Retail Industry1992 to 2013 TrendsRetail & EthicsDr. Ayad's Research InterestsExcerpt from The Inclusive LeaderDr. Ayad's QuotesAbout Dr. AyadContact MeRecommendationsPhotos
Success in Retail
Dedicated to Retail Employees, Managers, Executives, and Academics
E-Retail
Retail Math
Shrinkage
Bankruptcies
Simplicity & Complexity of Big Box Retailing
Shrinkage

In June 2017, National Retail Federation and University of Florida National Retail Security Survey, reported an average shrink rate of 1.44 percent of retail sales, or $48.9 billion in 2016. Specifically, retailers surveyed estimate that shoplifting accounted for the largest part of reported shrink in 2016 – 36.5 percent, followed by employee/internal theft (30%), administrative and paperwork errors (21.3%), vendor fraud or error (5.4%) and unknown loss (6.8%).  

Shrink rate as a percent  of Sale

2016

2015

2014

Average

1.44%

1.38%

1.38%

Median

1.20%

1.21%

1.18%

 

Shrink by type

2016

2015

2014

Shoplifting/external (including ORC)

36.5%

39.3%

38.0%

Employee  theft/internal

30.0%

35.8%

34.5%

Administrative and paperwork error

21.3%

16.8%

16.5%

Vendor fraud or error

5.4%

4.8%

6.8%

Unknown loss

6.8%

7.2%

6.1%

 In June 2015, National Retail Federation and University of Florida National Retail Security Survey, reported retail inventory shrink at 1.38 percent of retail sales, or $44 billion, in 2014.  Specifically, retailers surveyed estimate that shoplifting accounted for the largest part of reported shrink in 2014 – 38 percent, followed by employee/internal theft (34.5%), administrative and paperwork errors (16.5%), vendor fraud or error (6.8%) and unknown loss (6.1%). 


In June 2012, National Retail Federation indicated, based on preliminary survey results, that retail shrinkage decreased to1.41 percent of retail sales in 2011 ($34.5 billion), down from 1.49 percent in 2010 ($37.1 billion). According to the survey, the majority of retail shrinkage last year was due to employee theft, accounting for 43.9 percent of total losses. Additionally, shoplifting accounted for approximately 35.7 percent of total losses, up from just over 32 percent last year. Other losses included administrative error (12.1% of shrinkage) and vendor fraud (5.0% of shrinkage). Retailers said that the cause of the remaining shrinkage was unknown.

In June, 2011 National Retail Federation reported, based on preliminary survey results, that retail shrinkage increased to 1.58 percent of retail sales in 2010, up from 1.44 percent in 2009. According to the survey, total retail losses cost retailers $37.1 billion last year, up from $33.5 billion in 2009.  According to the survey, the majority of retail shrinkage last year was due to employee theft, at $16.2 billion, accounting for 43.7 percent of total losses. Retailers reported that 18.7 percent of cases involved collusion between internal and external bad actors. Retailers lost $12.1 billion to shoplifting, which is 32.6 percent of total losses. Other losses included administrative error ($4.8 billion and 12.9% of shrinkage) and vendor fraud ($2 billion and 5.4% of shrinkage). Retailers said that the cause of the remaining shrinkage was unknown.

In June, 2007,
National Retail Federation reported: “Though total retail losses continue to rise in correlation with industry sales, it is encouraging that shrinkage as a percentage of sales has stayed flat,” said Dr. Richard Hollinger, lead author of the report and a criminology professor at the University of Florida. “Retailers seem to be putting a dent in the amount of criminal activity in their stores, though they acknowledge they have a lot of work left to do.”  According to the survey, the majority of retail shrinkage last year hit was due to employee theft, at $19.5 billion, which represented almost half of losses (47%). Shoplifting accounted for $13.3 billion, or about one-third (32%) of losses. Other losses included administrative error ($5.8 billion and 14% of shrinkage) and vendor fraud ($1.7 billion and 4% of shrinkage). 



Retail Industry1992 to 2013 TrendsRetail & EthicsDr. Ayad's Research InterestsExcerpt from The Inclusive LeaderDr. Ayad's QuotesAbout Dr. AyadContact MeRecommendationsPhotos