Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Retailers Lose Billions to Theft, Fraud and Human Error

In 2018, 35.7 percent of retail inventory shrinkage was caused by shoplifting/external issues, whereas 5.8 percent was as a result of vendor fraud or error.

shoplifter

It isn’t easy to be a brick-and-mortar retailer these days. Aside from the obvious problem of having to compete with thousands of online retailers, you also must deal with shoplifters, dishonest employees and organized criminals taking a bite out of your bottom line. According to a report by the National Retail Federation, U.S. retailers lose 1.33 percent of sales on average to inventory shrink, i.e. a loss of inventory related to theft, shoplifting, error or fraud, costing the U.S. retail economy a total of $46.8 billion in 2017.

A survey among 63 retailers in the spring of 2018, the NRF found that shoplifting by external actors (including organized retail crime) was the biggest source of inventory loss in 2017, accounting for 35.7 percent of shrinkage on average. Internal theft by employees and others was close behind however, which is why most retailers take measures to ensure the integrity of potential employees, such as criminal conviction checks, verification of employment history, personal references and drug screenings.

Infographic: Retailers Lose Billions to Theft, Fraud and Human Error | Statista You will find more infographics at Statista

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.