NRF: Inventory shrink getting worse
If it seems like more if your inventory is disappearing, you’re probably not imagining things.
According to the 2016 National Retail Federation (NRF) Retail Security Study, conducted in collaboration with the University of Florida, retailers’ inventory shrink averaged 1.38% of retail sales, or $45.2 billion in 2015, up by 3% from $44 billion the previous year.
Almost half (47%) of retailers surveyed reported increases in overall inventory shrink in 2015, with shoplifting accounting for the greatest cause with an average loss of $377 per incident (39%), up nearly $60 from 2014.
Robberies continue to be a rapidly growing expense for retailers, costing an average of $8,180, more than triple $2,465 the previous year. NRF data shows the dramatic rise in loss by robberies in 2015 was driven by an increase in jewelry stores reporting extremely high average losses.
The study found a decrease in the average loss from dishonest employee cases, $1,546.83 to $1,233.77. Although the number of employee apprehensions increased, prosecutions, terminations and civil demands for these type of internal incidents dropped.
When it comes to retailers budgeting for the loss prevention sector, the survey reported that budgets remained flat year-over-year as a percentage of sales. However, the total number of loss prevention personnel per $1 billion in sales increased from 32.5% in 2014 to 37.5% in 2015.
“With a constantly evolving retail landscape, loss prevention becomes more complex every day,” said NRF VP of Loss Prevention Bob Moraca. “LP professionals have been working diligently to find advancements in technology aimed at deterring crime in our industry, sometimes even before it happens – but as our techniques get more sophisticated, so too do the criminals.”
The survey of 80 senior retail loss prevention executives from various sectors was conducted March 22 to April 22, 2016.
No comments:
Post a Comment