According to the report that was prepared by the NRF for the fiscal year 2022, the rates of shrinkage went up to 1.6% from 1.4% in the previous year. 65% of the shrinkage may be attributed to theft that occurred both internally and outside. Seventy percent of business owners in the retail industry believe that the number of violent acts carried out by members of Organized Retail Crime (ORC) has significantly increased over the past few years.
A significant rise from the previous year's total of $93.9 billion, which was recorded in this year.
David Johnston, Vice President of Asset Protection and Retail Operations for the National Retail Federation, emphasized the seriousness of the issue by stating, "Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire." This statement emphasized the gravity of the problem.
As a direct result of this, numerous stores have reduced the number of hours during which they are open (45%), removed particular products from their inventory (30%), or even shut their doors (28%). It is interesting to note that 41% of businesses now take a "hands-off" approach to preventing stealing at their establishments. Shoplifting is most prevalent in Los Angeles, San Francisco/Oakland, Houston, New York City, and Seattle. Los Angeles, San Francisco/Oakland, and New York City are also among the top five. There has been an increase in spending on loss prevention and training for staff violence, and 93% of merchants are in favor of federal ORC legislation. Additionally, there has been a rise in the number of violent incidents that have been reported.
According to the press release, the National Retail Federation (NRF) has announced that it has commissioned renowned loss prevention and security specialists to execute the 2023 National Retail Security Survey on behalf of retail companies that account for $1.6 trillion in annual sales. This research was conducted in conjunction with the Loss Prevention Research Council by Appriss Retail, which provided funding and participated in the research.
