Retailers in the UK are expected to lose £1 billion over Christmas as a result of shoplifting, dishonest employees and vendor or distribution losses, according to a new study released by the Centre for Retail Research.
The report, funded by an independent grant from 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 £522 million through shoplifting, £431 million through employee theft, and £47 million through vendor and distribution losses. In total, the losses could represent a 3.4% 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, 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.”
Per Levin, President and Chief Sales Officer for Shrink Management & 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 in Europe, and $8.9 billion in the USA.
