The retail industry is hemorrhaging over $250 billion globally each year, and the startling statistics from across the U.S., U.K., and beyond reveal that shoplifting, employee theft, and administrative errors are creating a silent profit crisis.
Key Takeaways
- In 2023, U.S. retail shrinkage totaled $121.6 billion, representing a 1.6% shrinkage rate of total sales
- Globally, retail shrinkage losses reached $134.4 billion in 2022 across 151 countries, averaging 1.75% of sales
- U.K. retailers experienced £8.1 billion in shrinkage losses in 2023, equating to a 1.6% rate, driven by economic pressures
- Organized retail crime caused 37% of U.S. shrinkage in 2023, per NRF survey of 126 retailers
- Shoplifting incidents rose 26% in U.S. from 2021 to 2022, with 65% of retailers reporting increases
- In California, shoplifting arrests dropped 10% in 2023 due to Prop 47, leading to $7 billion losses
- Employee theft accounted for 29.8% of U.S. retail shrinkage in 2023, per NRF survey
- Internal theft losses in U.S. totaled $36.3 billion in 2022
- 56% of U.S. retailers reported increased employee theft in 2023 post-pandemic
- U.S. administrative errors caused 22% of shrinkage in 2023, $26.8 billion losses
- Vendor errors in invoicing led to 10% of U.S. shrinkage 2022
- Checkout scanning errors averaged 0.4% of sales in U.S. grocery 2023
- Vendor fraud caused 5.2% of U.S. shrinkage in 2023, $6.3 billion
- Global organized retail crime losses projected to hit $150 billion by 2025
- U.S. shrinkage as % of sales rose from 1.3% in 2019 to 1.6% in 2023
Retail shrinkage is a costly global issue that significantly impacts retailers.
Administrative Errors
- U.S. administrative errors caused 22% of shrinkage in 2023, $26.8 billion losses
- Vendor errors in invoicing led to 10% of U.S. shrinkage 2022
- Checkout scanning errors averaged 0.4% of sales in U.S. grocery 2023
- Inventory record discrepancies caused 15% shrinkage U.K. 2023
- Canada process errors 0.9% rate in retail 2022
- Australia receiving errors from vendors 12% of shrinkage 2023
- France labeling errors in produce 8% of grocery shrinkage 2022
- U.S. unknown shrinkage (admin) rose to 25.4% of total in 2023
- Pricing inaccuracies caused $2.5 billion U.S. losses 2022
- Self-checkout glitches led to 5% error rate U.S. 2023
- Supplier over-shipment discrepancies 7% shrinkage U.K. 2023
- U.S. drug stores admin errors 0.6% 2023
- Apparel tagging errors 9% of losses U.S. 2022
- Convenience store shift handoff errors 4% shrinkage U.S. 2023
- Big-box inventory miscounts 11% U.S. 2022
- Germany admin shrinkage 0.7% 2023
- Italy process errors €1.5 billion 2022
- Spain vendor admin issues 6% 2023
- Netherlands checkout errors down 10% with AI 2022
- Sweden inventory errors 5% shrinkage 2023
- Brazil admin errors 1.2% organized retail 2022
- India miscounts 10% shrinkage 2023
- China admin shrinkage low at 0.3% 2022
- Mexico receiving errors 8% 2023
Administrative Errors Interpretation
It seems the greatest heist in retail isn't masterminded by shoplifters, but by a persistent, global legion of misplaced decimals, mistaken counts, and managerial mayhem that collectively bleeds billions.
