Inventory Shrinkage Decreased in 2009, Survey Says

Merchandise losses, known as shrinkage, decreased slightly in 2009, according to a survey released today by the National Retail Federation. The annual National Retail Security Survey, which polled 75 retailers, is a collaborative effort between NRF and the University of Florida.

The National Retail Security Survey found that inventory shrinkage decreased to 1.44 percent of retail sales in 2009, down from 1.51 percent in 2008. Total losses cost retailers $33.5 billion last year, compared to $36.5 billion in 2008, according to the National Retail Security Survey.

“Retailers lose billions to shoplifting, internal theft and other types of criminal activity every year, so it’s encouraging to see these small successes when it comes to shrink rates,” said Joe LaRocca, NRF senior asset protection advisor. “Just as the industry battles organized crime rings on a daily basis, retailers also are faced with the daunting task of protecting their merchandise from everyday criminals because they are greedy and self-serving.”

Most shrinkage last year was due to employee theft, costing retailers $14.4 billion and accounting for 43 percent of total losses, according to NRF. Retailers lost $11.7 billion to shoplifting, which accounted for 35 percent of total losses. Other losses included administrative error ($4.9 billion and 14.5 percent of shrinkage) and vendor fraud ($1.3 billion and 3.8 percent of shrinkage).

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Inventory Shrinkage Decreased in 2009, Survey Says

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