The report ‘Retail Security in Europe. Going beyond Shrinkage’ is the result of a study carried out by Crime&tech, with the support of Checkpoint Systems, that goes beyond shrinkage to analyse retailers’ inventory policies and technologies, the contextual factors that impact on retail losses, the modus operandi of shoplifters and how countermeasures and security solutions are adopted and combined.
We used an innovative methodology that included a survey of retailers representing approximately 24,000 stores, store-level shrinkage data for approximately 3,500 stores (the largest dataset of its kind ever analysed), analysis of 1,600 news reports on retail crime, a focus group and bilateral interviews with more than 50 security managers.
The study found that shrink losses cost retailers more than €49 billion a year, or 2.05% of the retail sector’s annual turnover. The loss is calculated as the sum of shrinkage (1.44% of sales) and security costs (0.61%).