Retail theft is a significant issue in the United States, affecting retailers of all sizes and types. From small independent stores to large chain retailers, no business is immune to the negative effects of retail theft. In this blog post, we will discuss the prevalence of retail theft in the United States and the impact it has on the retailers and consumers.
The cost of retail theft is staggering. According to the National Retail Federation (NRF), retail theft is estimated to cost retailers nearly $95 billion annually in the United States. This represents a significant increase from the previous year, which saw retailers lose $90 billion due to theft. This includes both external theft, which is committed by shoplifters, and internal theft, which is committed by employees. The NRF also reports that the average dollar loss per shoplifting incident is approximately $559, and that retailers are only able to recover 5-15% of their losses through recovery programs and other means.
The impact of retail theft is not limited to financial losses for retailers. It can also result in increased prices for consumers as retailers attempt to recoup their losses. Retail theft can also lead to a decrease in employee morale, as well as increased security measures that can be both expensive and intrusive for customers. Additionally, retailers may be forced to cut back on their inventory or even close their doors altogether if they are unable to withstand the financial impact of retail theft.
One of the most common forms of retail theft is shoplifting, which can take many different forms. This can include simply walking out of a store with merchandise without paying for it, switching price tags on items or concealing items in clothing or bags. Other forms of retail theft include refund fraud, in which they fraudulently obtain refunds for items they did not purchase, and employee theft, in which employees steal merchandise or cash from their employers.
To combat retail theft, retailers often implement a variety of security measures, including physical security units for devices and things like security cameras and electronic article surveillance (EAS) systems. Retailers are also increasing staff training on how to identify and prevent theft. Scorpion has played a critical role in reducing and in many cases, fully eliminating theft for retailers. Our highly experienced team works around the clock to design, develop and deploy our solutions countrywide and in numerous retail locations stretching across many different verticals. Our wide range of innovative solutions are proven to eliminate theft for retailers across the country and around the world.
In conclusion, retail theft is a significant issue in the United States that impacts retailers of all sizes and types and it continues to worsen—With theft rings and Organized Retail Crime becoming more strategic and creative in their tactics, it is hugely important that retailers are working with security partners to help conquer this battle on theft. Reducing retail theft will require a concerted effort but by working together, and utilizing our various innovative solutions, retailers can help reduce the prevalence of retail theft and create a safer, more secure shopping environment for everyone.