2017 Shrink cost US retailers $42.49B, 1.85% of sales
Global retail shrink led to losses of $99.56 billion in calendar 2017, according to the Sensormatic Global Shrink Index compiled by Tyco Retail Solutions and PlanetRetail RNG. U.S. shrink generated losses of $42.49 billion, accounting for 1.85% of retail sales, slightly above the global average of 1.82%. The National Retail Federation and the University of Florida also analyzed U.S. shrink trends by interviewing 63 loss prevention and asset protection professionals from a variety of retail sectors.
This study found that shrink averaged 1.33% of sales in 2017, down from 1.44% the year before. A total of 59% of those surveyed said that shrink was flat or decreasing, up from 51% in 2016. In comparison, 41% of respondents claimed shrink was growing, down from 49%. The Sensormatic report surveyed 1,120 professionals from retailers in 14 countries that collectively operate more than 229,000 stores. Shrink rates in the U.S. varied by retail sector, with the highest level, 2.43%, experienced by fashion and accessories stores. Other U.S. retail segments with high levels of shrink included:
- Convenience Stores: 2.05%;
- Home, Garden and Auto Stores: 2.05%;
- Drug Stores, Pharmacies and Perfumeries: 2.03%
- Variety Stores: 1.95%.
“Fashion merchandise is always in high demand and items are usually relatively higher priced, which means a bigger lure for criminals and ultimately a greater loss for retailers when stolen,” said Kim Warne, VP of Marketing and CMO at Tyco Retail Solutions. “Loss due to the shrink in fashion and accessory stores amounts to $4.12 billion globally. [Source: Retail Touch Points]
Woman and accomplices stole from two pharmacies within four days
She won’t be welcome at this pharmacy chain anymore. A Mariners Harbor woman swiped beauty products and medicine from two Staten Island CVS stores earlier this month, prosecutors allege. Quandesha Graham 34, first struck on Aug. 9 in the CVS pharmacy in Bulls Head, said a criminal complaint. The defendant and two others who remain at large, snatched merchandise valued at $1,659 and left without paying, according to the complaint and police. Their actions were captured on videotape surveillance, said the complaint.
Four days later, Graham and an unidentified accomplice hit the CVS at 778 Manor Road, Castleton Corners, the complaint said. They grabbed various body and beauty products, then left the store, said the complaint. Graham was busted on Tuesday. She was arraigned later that day in Criminal Court and charged with grand larceny, stolen-property possession and petit larceny. She is being held in lieu of $5,000 bond or $2,500 cash bail.
Graham was also arraigned that day on misdemeanor charges of possessing burglar tools, stolen-property possession and petit larceny stemming from an unrelated incident on Monday, online state court records show. She is being held in lieu of $3,000 bond or $1,500 cash bail in that case. Her next court date is Sept. 6. [Source: SI Live]
Shoplifter escapes after dragging police officer behind car
Authorities in Arkansas are searching for a woman responsible for striking a Searcy police officer with her car, dragging him behind the vehicle for 30 feet. Searcy Police say they received a call on Sunday about a shoplifting incident located at the Walmart Supercenter. When officers arrived on scene, they spoke with an employee who said Stephanie Carter, 35, of Jacksonville, had taken items from the store and attempted to leave. Carter had two children with her at the time of the incident.
According to the report, Carter was arrested for theft of property, however, while officers were waiting on a guardian to come and pick up the children, Carter slipped out of her handcuffs and ran to her car. The officer chased her and attempted to pull her out of the vehicle, however, Carter put the car in reverse, pinning the officer and dragging him approximately 30 feet through the parking lot. The officer was taken to a nearby hospital for treatment of his injuries. He has since been released. Officials say Carter drove away without her children. Carter’s vehicle was located in Jacksonville, however, Carter is still missing, police say. Carter will face the following charges once located:
- Aggravated robbery
- First degree escape
- Second degree battery
- Aggravated assault
- Leaving the scene of an accident with injury
- Two counts of theft of property
- Contributing to the delinquency of a minor
- Leaving the scene of an accident with property damage.
