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Follow on Google News | India Tops The Retail Shrinkage Survey…..once AgainIndia has once again topped the list of the Global survey on retail theft.
By: ICPAR Mumbai “In India, Most Retailers do not consider Shrinkage as a major concern. Unfortunately it is an accepted fact. They do not realize that it is killing there bottom-line directly. For e.g. A jacket stolen in a store costing Rs. 2000/- as M.R.P. & the net margin of retailer being 10% i.e. Rs. 200/-; It will take Retailer to sell 10 Jackets to recover the cost of the stolen merchandise, i.e. Jacket.” Said Dharmesh J Lamba, Country Manager of Checkpoint Systems India Private Limited. According to the report, the countries with the highest shrinkage (as a percentage of sales) this year was: India (shrinkage 3.10% of retail sales), Mexico (1.68%), Thailand (1.59%), South Africa (1.59%) and Malaysia (1.53%). The lowest rates of shrinkage were found in Japan, Austria and Switzerland (all 1.01%), Germany (1.10%) and Denmark (1.20%). The total shrinkage in India in 2008 is a US $ 2.543 billions which is equivalent to 3.10% of retail sales – an increase of 6.9% as compared to 2007, when the figure was 2.90%. Of the external shrinkage in India, customer theft contributed around 44.7% of shrinkage losses, employee theft was responsible for 23.7% as compared to 8.4% by Suppliers / Vendors. The remaining 23.2% was contributed by Administrative errors. Further among the Internal retail theft; merchandise theft was thought to be responsible for 27.8% of internal fraud, whereas cash, coupons, vouchers or gift cards contribute 32.0% of internal fraud, refund fraud and false markdowns contribute 14.6% of internal fraud with a collusion of 19.1%. Besides this large financial frauds were responsible for 6.5% of the internal retail theft of 2008. The total costs of retail crime & waste loss in Asia-Pacific was $15,405 million with the largest source of loss being dishonest customers contributing $7,897 million. This is closely followed by employee thefts amounting to $3,503 million followed by Supplier & Vendor crime contributing $1,160 million. Lastly, the survey reported that internal or administrative error including accounting mistakes, pricing errors & process failures contributed to $2,845 million. In the Asia-Pacific regions including Australia, India, Japan, Malaysia, Singapore & Thailand; highest average rates of shrinkage were seen in apparel/clothing and fashion/accessories (1.71%) followed by vehicle/autoparts/ As a company dedicated to facilitating interaction between different participants in an inter-continental supply chain, Checkpoint Systems Inc. has been at the forefront of developing shrink-management solutions that deliver benefits globally. Sponsoring a global survey like this year after year is an indication of Checkpoint’s commitment to furthering the flow of information between the cardinal points of retail worldwide. ____________________________________________________________ About Checkpoint Systems Inc.: Checkpoint Systems Inc., established in 1969, is traded on the New York Stock Exchange with an annual company turnover of $930 million. It commands 45% market share worldwide in the Electronic Article Surveillance (EAS) systems and 80% in the radio frequency based EAS systems (anti-shoplifting systems). It provides shrink management solutions to over half of the world’s top 200 largest global retailers. It has a presence in 80 countries and a global network of more than 25 service bureaus in the world’s apparel manufacturing space; 32 direct subsidiaries throughout Asia Pacific, Europe & the American continent. Pantaloons, Metro Cash & Carry, Aditya Birla Group, Koutons Retail, Ritu Kumar, Lilliput are few of the many brands Checkpoint is associated with in India. # # # Planman Consulting is India's largest Multi Interest Consulting and Business services corporation engaging a variety of organizations, institutions and enterprises in diverse industry and government verticals. End
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