Retail shrinkage continues to expand
Shoplifting, employee theft and organized crime have combined to boost retail shrinkage to 1.58%, according to the National Retail Federation (NRF). These preliminary results, compiled from a survey conducted by Dr. Richard Hollinger of the University of Florida, compare with a 1.44% shrinkage rate in 2009.
According to the survey, total retail losses cost retailers $37.1 billion last year, up from $33.5 billion in 2009. NRF’s recently released Organized Retail Crime survey found that 95% of retailers have been victims of organized retail crime over the last 12 months.
The preliminary results found that the majority of retail shrinkage last year was due to employee theft, at $16.2 billion, accounting for 43.7% of total losses. Retailers reported that 18.7% of cases involved collusion between internal and external bad actors. Retailers lost $12.1 billion to shoplifting, which is 32.6% of the total losses. Other losses included administrative error ($4.8 billion and 12.9% of shrinkage) and vendor fraud ($2 billion and 5.4% of shrinkage). Retailers said that the cause of the remaining shrinkage was unknown.
United Stationers hires former USG exec
United Stationers, a leading distributor of office and business products, has hired Fareed Khan as its senior VP and chief financial officer, effective July 18. He will report directly to Cody Phipps, president and CEO.
Khan, 45, spent 12 years with USG Corp., where he most recently served as executive VP finance and strategy. His responsibilities included leading all finance, accounting, corporate strategy, information technology, pension and investor relations activities. Prior to that, Khan served as president and CEO of USG Building Systems, USG Corp.’s largest operating unit comprised of U.S. Gypsum Co. and USG Interiors Inc. Other senior level management positions held by Khan at USG included a variety of strategy, business development, marketing, supply chain management and general management roles.
Before joining USG in 1999, Khan was a consultant with McKinsey & Co., where he served global clients on a variety of projects, including acquisition analysis, supply chain optimization and organization redesign.
Khan succeeds Victoria Reich, who announced her planned departure from the company in November 2010 and has remained in her role to support a smooth transition.
Based in Deerfield, Ill., United Stationers reported 2010 net sales of approximately $4.8 billion.
Hitachi names new sales exec
Hitachi Power Tools has appointed Tim Hawkins as its director of home center sales for North American business, effective June 1. Hawkins previously served as director of outdoor power equipment for Hitachi Power Tools & Tanaka Power Equipment (a brand within the Hitachi Power Tools group). Prior to then, he was regional manager over the central United States for Hitachi. Hawkins first joined the company in 1998.
Headquartered in Atlanta, Hitachi Power Tools (Hitachi Koki USA) offers an extensive line of professional grade power tools and accessories for woodworking, metalworking, drilling and fastening, concrete drilling and cutting, outdoor power equipment products, as well as a complete line of pneumatic nailers, staplers, compressors and collated fasteners.