LP Magazine

JUL-AUG 2019

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

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Two Surveys Report US Shrink Increase 2019 National Retail Security Survey Finds Increase in Shrink Theft, fraud, and losses from retail shrink totaled $50.6 billion in 2018, up from $46.8 billion the year before, as industry security executives said there is a growing overlap between loss prevention and cyber-security efforts, according to the annual National Retail Security Survey (NRSS) released in June by the National Retail Federation (NRF) and the University of Florida. "We are seeing dramatic changes in the risks faced by retailers, and loss prevention practices and priorities are evolving to meet those challenges," NRF Vice President for Loss Prevention Bob Moraca said. "As criminals find new ways to steal, loss prevention teams are finding new ways to stop them. Increasingly, this is a battle focused on technology." According to the report, shrink averaged 1.38 percent of sales during 2018, up slightly from 1.33 percent in 2017, but has held steady around 1.4 percent over the past few years. With the percentage largely unchanged, the increase in the dollar amount is due primarily to growth in retail sales. The largest losses per incident came from robberies at an average $2,885.15 (down from $4,237.02 in 2017), followed by employee theft at $1,264.10 (up from $1,203.16), and shoplifting/organized retail crime (ORC) at $546.67 (up from $543.28). Robberies are comparatively rare, however, while shoplifting/ORC and employee theft together typically account for about two-thirds of shrink each year, with most of the remainder coming from vendor or paperwork errors. While 43 percent of those surveyed said the largest increase in fraud is occurring in stores, 30 percent said it is happening online, and 22 percent said it is coming in multichannel sales, such as those where the purchase is made online but the merchandise is picked up in store. Of challenges that have grown in priority for LP teams over the past five years, cyber-related incidents are the top issue, according to 68 percent of those surveyed, while 65 percent also pointed to e-commerce crimes, and another 51 percent cited return fraud, including incidents involving purchases made online but picked up in stores. ORC was cited by 65 percent, and internal theft by 60 percent. A total of 89 percent said there is increasing overlap between retail loss prevention teams and cyber-security teams, but only 30 percent of LP executives said they were regularly involved in cyber-security issues. Most of the time, LP is brought in after the fact on cyber issues, with 60 By Loss Prevention Media Staff The magazine website, LossPreventionMedia.com, offers readers daily breaking news, industry surveys, videos, press releases, case studies, and original articles from LPM writers and loss prevention contributors. The website is updated daily with the latest information included in our daily e-newsletter. Sign up at LossPreventionMedia.com/subscribe for free to add your email address to receive our newsletter and other digital offerings. This column highlights some of the content readers will find on the magazine website and newsletter. "We are seeing dramatic changes in the risks faced by retailers, and loss prevention practices and priorities are evolving to meet those challenges. As criminals find new ways to steal, loss prevention teams are finding new ways to stop them. Increasingly, this is a battle focused on technology." - Bob Moraca, NRF LOSSPREVENTIONMEDIA.COM 2 0 1 9 national retail SECURITY SURVEY continued on page 68 66 JULY‚ÄďAUGUST 2019 | LOSSPREVENTIONMEDIA.COM

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