Front Lines
news/analysis
THE LOSS WORLD
THE UK IS THE CRIME CAPITAL OF EUROPE AS
RETAIL THEFT SOARS TO £4.1 BILLION, ACCORDING
TO THE GLOBAL RETAIL THEFT BAROMETER
Professor Joshua Bamfield
THE UK is the retail crime turnover, the UK still boasts dishonest members of staff, hardware / DIY merchants
capital of Europe according to higher than European-average with 34% of all shrinkage (2.3%) and department stores
the Global Retail Theft shrinkage levels (1.27%). This originating from within. (2.1%). Meanwhile, it has
Barometer published by the is bad news for hard-pressed The largest source of loss been good news for the
Centre for Retail Research. consumers who end up generated by fraudulent supermarkets, jewellers and
In the last year, retail crime bearing the brunt of this employees across Europe was footwear / sports retailers, all
topped £4.1 billion, ‘social scourge’, which is the merchandise theft, costing £2 of whom have successfully
highlighting the hidden equivalent of criminals taxing billion and accounting for achieved a decrease in
impact that the credit crunch is every household in Britain by 30.4% of all internal fraud. shrinkage levels by 5.0%,
having on the high street. This approximately £189 a year. Cash, coupons and vouchers 4.1%, 3.0% respectively.
means that the UK is officially As economic doom and represented the second most Expensive, branded products
the worst nation in Europe for gloom casts a dark shadow stolen items, costing retailers that are in high-demand are
shoplifting and third in the across the country and £1.8 billion and making up top of thieves shopping lists
world behind the USA and disposable income reaches an 27.2% of total internal fraud. this year according to the
Japan. all-time low, it comes as no Refund fraud and false price Global Retail Theft Barometer,
The Barometer – the largest surprise that light-fingered markdowns, the third largest commissioned by Checkpoint
report of its kind in the world customers and employees have source, cost retailers £1.5 Systems. The most frequently
and written by Professor been looking to unlawful billion whilst collusion and stolen products, in order, are
Joshua Bamfield – surveying means in a bid to get their large financial frauds came in alcohol (specifically whisky,
920 of the leading hands on the most desirable at £825 million and £543 vodka and champagne),
international retailers – retail goods. While in the UK, million respectively. cosmetics and skincare,
theft or ‘shrinkage’ (stock loss external theft – made-up of Against the backdrop of a womenswear, perfumes and
from crime and wastage) has opportunistic shoplifters and troubled economy and with fine fragrances, razor blades,
posed a serious problem for organised gangs – accounted margins squeezed ever-tighter, DVDs and games,
the UK over the last 12 for 42.6% of total shrinkage, loss from theft has been a childrenswear, accessories,
months, with £4 billion worth most worrying, was the tough cross to bear for designer wear, high-cost and
of stock going missing during amount lost through retailers’ financial performance. speciality meat and fish,
this period alone. Despite this employee theft. After Ireland, This is not surprising given that including fresh meat, ham and
declining slightly in the last the UK ranks as the worst in across Europe, retailers have seafood and cheese.
year to represent 1.3% of sales Western Europe for theft by reduced spend on security and “In the current economic
loss prevention this year by climate, retailers can’t afford
4.9% compared to 2007. to be blasé about security,”
Nevertheless, £5.5 billion was commented Neil Matthews,
invested in security and loss Vice-President of Checkpoint
prevention by European Systems NCE. “Inevitably, the
retailers, equivalent to 0.34% worse off people are, the
of total retail sales in the year more likely they are to turn to
to June 2008. Of this, the crime. It’s not rocket science,
amount spent by UK retailers but it is essential that retailers
on security measures came to have the right controls in place
£838 million, third only behind to ease a pressure that is only
France and Germany. likely to get worse as we go
This year, off licences and into 2009. We’re already
liquor stores were the biggest witnessing the effects of
losers in the fight against retail budget reductions and the
crime with shrinkage as a social and business
percentage of turnover implications are huge.
increasing by 6.3%. Increases For further information
were also reported by about the Global Retail Theft
electrical goods and computer Barometer please visit www.
retailers (3.6%), discounters / globalretailtheftbarometer.com.
cash and carry stores (2.6%), RF
04 • RETAIL FRAUD
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