Economic Impact and Trends
- Vendor fraud caused 5.2% of U.S. shrinkage in 2023, $6.3 billion
- Global organized retail crime losses projected to hit $150 billion by 2025
- U.S. shrinkage as % of sales rose from 1.3% in 2019 to 1.6% in 2023
- U.K. shrinkage costs per store averaged £1.2 million in 2023, up 20%
- Canada retail shrinkage economic drag 0.5% GDP equivalent 2022
- Australia shrinkage forecast to rise 15% by 2025 with inflation
- EU total shrinkage €50 billion annually, impacting 2% profit margins 2022
- U.S. grocery shrinkage eroded 1.5% margins in 2023
- Post-COVID shrinkage spike 25% higher in U.S. 2022 vs. 2019
- Shrinkage recovery via tech saved U.S. retailers $4 billion in 2023
- U.K. shrinkage linked to 10,000 job losses in retail 2023
- Brazil shrinkage reduced retail profits by 18% in 2022
- India shrinkage costs projected $5 billion USD by 2025
- China shrinkage minimal impact 0.2% profits due to controls 2022
- Mexico shrinkage 2.5% rate shaved 1% off sector growth 2023
- France shrinkage cost 0.8% GDP in retail sector 2022
- Germany trends show shrinkage up 12% since 2020
- Italy retail closures linked to 15% shrinkage rise 2022
- Spain tourism retail shrinkage volatile +20% 2023
- Netherlands e-com shrinkage trends down 5% YoY 2022
- Sweden shrinkage stable but high cost per sqm 2023
- U.S. drug stores profit hit by 2.8% shrinkage 2023
- Apparel global trends: shrinkage up 10% with supply chain issues 2022
- Convenience U.S. trends: shrinkage +18% post-pandemic 2023
- Big-box economic impact: $10B annual from shrinkage U.S. 2022
Economic Impact and Trends Interpretation
While global shoplifters, fraudsters, and supply chain thieves are building a shadow economy that would rank among the world's top GDPs, honest retailers are left footing a multi-billion dollar bill that ultimately costs jobs, raises prices, and shaves the growth off entire nations.
Employee Dishonesty
- Employee theft accounted for 29.8% of U.S. retail shrinkage in 2023, per NRF survey
- Internal theft losses in U.S. totaled $36.3 billion in 2022
- 56% of U.S. retailers reported increased employee theft in 2023 post-pandemic
- Grocery employee dishonesty rate was 1.3% of shrinkage in U.S. 2022
- Sweethearting (employee giving free items) caused 15% of internal losses U.S. 2023
- U.K. employee theft averaged £1.5 billion annually in 2023
- Canada employee theft up 22% in 2022, 1.2% of total shrinkage
- Australia staff theft incidents rose 18% in 2023
- France hypermarkets employee theft 0.8% rate in 2022
- Cash register skimming by employees caused 25% of U.S. internal theft 2023
- 40% of employee thieves in U.S. retail stole over $1,000 lifetime, 2022 data
- Vendor kickbacks to employees averaged 12% of internal shrinkage U.K. 2023
- Drug store employee theft up 20% U.S. 2023, focused on prescriptions
- Apparel employee shrinkage 1.1% U.S. 2022
- Convenience store walk-offs by staff 30% of thefts U.S. 2023
- Big-box employee theft recovery rate 60% U.S. 2022
- Germany employee theft cases 150,000 in 2023
- Italy internal theft cost €2 billion in retail 2022
- Spain employee dishonesty 0.9% shrinkage rate 2023
- Netherlands staff theft prosecutions down 15% 2022
- Sweden employee theft stable at 1.0% of shrinkage 2023
- Brazil employee theft 1.5% rate in organized retail 2022
- India employee shrinkage 1.8% in 2023, per FICCI
- China retail employee theft minimal at 0.5% due to surveillance 2022
- Mexico staff theft up 25% 2023
Employee Dishonesty Interpretation
While retailers are busy guarding the front door against shoplifters, it seems the back door is having a revolving-door moment, with employees globally treating the till as their personal petty cash fund and the stockroom as a no-cost convenience store.
