Shoplifting gives sleepless nights
Shoplifting gives sleepless nights to retailers .
A quick search on YouTube for shoplifters reveals just how prevalent it is. And if you are caught stealing in some of India's big retail outlets, you have to pay ten times the value of the product that you stole.
This may sound tough but retailers have no choice as a Frost and Sullivan report indicates that 50 per cent of losses in Indian retail are due to shoplifting. It's a statistic, which is a nightmare for retailers like Future Group's Big Bazaar.
"We think it will be about 50 per cent of the total shrinkage losses," said Sandip Tarkas, President, Customer Strategy, Future Group.
The fact is that for retailers, it's a constant battle between kleptomaniacs and superior technology that catches the kleptomaniacs.
According to a global survey, employees are responsible for 23.7 per cent of losses and customers account for 44.7 per cent of it. Thus, the combined estimated loss of goods is worth $2.54 billion.
"There is a significant shrinkage loss and for most part it is taken as a given. It must also be addressed that a large portion comes from employees themselves who give discounts or freebies to their friends," said Pinakiranjan Mishra, partner, Risk Advisory Services, E&Y.
According to the Global Retail Theft Barometer 2008 survey, India tops the list when it comes to shrinkage losses in retail followed by Mexico, Thailand, South Africa and Malaysia.
Here, retailers like The Loot give employees a reward of Rs 1000 if they catch customers shoplifting. But controlling the kleptomaniacs is still a tough job.