Theft against shops can account for a major reduction in their profits. We have found a small CCTV system to be the most cost-effective form of prevention for shops of all sizes and type. Tagging is expensive while mirrors are often used more effectively by the shoplifter than the shop assistants. Because a camera does not allow the shoplifter to know whether they are being watched, or recorded, at any particular moment they are uneasy about stealing while under the camera’s view. They will, therefore, normally go to another shop where the odds are in their favour rather than being against them or unknown. For the majority of those tempted to shoplift it will provide a very high level of deterrence. Our retail clients indicate to us that CCTV can reduce theft by a significant amount.
Retail Crime Surveys
Retail crime is slashing shops’ profits according to two of the largest studies ever conducted into retail crime.
One of these studies examined 54,000 shops which account for just under half of all retail sales in Britain, the other studied retail outlets responsible for over 27% of sales, so no shopkeeper should ignore these results on the basis that, “it isn’t relevant to my business”.
Survey 1 was the National Survey of Retail Theft and Security and was part of a three-year study.
Survey 2 was the Retail Crime Costs Survey by the British Retail Consortium of which many shopkeepers, both small and large, are members.
Some of the facts that have come out of the surveys make very sombre reading.
- Shrinkage from small retailers (1.91%) is nearly one third higher than from the large retailers (1.49%)
- One survey found that average shrinkage of 1.6% results in an average loss of profits of 17.8% (See chart for details of your own retail sector), while the other stated that without the two million crimes suffered by retailers last year profits would have been 25% higher.
- Over 97% of shrinkage is undetected by retailers at the time of the crime or subsequently.
- For every theft that is detected over 46 go undetected.
- Almost 80% of theft is attributable to customers or staff, with customers accounting for the largest amount.
- Shrinkage is rising dramatically, estimated to having doubled in 23 years.
- 14,000 shop staff were attacked in the previous year with 106,000 being threatened with violence.
Security Tags
CCTV companies are often asked, “What benefit does CCTV offer compared to Retail Tagging?”
The main advantage that CCTV offers over tagging is that it provides instant and positive identification of the person committing the crime which can be handed over to the police for arrest and prosecution. This is important as tagging systems are unlikely to prevent items being stolen where there are no security personnel at the doors. By the time the tag alarm has sounded the person is already out of the shop and half-way down a busy high street. Even if a shop assistant is near the door it is unlikely that they will put their safety at risk by tackling the thief.
Shrinkage Rates
This table shows the average shrinkage rates and the consequent loss of profits for your sector of retail sales according to those shops in the survey.
Average Shrinkage (%) | Shrinkage as proportion of profit (%) | |
CTN’s/book shops | 1.91 | 28.75 |
Clothing and fashion | 1.91 | 27.55 |
DIY, hardware and car products | 1.86 | 25.70 |
Department Stores | 1.70 | 17.80 |
Electrical goods | 1.63 | 13.33 |
Footwear and Sports goods | 1.12 | 11.70 |
Furniture and textiles | 0.75 | 12.90 |
Grocers and supermarkets | 0.83 | 25.00 |
Jewellers | 1.53 | 18.20 |
Pharmacy and drugstores | 2.54 | 15.50 |
Specialist food etc. | 1.24 | 21.90 |
Toys, video and music | 2.14 | 21.20 |
Overall % | 1.62 | 17.78 |
Note:
If you are a large business your figures are likely to be lower than the above.
If you are a small retailer your figures are likely to be higher than above.
You may also be interested to read the CCTV User Guide for Shopping Environments article from Security Management Today magazine.
Contact us for free advice on how to best use CCTV in protecting your retail outlet(s).