Overall Shrinkage Rates
- In 2023, U.S. retail shrinkage totaled $121.6 billion, representing a 1.6% shrinkage rate of total sales
- Globally, retail shrinkage losses reached $134.4 billion in 2022 across 151 countries, averaging 1.75% of sales
- U.K. retailers experienced £8.1 billion in shrinkage losses in 2023, equating to a 1.6% rate, driven by economic pressures
- In 2022, Canadian retail shrinkage was $5.6 billion CAD, or 1.4% of sales, per Retail Council of Canada
- Australian grocery shrinkage rate hit 1.89% in 2023, costing $4.5 billion AUD
- EU retail shrinkage averaged 1.5% in 2022, totaling €49 billion
- U.S. apparel sector shrinkage was 1.9% in 2023, up from 1.7% prior year
- Brazil's retail shrinkage rate stood at 2.3% in 2022, highest in Latin America
- Japan's convenience store shrinkage was 1.2% in 2023, lowest among developed markets
- South Africa retail shrinkage reached 2.8% in 2022, costing R30 billion ZAR
- India organized retail shrinkage averaged 2.1% in 2023, per FICCI report
- China's e-commerce shrinkage rate was 0.9% in 2022, due to advanced tech
- Mexico retail shrinkage totaled $12 billion USD equivalent in 2023 at 2.4% rate
- France grocery shrinkage was 1.4% in 2022, €4.2 billion losses
- Germany department stores saw 1.8% shrinkage in 2023
- Italy retail shrinkage rate climbed to 2.0% in 2022 amid inflation
- Spain's shrinkage losses were €3.5 billion in 2023 at 1.7% rate
- Netherlands food retail shrinkage averaged 1.3% in 2022
- Sweden retail shrinkage was 1.5% in 2023, stable year-over-year
- Norway convenience stores reported 1.1% shrinkage in 2022
- U.S. shrinkage rate for big-box retailers was 1.5% in 2023, $25 billion losses
- Drug stores in U.S. had 2.2% shrinkage in 2022, highest sector rate
- Grocery shrinkage in U.S. was 1.62% in 2023, $14.2 billion
- Electronics retail shrinkage averaged 2.5% globally in 2022
- Convenience store shrinkage in U.S. hit 2.0% in 2023
- Department stores U.S. shrinkage 1.7% in 2022
- Mass merchandisers shrinkage 1.4% U.S. 2023
- Sporting goods retail shrinkage 1.9% U.S. 2022
- Home improvement stores U.S. 1.3% shrinkage 2023
- U.S. online retail shrinkage rate was 1.1% in 2023, lower than physical stores
Overall Shrinkage Rates Interpretation
While these figures reveal a disturbingly efficient global 'inventory relocation program' averaging around 1.6%, it's a tragicomedy where the audience pays for the stolen show.
Shoplifting Statistics
- Organized retail crime caused 37% of U.S. shrinkage in 2023, per NRF survey of 126 retailers
- Shoplifting incidents rose 26% in U.S. from 2021 to 2022, with 65% of retailers reporting increases
- In California, shoplifting arrests dropped 10% in 2023 due to Prop 47, leading to $7 billion losses
- U.K. shoplifting offenses reached 430,000 in 2023, up 37% from prior year
- 72% of U.S. retailers reported more violent shoplifting in 2023 vs. 2021
- Grocery stores saw shoplifting account for 36% of shrinkage in 2022 U.S.
- In 2023, average shoplifting haul per incident was $136 in U.S., up from $100
- Canada shoplifting incidents increased 29% in 2022, costing $1.5 billion
- Australia reported 1.2 million shoplifting cases in 2023, up 20%
- France saw 500,000 shoplifting incidents in supermarkets in 2022
- Shoplifters targeted high-value beauty products in 70% of U.S. cases 2023
- U.K. no-suspect shoplifting cases hit 40% of total in 2023
- 28% of U.S. shoplifting involved organized groups in 2022 survey
- Drug store shoplifting up 15% in U.S. 2023, focused on OTC meds
- Electronics theft via shoplifting caused 45% of sector shrinkage U.S. 2022
- Juvenile shoplifters accounted for 22% of U.S. incidents in 2023
- U.K. supermarkets lost £1.2 billion to shoplifting in 2023
- In Brazil, shoplifting rose 35% in 2022 due to economic downturn
- Germany reported 1.1 million shoplifting cases in 2023
- Italy shoplifting incidents up 18% in 2022
- Spain supermarkets shoplifting cost €800 million in 2023
- Netherlands shoplifting prosecutions down 25% since 2019
- Sweden shoplifting up 12% in 2023
- U.S. apparel shoplifting averaged 1,200 incidents per retailer annually 2022
- Convenience store shoplifting U.S. 2023: 40% involved alcohol/tobacco
- Big-box shoplifting recovery rate dropped to 45% in U.S. 2023
Shoplifting Statistics Interpretation
While retail crime is skyrocketing globally with increasing brazenness and violence, the real shopaholics appear to be the shoplifters, who are collectively curating a very expensive, international, and non-consensual shopping spree.
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