Retailers already struggling with a pullback in consumer spending now face the added problem of increased theft, from minor shoplifting to organized crime rings, according to the National Retail Federation (Washington).

Preliminary results from the NRF’s National Retail Security Survey show total retail losses of $36.5 billion in 2008, up $1.7 million over the previous year. Retail shrinkage was 1.52 percent of retail sales in 2008, up from 1.44 percent in 2007.

Criminals have found more ways to manipulate and corrupt the retail industry, according to criminology professor Dr. Richard Hollinger, lead author of the study. “Many retailers are being forced to decrease their current expenditures because of the state of the economy and the cutback in consumer spending, which leaves new opportunities for thieves to take advantage of companies,” said Hollinger, who presented study findings at the NRF’s Loss Prevention Conference and Expo in June.

Employee theft accounted for 44 percent of retail losses, totaling $15.9 billion. The survey said 14 percent of those cases involved employees working with outside help.

Shoplifting accounted for a $12.7 billion loss. Administrative error and vendor fraud led to $5.4 billion and $1.4 billion losses, respectively.
“While the economy plays a role in the amount of shoplifting around the country, these crimes are mostly the case of greed instead of need,” said Joe LaRocca, senior asset protection advisor to the NRF. “People aren’t stealing to feed their families; they’re stealing iPods, handbags and other discretionary items. Retailers are not tolerant of this activity and are prosecuting those who are blatantly breaking the law.”

The annual survey is a collaborative effort between NRF and the University of Florida. 

In a related NRF study, 92 percent of respondents said their stores had been victims of organized retail crime during the past year, up 8 percent from 2008. According to NRF’s fifth annual “Organized Retail Crime Survey,” 73 percent of retailers reported an increase in organized retail crime over the past 12 months, up 11 percent from 2008. The study queried loss prevention executives from 115 companies, including department, discount, drug, grocery, restaurant and specialty retailers.

Information and download options for both surveys are available at www.nrf.com. [September 2009 PET AGE]