The State of the Loss Prevention Industry: 2010 Update

We recently completed our 22nd Annual Retail Theft Survey with 25 major retail companies participating, representing 18,906 stores, with retail sales exceeding $605 billion (2009). The survey participants were all large retail companies who practice true loss prevention strategies, yet they still apprehended over 1 million shoplifters and dishonest employees in 2009, and recovered more than $163 million from those apprehensions. [Download the 22nd annual report, PDF file]

For the fourth consecutive year, the total shoplifter and dishonest employee apprehensions increased substantially. Shoplifting apprehensions increased an amazing 16.8%, while recovery dollars from those apprehensions increased just 1.0%. The apprehension of and recovery dollars from dishonest employees decreased for the first time in six years, falling 9.3% and 15.7% respectively.

While shoplifting was up and employee theft down, the numbers continue to amaze us as these thieves stole over $6 billion in 2009 from our 25 surveyed retailers.

Below are some of the highlights from our 22nd Annual Retail Theft Survey:

Shoplifting

  • Apprehensions: Survey participants apprehended 1,014,817 shoplifters in 2009, an increase of 16.8% from the prior year.
  • Recovery Dollars: For the 9th straight year, dollars recovered from shoplifting apprehensions increased. In 2009, dollar recoveries were in excess of $111 million, a slight increase of 1.0% over 2008's recovery dollars.
  • For the 13th consecutive year, dollars recovered from shoplifters where no apprehension was made ($29 million) increased. In 2009, this increase was 19.35%.
  • The average shoplifting case value in 2009 was $110.14, which was a decrease of 13.52% over 2008's average case value ($127.37).

Employee Theft

  • One out of every 28.4 employees was apprehended for theft from their employer is 2009. (Based on comparison data of over 2.9 million employees.)
  • Apprehensions: Survey participants apprehended 70,409 dishonest employees in 2009, a decrease of 9.35%.
  • Recovery Dollars: Dollars recovered from dishonest employee apprehensions totaled over $51.3 million in 2009, a decrease of 15.71%.
  • The average dishonest employee case value in 2009 was $728.90, a 7.0% decrease over 2008's average case value ($783.88).

We asked our survey participants what they thought was the cause(s) behind the increase in shoplifting apprehensions and recovery dollars in 2009 and they contributed the following to increased shoplifting activity:

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