 How
much are You Losing?
How much are You Losing?
According to a national study conducted
by the University of Florida, almost half of inventory shrinkage is
attributed to employee theft. The study discovered further that a
combination of four sources of inventory shrinkage is costing the retail
sector billions of dollars annually.
University of Florida's Security Research
Project, which is housed by the Department of Sociology and the Center
for Studies in Criminology and Law, conducted the 2001 National Retail
Security Survey and determined that along with employee theft, three
other factors contributed to the staggering loss: shoplifting,
administrative error, and vendor fraud.
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Assuming gross annual retail sales of $5
million dollars, the study's shrinkage rate can be factored in to
forecast the loss in dollars: |
- Supermarkets: $24,400
- Drug Stores: $37,600
- Discount Stores: $37,200
- Home & Garden: $27,600
- Music & Video: $22,600
- Department Stores: $125,200
- Gift & Novelties: $53,200
- Sporting Goods: $34,800
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The study took a cross
section of the retail industry and concluded the following shrinkage
rates: |
- Supermarkets: 1.42%
- Drug Stores: 1.88%
- Discount Stores: 1.86%
- Home & Garden: 1.38%
- Music & Video: 1.13%
- Department Stores: 6.26%
- Gift & Novelties: 2.66%
- Sporting Goods: 1.74%
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