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India once again tops the retail shrinkage survey

Posted by retailigence on November 23, 2008

The second annual Global Retail Theft Barometer-2008 Survey, covering 920 large retailers across 36 countries has rated India with the highest shrinkage rate at 3.10 per cent this year, an increase of 6.9 per cent over last year.

This revelation has put India in the topmost positions amongst countries worldwide closely followed by Thailand, South Africa and Malaysia. This study is prepared by the Centre for Retail Research, Nottingham, England, and is funded by Checkpoint Systems Inc. “In India, most retailers do not consider shrinkage as a major concern. Unfortunately, it is an accepted fact. They do not realise that it is killing their bottom-line directly.

According to the report, the countries with the highest shrinkage (as a percentage of sales) this year was: India (shrinkage 3.10 per cent of retail sales), Mexico (1.68 per cent), Thailand (1.59 per cent), South Africa (1.59 per cent) and Malaysia (1.53 per cent). The lowest rates of shrinkage were found in Japan, Austria and Switzerland (all 1.01 per cent), Germany (1.10 per cent) and Denmark (1.20 per cent).

The total shrinkage in India in 2008 is a $2.5 billions, which is equivalent to 3.10 per cent of retail sales – an increase of 6.9 per cent as compared to 2007, when the figure was 2.90 per cent. Of the external shrinkage in India, customer theft contributed around 44.7 per cent of shrinkage losses, employee theft was responsible for 23.7 per cent as compared to 8.4 per cent by suppliers/vendors. The remaining 23.2 per cent was contributed by administrative errors .

Sources :- Sakaal Times


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