Survey: Retail shrink means $57 billion loss; cash theft jumps 20%
Shrinkage levels average 1.27% of sales, which translates to a $57 billion loss to the industry, according to the U.S. Retail Fraud Survey, which is based on research into the systems and strategies used by 100 leading North American retailers.
The biggest area of store loss remains employee theft (38% of shrink), up 3% from last year, according to the study, published by U.K. based Retail Knowledge and sponsored by Volumatic and Kount. It is followed by cash theft (24%), up 20% from last year, administration and book keeping errors (21%), down 9%, and shoplifting (11%), down 15%.
The biggest area of online loss is fraudulent use of credit cards (59% of shrink).
In other survey highlights:
• Return fraud is costing retailers an average of 0.25% of sales this year, compared with an average of 0.4% last year.
• With regards to loss prevention departments, on average, each member of the fraud prevention team is responsible for $103 million of sales.
• Guards are used by 31% of all retailers, but never in all of their stores. The highest use of guards (9%) is used in less than 5% of stores and 45% of retailers do not use them in any of their stores.
• Most retailers manage store and online loss prevention separately.
• Retailers’investment in store-based and online fraud prevention is beginning to even up. Store fraud prevention spend has fallen from 0.6% of sales last year to 0.5% this year; online fraud prevention spend has increased from 0.2% of sales last year to 0.34% this year.
• Shrinkage rates vary by retail sector, with discount stores on the high end, at 2.5% of sales, and specialty retailers on the low end, at 0.7% of sales.
Kelly-Moore Paints expands California footprint
San Carlos, California-based Kelly-Moore Paint Company is continuing what it calls an “aggressive retail expansion” with the opening of its 5,400-sq.-ft. store in Petaluma, California.
The store at 905 Lakville St. marks the company’s 105th retail store in northern California.
“Our stores carry the well-earned reputation of being the ‘Painter’s Paint Store,’” said Dan Claybaugh, Kelly-Moore’s VP marketing. “And this means all painters — professional painting contractors, the DIY homeowner, apartment dweller, hobbyist and artist.”
The Petaluma location will feature the entire Kelly-Moore product offering, including the premium Dura-Poxy+, Acry Plex, and Enviro Coat for interior projects and Acry Shield Exterior, Dura-Poxy+ Porch and Floor, Acry Shield Stain, and Storm Stain for exterior painting and staining. In addition, for creating specialty paint finishes, both Old Masters and Modern Masters product lines are available.
“While color is a dominant feature of all painting projects, it is critical that the medium delivering the exact color selected onto the surface being painted performs and provides ease of application and cleaning, longevity and stands up to the rigors of daily living,” said Claybaugh. “And that is exactly what Kelly-Moore paints do.”
And for breadth of color selection, the new Petaluma Kelly-Moore store showcases the ColorStudio Collection with more than 1,700 colors, all reflecting the color intelligence of Kelly-Moore.