Survey: Retail shrink rises in 2019; only 6% of losses recovered

Retail theft due to shoplifting and dishonest employees remains a serious problem for retailers.
 
Two-thirds (66.7%) of retailers participating in the 32nd Annual Retail Theft Survey conducted by Jack. L. Hayes International reported an increase in shrink in 2019, with 23.8% reported a decrease. Another 9.5% reported that shrink stayed the same.

Overall apprehensions increased 2.44%, with recovery dollars from those apprehensions up 4.88%. Shoplifting apprehensions and recovered dollars increased 3.04% and 3.50% respectively, with recovery dollars from shoplifting incidents without an apprehension increasing by 11% (to $176 million) over the prior year. 

The survey also found that for every $1.00 recovered by surveyed companies, $14.75 was lost to retail theft, resulting in only 6.3% of total retail theft losses resulted in a recovery.

“Overall, retail theft continues to be a serious problem for retailers negatively impacting their bottom-line, and creating more out-of-stocks and higher prices to the consumer,” said Mark R. Doyle, president, Jack L. Hayes International.

Additional highlights from the survey are below.

• Apprehensions: 348,036 shoplifters and dishonest employees were apprehended in 2019, up 2.44% from 2018.

• Recovery Dollars: Over $136 million was recovered from apprehended shoplifters and dishonest employees in 2019, up 4.88% from 2018.

• Shoplifter Apprehensions: 315,095 shoplifters were apprehended in 2019, up 3.04% from 2018.

• Shoplifter Recovery Dollars: Over $90 million was recovered from apprehended shoplifters in 2019, an increase of 3.50% from 2018. 

• Employee Apprehensions: 32,941 dishonest employees were apprehended in 2019, down 2.93% from 2018. 

• Employee Recovery Dollars: Over $45 million was recovered from employee apprehensions in 2019, up 7.75% from 2018.

Twenty-one large retail companies — ranging from department stores and mass merchandisers/big boxes to specialty apparel and supermarkets —  with 18,999 stores and more than $510 billion in retail sales participated in the survey.