India most susceptible to shoplifting,employee theft: Study

“While North America and Europe make up 40 per cent and 38.4 per cent,respectively,of global shrinkage,the highest country-specific rates were found in India,Morocco and Mexico,” the survey added.

During the period under review,the level of global retail theft reached USD 114.8 billion,a significant increase of 5.9 per cent over last year’s total of USD 104.5 billion.

The survey that covered 41 countries was conducted by Centre for Retail Research and funded by Checkpoint systems.

“While most businesses have suffered as a result of the recession,few have been as hard-hit as the retail industry,” Checkpoint Chairman,President and CEO Rob van der Merwe said.

The survey further highlighted that the global costs of retail crime (the charge that crime imposes on retailers) was a whopping USD 120.5 billion including loss prevention costs.

Out of this shoplifting losses accounted for 40.5 per cent,employee theft (33.8 per cent),supply chain losses (5.3 per cent) and loss prevention costs (20.3 per cent).

The survey further highlights that the increase in shrinkage was largely due to recession.

“There is some criminological evidence that crime rises as unemployment rises and there are indications that crime is a much more important issue for retailers now than two or three years ago,” Centre for Retail Research Director Joshua Bamfield and author of the study said.

Amid recessionary environment,shrinkages saw an increase in all regions surveyed,with the greatest rise in North America (8.1 per cent),Middle East-Africa (7.5 per cent),Europe (4.7 per cent) and Asia Pacific (4.2 per cent).

Out of the 41 countries surveyed,38 saw an increase in losses of retailers,the survey which covered North America,Europe,Asia-Pacific,Latin America,Middle East Africa,China,Morocco,Taiwan and Turkey said.

While shrinkage has increased,security spending has decreased almost everywhere. In developed markets,like North America and Europe,loss prevention expenditure tends to be higher than emerging markets.

For Asia-Pacific the average for security spending was 0.17 per cent,lowest among all the regions surveyed. Whereas,the average amount stolen or admitted by shoplifters was USD 69.27,average employee theft was USD 376.15 compared to USD 1,889.02 of global figure,the survey added.