themselves to DIY goods, as well as batteries and computer games. The worst affected retail environments continue to be the major department stores and non-food outlets.
“Practically none of these items are essential to the sustenance of life,” said Professor Bamfield, speaking exclusively to SMT. “They are stolen purely for re-sale value, such that the proceeds can be spent on feeding drug addiction.”
The good news is that many of the retailers who responded to the survey have started to use the latest Electronic Article Surveillance systems, while two thirds suggested that source tagging would help curb the problem of theft.
The number of categories where items are now ‘source tagged’ has increased from 19 to 61 in 2002, a massive hike of 221% equating to 4% of total turnover.
However, although 67% of respondents said that source tagging would be “very helpful” in the fight against shrinkage, 42% of retailers surveyed stated that system manufacturers had been less than co-operative in its implementation.
