Thursday, 12 November 2009

  • Store Theft Cost: $435 Per Family




    Last year, U.S. merchants suffered an almost 9% increase in store theft, passed on to consumers in higher prices. Crimes such as shoplifting ($15 billion), employee theft ($18.7 billion), and supply chain fraud ($6.8 billion) rose to total over $40 billion and cost the average American family about $435 in extra expense.

    Most vulnerable items: perfume, cosmetics, razor blades, leather products and electronics, including the Nintendo Wii, iPods, cell phones laptops, and GPS devices. In grocery stories, thieves go after fresh meat and cheese. Most of these items are stolen for resale rather than personal use, and much of the money furthers other criminal activities. And additional operational costs affect manufacturers and distributors as well, because retailers do not have accurate inventory numbers when goods are stolen.

    Retailers want tougher federal legislation to make organized retail crime part of the federal criminal statutes, so that law enforcement officers and prosecutors have more tools to jail these criminals. Repeat shoplifting already carries harsh penalties in some states, including felony charges and jail time. Impulsive teens, forgetful older folks, and people with compulsive psychological disorders can find themselves in serious trouble for shoplifting.

    While shoplifting is an important problem, note that employee theft of goods costs businesses almost as much. Employee theft can vary from taking home a few pens or other office supplies to stealing of inventory from the stockroom or food from a restaurant.

    What businesses crack down on employee theft? What do you think should be done?

    Source: CNNMoney.com

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