Advertisement

Retail Theft Barometer Finds Shrink Exceeds $112 Billion Worldwide

Shrink remains a significant operational challenge for retailers around the world, with loss rates ranging from 1% of sales in Japan to 1.6% in Mexico and Brazil. U.S. retail shrink has reached 1.5% of sales, according to the 2012-2013 Global Retail Theft Barometer from Checkpoint Systems and Euromonitor International, a global consumer research firm.

In total, shrink cost retailers more than $112 billion worldwide last year, representing an average 1.4% of global sales. Because of resulting expenses transferred to consumers, the cost of shrink to U.S. shoppers averaged $300 per household.

Increases in shoplifting and employee theft boosted loss rates in most countries. A significant challenge in all markets, according to the study, was the growing incidence of organized retail crime, particularly for high-value merchandise such as electronics and pharmaceuticals.

Advertisement

Other most-stolen merchandise included fashion accessories, jeans, footwear, lingerie/intimate apparel, consumer health products and mobile device accessories, such as cases and earphones.  

Retailers that have committed to investments in loss prevention solutions said they managed shrinkage well, and typically reported shrink rates well below their respective country averages. Overall, retailers estimated their future loss prevention investments would increase or stay stable.

“Forward-looking retailers are deploying RFID-based solutions that combine protection with visibility at the item level,” said Per Levin, President and Chief Sales Officer of Shrink Management and Merchandise Visibility Solutions for Checkpoint Systems. “This type of strategic platform, combined with investments in people and processes, opens up new horizons to reduce out of stocks, improve merchandise availability for consumers and increase sales for the retailers.”

The study was based on phone and written survey interviews carried out in 16 countries. The 157 participating retailers operated a total of 160,000 stores representing $1.5 trillion in sales in 2012.

Readers can view a 3-minute video summarizing the data by clicking here. For a complete copy of the 142-page report, send an email to marketingleads@checkpt.com. Retailers interested in participating in the Global Retail Theft Barometer 2013-2014 study may register here.

Featured Event

View the Retail Trendcaster Webinar Series on-demand to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Retail Trendcaster Webinar Series
Days
Hours
Minutes
Seconds

Uncovering What’s Next in Retail

On-Demand Limited Video Series

Q1 is a pivotal time for retail, with experts analyzing holiday sales and forecasting trends. View the full lineup of the Retail Trendcaster video series for insights on consumer spending, AI, personalization, social commerce, and more—helping you focus on what truly matters in 2025.

Brought to you by
Retail TouchPoints
Access Now
Retail TouchPoints is a brand of Emerald X LLC. By clicking the button and submitting information, you acknowledge and agree that your information may be shared with corporate affiliates of Emerald X LLC, and other organizations such as event hosts, speakers, sponsors, and partners. Please read our Privacy Policy and our Terms Of Use for more information on our policies.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: