If you search Google for — how much is lost due to theft from retailers per year
you will get a list of articles with headlines that say, retailers loose $44billion a year to theft — which isn’t true. In fact, that’s not even close.
What the NRF report said was — Shoplifting and organized crime have surpassed employee stealing as the biggest sources of retail theft for the first time in 24 years, a new survey found. A report Wednesday from the National Retail Federation said businesses lost an estimated $44 billion in 2014 because of shoplifting, fraud or administrative error.Jun 24, 2015
Shoplifting – Fraud — or Administrative Error.
These three aren’t as unrelated as you might imagine. They are the trifecta of Shrinkage. Thus, it is $44 billion lost in Shrinkage per year.
Paperwork discrepancies between the physical inventory and the inventory numbers on the books, also known as Paper Shrink, account for roughly 12 percent of all retail shrinkage. These discrepancies usually result from erroneous pricing or counting, misdirected shipments or loading dock errors.
Walmart says that it loses about $3 billion every year from theft, or 1% of its $300 billion in revenue, Reuters reports. Jun 5, 2015
So, most of that loss to Shrinkage is related to management, execution and planning from the administration level. Not due to kids stealing Snickers bars. Not due to theft.
Why the focus? Because the word theft has a Valenence of 2.66. Error has a 3.36
Theft has no focus. No one is a theif, even if they are. However, managers wear bright helpful tags telling us their name, and area of responcibility.
When the economy is hemoraging $44 billion, you don’t want to be wearing a retail tag on your shirt.