Shoplifting increases 5.9%

RETAILING

The economic recession, rising unemployment and loss-cutting provisions were blamed for a significant increase of worldwide retail theft in 2009, including Thailand, according to a survey by Checkpoint Systems.

The level of global retail theft reached US$114.8 billion this year, up by 5.9% from last year's total of $104.5 billion. But in the two years before that, it shrank as a percentage of retail sales, said the survey dubbed the Global Retail Theft Barometer.

Checkpoint Systems is a supplier of retail loss-management systems and it monitored the costs of shrinkage and crimes in the global retail industry between July 2008 and June 2009.

It found the rise in shrinkage occurred in all regions surveyed, with the greatest increase in North America at 8.1%. The Middle East-Africa jumped by 7.5%, Europe by 4.7% and Asia Pacific by 4.2%.

In Thailand, shrinkage as a percentage of sales increased by 4.4% to $1.062 billion or about 35 billion baht, representing 1.66% of retail sales. It was also the second-highest shrinkage rate among nine countries surveyed in Asia Pacific.

Security spending by retailers in Thailand was only 0.13% of sales, the lowest in Asia Pacific. It was lower than the Asia-Pacific average of 0.17% and the global average of 0.31%.

Theft patterns in Thailand were quite similar to other countries and did not change from previous years. Shoplifting was the major source of retail shrinkage, representing nearly half, while employee theft was the second-largest, accounting for one-fourth.

Most stolen merchandise was small, expensive items such as electronics, cosmetics, alcohol and beverages, clothing and jewellery. At the global level, the report said the amount of merchandise stolen by shoplifters and employees represents 72% of the total shrinkage.

Shoplifters stole $48.8 billion worth of goods. Loss prevention works by deterring would-be shoplifters and enabling merchandise recovery.