Retail theft and fraud in London up 10%

As though the financial downturn were not distressing enough, the weak economic system has resulted into a soaring retail crime by shoplifters, corrupt employees and organised felonious groups; and their despair in the downswing has caused these shoplifters and fraudsters to go for higher value merchandise, which they often sell at boot sales and on the internet.

It’s normal that during periods of financial depression that stealing become more widespread, but these criminal acts are costing retailers all over Britain over £3bn per year. This comes at a time while they’re confronted with falling sales and reduced profits.

A new survey has determined that retail theft and fraud increased by more than 9% last year; costing retailers throughout Britain over £3bn.

Additionally recent studies have shown that shoplifting, pilfering by employees and fraud accounts for 1% of gross sales reported the Retail Fraud study that carried out a survey of the largest retail outlets and supermarkets in the UK.

The research showed that shop floor retail security guards are used by just over half of retail merchants in the London area. While dishonest employees are by and large observed by other employees; possibly saving the retail sector £1.4bn.

The level of loss through retail theft and fraud is further bad news for the retail sector after they saw a 2.2% slump in their gross revenue during the first three months of 2012.
Studies, surveys and reports are numerous and just show the seriousness of retail crime and retail fraud. A further survey on security and loss prevention costs indicated that there is a need to also include in the costs of crime, since they’re significant and wouldn’t be called for without retail crime. During the period of 2012 and 201313 retail security and loss prevention cost retailers almost £1bn, a slight fall on the 2011 figures of -2.4%. These figures come from a representative sample study of 150 large retailers, who are responsible for over 25% of UK retail gross sales.

Naturally, whilst the economic system improves retailers could have grounds to hope for a decrease in retail crime and fraud rates. But whilst it published its June study, RILA likewise warned that organised retail crime is not expected to go down.

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