“GLOBAL RETAIL THEFT BAROMETER” PĒTĪJUMA REZULTĀTU PREZENTĀCIJA Povilas Kepalavičius, „StrongPoint“ Product Manager

1. IT Academy
Povilas Kepalavičius, 2015 11 26, Riga

2. Global Retail Theft Barometer

3. Economics

4. Economics

5. Economics

6. Quantity of stores for milion people

7. About survey
• The performance results captured in this year’s
report are interesting in many ways,
constituting elements of improvement and of
concern
• The report’s findings reveal that shrink remains
a significant operational challenge for retailers
around the world.
• Survey is done in 24 major geografical markets

8. Methodology
• The report’s objective is to understand shrinkage rates in
four key regions, covering 24 countries and 222 retailers
(who are reaching 663 Bilion EUR‘s)

9. Global shrinkage rates
• Shrinkage amplitude
In all countries variates
From 0,8% to 1,7%
• Biggest countries and
Economies, Biggest losses
• Smallest shrinkage has
Strong economy countries
1.29
1.7
1.53
1.48
1.39
1.36
1.35
1.3
1.23
1.18
1.16
1.16
1.14
1.1
1.09
1.09
1.09
1.09
1.06
1.05
1
0.99
0.97
0.97
0.83
0 0.5 1 1.5
Pasaulinis
Meksika
Kinija
JAV
Suomija
Ispanija
Rusija
Brazilija
Olandija
Portugalija
Argentina
Belgija
Danija
Vokietija
Lenkija
Italija
Prancūzija
Hong Kongas
Australija
Austrija
Švedija
Turkija
JK
Japonija
Norvegija

10. Europe Retail Shrinkage – by Store Type

11. Shrinkage changes from previous year
• First bullet point
• Second bullet point
• Third bullet point
Country Shrinkage (%)
Last year
Shrinkage (%)
This year
Changes
Belgija 1,3 1,16
Prancūzija 1,4 1,09
Vokietija 1,10 1,10
Italija 1,3 1,09
Olandija 1,4 1,23
Portugalija 1,2 1,18
Ispanija 1,4 1,36
Jungtinė Karalystė 1,2 0,97
Increased
Decreased
Same

12. Variation
1.40%
1.42%
1.45%
1.37% 1.35%
1.24% 1.23%
1.26%
1.27%
1.33%
1.29%
1.39%
1.40%
1.13%
1.10%
1.15%
1.20%
1.25%
1.30%
1.35%
1.40%
1.45%
1.50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

13. Sources of Europe Retail Shrinkage
• Shoplifting is the biggest
issue in europe – 38%
(13.57 bilion. eur)
• Dishonest employee
theft retailers cost is
7.71 bilion. eur
• Shrinkage size depends
on store type, size of
retailer, and
investments on loss
prevention
21.90%
38.60%
14.70%
24.80%
Personnel
Customers
Vendors
Errors

14. Most-stolen Merchandise
• First bullet point
• Second bullet point
• Third bullet point

15. Most popular investments in loss prevention
• First bullet point
• Second bullet point
• Third bullet point

16. Investments size in loss prevention
• First bullet point
• Second bullet point
• Third bullet point
• Retailers constantly investing in complex solutions, with good ROI, like Video
surveillance systems, electronical article surveillance, security guards, business
intelligence. To reach the best KPI’s
Country
Investment % (from
revenue)
Country
Investment % (from
revenue)
Austria 1,15 Norway 1,30
Belgium 0,71 Poland 0,23
Denmark 1,03 Portugal 1,03
Finland 1,37 Russia 1,30
France 0,49 Spain 1,38
Germany 0,82 Sweeden 0,97
Italy 1,01 Turkey 0,12
Netherlands 0,81 UK 1,18
Avarage investments size in Europe is 0.93% (counting from revenue)

17. BALTIC Survey
• We reached 18 retailers, with 800
stores.
• Shrinkage in baltics is from 0,24%
to 1,8%
• 2014 Average shrink is 0,68%
• 2013 Average shrink is 0,87%
• Investments for loss prevention is
from 0,2% to 1% from revenue.
-0,19%

18. Source of shrinkage: Europe vs. Baltics
• Same as in Europe, biggest part of shrinkage in baltics is made
by shoplifters. But number is 1,5 times bigger then Europe.
• But losses from Vendors and Errors more than 2 times smaller
thank Europe. Mostly is that we are more advance with
business management systems, and business operations.
38.60%
21.90%
39.50%
Europe
Shoplifters
Employees
Vendors,
Errors
57.00%27.00%
14.60%
Baltics

19. Conclusion
• Shrinkage is still on of key and critical issue in retailers daily basis operations
• Retailers are investing, paying more attention and puts more resources for
loss prevention
• Key factors, why shrinkage is decreasing:
• More investments in loss prevention;
• More cooperation between manufacturers and retailers;
• Efforts on data analysis, and business inteligence ;
• Personnel trainings, and job with them.
Shoplifters and Dishonest employee is biggest issue, which makes 67% of all
shrinkage
• Investment in loss prevention solutions, should be made with very good
calculations, ROI and KPI‘s, and touch all store level operations , be more
complex

20. Conclusion
Baltic Countries in the European context
• Avarege European retailers losses – 1.13%
from revenue.
• Avarege Baltics retailers losses –
0,68% from revenue.
European retailers investment size –
0.93% from revenue.
• Baltics retailers, invest significantly smaller
amount in loss prevention. But has better
results.

21. Conclusion
• It‘s very obvious that shirnkage is decreasing in most of
the countries, except Asia/Pacific regions, which biggest
part takes china.
• Decreasing shrinkage is conclusion of constant in growing
investment in loss prevention.

22. Paldies!