If anyone has information about Carter’s location they are asked to call the Searcy Police Department. [Source: KATV7 News]
Employee charged with identity theft of customers’ credit cards
A staff member at the Fairfield Inn in Mount Pleasant, Wisconsin, is accused of using guest’s credit card information to make a number of purchases earlier this year. Kavellis L. Hadley, 20, was charged by the Racine County District Attorney’s Office with six felony charges of personal identity theft. Each felony carries a fine of $10,000 and six years in prison.
Court records indicate a summons was issued for Hadley’s appearance in Racine County Circuit Court on Thursday afternoon. According to the criminal complaint: A Mount Pleasant police officer responded to the Fairfield Inn, 6421 Washington Ave., where the manager stated that six guests had reported fraudulent transactions on their credit cards while they were at the hotel or shortly after.
Five of the guests had been checked in by the defendant, and a sixth had paid for a room with a credit card authorization by fax, which the officer saw on the desk. One guest also reported that Hadley had attempted to enter her room using a second room key that was created while he was working. The complaint lists a total of $1,165.96 in fraudulent charges allegedly made by the defendant, including one for $150 made to another person who had exchanged several text messages and phone calls with Hadley. The officer also learned that PayPal, on at least one occasion, had been accessed using an IP address that belonged to the hotel while Hadley was working.
Police also found two purchases for $83.30 each on one credit card for pizza that was delivered to the defendant’s home address. Another guest told police that two purchases for sodas from the front desk of the hotel were attempted on his credit card, but those attempted transactions were declined. A preliminary hearing has been set for 1:30 p.m. Sept. 13 in front of Racine County Court Commissioner Alice Rudebusch. [Source: Racine County Eye]
Counterfeit Chinese sneaker seller claims to make $100,000 a month
Weeks after a group of counterfeit sneaker makers were busted importing fake Air Jordans and Nikes into New Jersey, another fake sneaker story is grabbing headlines. Vice News Tonight on HBO recently visited with a producer of fakes in China, who makes his living from reproducing the world’s most coveted releases, such as the Off-White x Nike collabs and the Balenciaga Triple S.Business is apparently booming for Chan, the seller, who claims that he often sells more than 120 pairs of shoes a day. This translates to an income of more than $100,000 a month from hawking counterfeit kicks.
The news crew went to Putian, China, which Vice described as the “fake sneaker capital of China.” Many of the top sneaker brands, including Nike and Adidas, have factories in the area, so it’s an easy environment for counterfeiters to find the same materials that are used by popular shoemakers for authentic sneakers. This helps boost the quality and nearly identical design of the fakes.
Chan gave Vice a look inside his counterfeiter company’s office and told Vice that he often searches through Reddit to decide which sneaker models he should replicate next. He explained that producers of fakes often get their sneakers on the market before the legitimate ones are officially released. He does this by procuring early “back door” pairs of the authentic models and quickly deconstructing them to study their materials and how they’re made in order to make an accurate replica. The story goes on to suggest that producing fake sneakers is not only Chan’s career, but also a prime moneymaker for Putian. You can watch the full report from on the web site. [Source: Footwear News]
Retailer races to fill toy void left by rival
Fresh off one of its best quarters in years, Target wants to step up its toy game ahead of the holiday season — its first without Toys R Us as a competitor.
All remaining Toys R Us and Babies R Us stores shut down earlier this summer after the New Jersey-based retailer declared bankruptcy, creating an opportunity for other retailers in the kids-merchandise space. Target was a clear beneficiary: Sales of baby clothing and shoes rose nearly 20 percent in the most recent quarter. Hardlines — a category that includes toys — saw high-single-digit comparable growth. We’re picking up sales that would have gone to Babies R Us and Toys R Us. … We’re certainly benefitting from new toy buyers, baby buyers that are coming to Target more frequently.,” said Target CEO Brian Cornell on a media call following its second-quarter earnings announcement. [Source: CNBC News]