Retailers in the United Kingdom are expected to lose more than a billion pounds over Christmas from shoplifting, dishonest staff and vendor or distribution losses. That is according to a new study released today by the Centre for Retail Research. The report, funded by a grant from retail loss product company Checkpoint Systems, suggests that the losses incurred by the retail industry over this period could add an extra £38.09 to each UK family’s shopping bill.
The report found that UK retailers could lose £522m through shoplifting, £431 million through employee theft, and £47 million through vendor and distribution losses. In total, the losses could represent a 3.4 per cent per cent increase over the same period last year.
Speaking about the results, Professor Joshua Bamfield, Director of the Centre for Retail Research and author of the report, pictured, said: “The Christmas season is an especially attractive time for criminals. Thieves take advantage of busy stores to steal high-value, high-demand goods. As a result, retailers face a big threat from professional and semi-professional thieves, many of whom steal goods with the intention of re-selling them. Organised retail crime is a major concern for retailers – especially since the average amount stolen per incident is much higher than ‘normal’ thefts.”
The ‘Shoplifting for Christmas 2012’ report also suggested the product categories most likely to be stolen over Christmas: which included alcohol, women’s clothing and fashion accessories, toys, perfume and health and beauty gift packs, electronic devices such as smart phones and tablet computers, toiletries for men, DVD gift sets and game consoles, food and Christmas decorations, electrical goods including hardware/DIY, watches and jewellery, and chocolates and confectionery.
Per Levin, President and Chief Sales Officer for Shrink Management and Merchandise Visibility Solutions for Checkpoint Systems, said: “During Christmas, consumers spend 60% more than in other months, and retailers need to ensure the merchandise is available on the shelves for consumers to buy. We know from Professor Bamfield’s past studies that there is a clear correlation between investments in preventive solutions and the rate of shoplifting. With the right solutions in store, it is possible to reduce the threat of further losses, increase merchandise availability and reap the maximum returns during holiday season.”
Overall, the study found that the cost of shoplifting and fraud to retailers over the Christmas period would be 5.8 billion euros in Europe, and 8.9 billion dollars in the United States.
