Retail Crime Caused $112 Billion In Losses In US In 2022
WASHINGTON, DC (IANS) – Losses for the US retail industry as a result of crime, violence, and theft reached $112.1 billion in 2022, according to a recent report released by the National Retail Federation.
In its National Retail Security Survey, NRF, which has designated October 26 as “Fight Retail Crime Day”, said retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four US jobs — 52 million working Americans, reports Xinhua news agency.
The report noted that the average shrink rate, the measurement of losses calculated by a retailer over a specific period, in the 2022 fiscal year increased to 1.6 percent, up from 1.4 percent in 2021.
While retail shrink encompasses many types of loss, it is primarily driven by theft, including organized retail crime.
Theft, both internal and external, accounts for nearly two-thirds of retailers’ shrink. However, for some sectors, theft can represent more than 70 percent of overall shrink, said the report.
According to the report, Los Angeles topped the list of cities and metropolitan areas most impacted by organized retail crime last year, followed by San Francisco/Oakland and Houston.
“Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire,” said David Johnston, vice president of asset protection and retail operations for NRF, in the report.
“Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category.”
NRF said it is the world’s largest retail trade association.
According to the organization, its 2023 National Retail Security Survey results contain insights from 177 retail brands, which accounted for $1.6 trillion of annual retail sales in 2022 and represent more than 97,000 retail locations across the US.