A new report reveals that 1,000-plus daily incidents of shoplifting, food waste and soaring internal theft are costing UK retailers almost £11bn annually – the highest of any country in Europe.
According to the ‘Retail Security in Europe. Going beyond Shrinkage’ report, conducted by Crime&tech with the support of Checkpoint Systems, shrinkage cost retailers £10.96bn annually in 2017. The value includes external and internal theft, but also administrative errors, non-compliant use, waste, expired goods and damaged cold items and goods.
Stores were found to be spending a total of £3.09bn on measures to prevent losses, while the study found that shrinkage costs the UK retail industry £7.86bn.
UK retailers in the grocery sector were found to be the hardest hit by shrinkage, costing £4.4bn, followed by department stores (£2.1bn per year) and clothing retailers (£783m per year).
The top five stolen items by value in food retail were alcoholic drinks, cheese, meat, sweets and canned fish.
The most common criminal causes of shrinkage in the UK is shoplifting, followed by robberies and burglaries. Half of UK retailers surveyed thought shoplifting was increasing while 17% said it was decreasing and 33% believed the rate was stable.
Mike French, Business Unit Director of Checkpoint Systems UK commented: “Shrinkage in the UK is the highest of any country in Europe and retailers need to take urgent action to reduce this if they are to remain competitive and profitable.”
He added: “The new Retail Security in Europe study will help retailers to assess and define their own loss prevention strategies while reducing theft and improving the customer experience.
“The fact that shrinkage, if converted to turnover, would represent the fourth largest retailer in Europe should not be taken lightly. It’s extremely worrying that the actions of the few can financially impact businesses and employees. In light of today’s tough retail climate, it’s more important than ever for retailers to take note of the findings and take the necessary actions to reduce their losses.”
