The National Retail Security Survey is an annual report by the National Retail Federation (NRF) that examines inventory shrink, retail crime, internal theft, return fraud, and more.
This year’s survey reports shrink averaging 1.62% of a retailer’s bottom line, which is an all-time high. Given these results, it should come as no surprise that 52.2% of organizations surveyed plan to devote more resources to shrink-fighting technology, including remote monitoring systems, enhanced POS systems, and refund history tracking programs.
While most businesses are boosting their technology budgets, 26.1% also plan to allocate additional staff resources. Loss prevention (LP) awareness programs for employees are on the rise. Retailers increasingly report discussing LP during new hire orientation, addressing it in the employee code of conduct, having an anonymous “hotline,” and more. With 82.6% of respondents saying non-LP personnel cannot make shoplifting apprehensions, a robust LP team remains as important as ever.
Retailers are also extending their focus on organized retail crime (ORC) and ecommerce crime, with nearly 60% citing them as a greater priority than they were five years ago. Though ecommerce fraud is a growing concern for retailers, 49.3% still report fraud rising most for in-store sales.
The Zellman Group is a member and sponsor of the NRF. The NRF is the world’s largest trade association for the retail industry, advocating for policies, people, and ideas that fuel industry success.