Retail crimes cost retailers £4.9bn

Fashion businesses suffering during economic downturn is a well-known news topic, however retailer's losses are also greatly affected by shoplifting, fraud, organised retail crime and administrative errors, all of which cost the UK high street an

estimated £4.9 billion over the past 12 months, according to new figures.

The total amount of retail goods lost - calculated as a percentage of sales - rose by 6.2% in the year to July, a study by the Centre for Retail Research found. While shoplifting was estimated at 43.8% of the total loss, theft by UK employees was also a major factor at 36.1%. Neil Matthews, vice-president of loss prevention firm Checkpoint Systems, who commissioned the report, said: "The fact that retail loss has increased so significantly should certainly not be taken lightly.

"It's extremely worrying that the actions of some people can end up affecting innocent families financially, which is a cost the majority of people can ill-afford in this tough economic climate."

The Global Retail Theft Barometer 2011, based on a survey of 1,187 large retailers with combined sales of $984 billion (£623.8 billion), found that thieves were stealing an average of £79 worth of goods each time, indicating a preference for branded merchandise that could be resold.

Some 1.86% of clothing sales were lost, while beauty increased to 2.37%. Mr Matthews added: "High losses are experienced by a relatively small number of product lines, particularly those that have been recently launched, expensive, easily stolen and in great demand.

The Centre for Retail Research provides authoritative and expert research and analysis of the retail and service sectors in Britain, Europe and globally. The Centre, originally a university research group, has been independent since 1997.

Image: Shoplift warning
Source: Evening Standard ©