Wednesday, November 11, 2009

Global Retail Theft Barometer Study Finds Retail Theft Reaches $115 Billion Worldwide - AOL Money & Finance

“While most businesses have suffered as a result of the recession, few have been
as hard-hit as the retail industry,” said Rob van der Merwe, Chairman, President
and CEO of Checkpoint
Systems, Inc
., the sponsor of the study. “While retailers have had to cut
budgets in most areas, this year’s study shows the adverse effect of cutting
spending too deeply in the area of loss prevention. Prudent spending in this
area can have a very positive effect on bottom-line numbers, and act as a
force-multiplier, especially as budgets for training programs and security
personnel are reduced.”


Correlation Between Reduced Security Spending and Increase in Theft


“The 2009 study also found that retailers decreased their spending on loss
prevention and security by $900 million, no doubt in response to their general
need to trim budgets in tough times,” continued Professor Bamfield. “However ,
the correlation between $900 million in decreased security spending and a $10
billion increase in theft is very significant . It highlights the importance of
continued advancement and improvement of loss prevention programs, as reducing
theft is key to the success and growth of retailers’ businesses.”

Loss prevention spending in 2009 was equivalent to an average of 0.31% of retail sales.

Read full article at Global Retail Theft Barometer Study Finds Retail Theft Reaches $115 Billion Worldwide - AOL Money & Finance

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