India has been rated first on the retail theft parameter in Asia-Pacific countries, said the second annual Global Retail Theft Barometer-2008 survey. The survey, conducted among 920 large retailers across 36 countries by Centre for Retail Research, has find India with the highest shrinkage rate of 3.10 per cent, an increase of 6.9 per cent over last year. Centre for Retail Research is a UK-based manufacturer and supplier of retail shrink management solutions.
Thailand, South Africa and Malaysia are among the next to follow India in the global survey.
Commenting on the report, Dharmesh J Lamba, country manager, Checkpoint Systems India that funds Centre for Retail Research, said, “In India, most retailers do not consider shrinkage as a major concern. They do not realise that it is killing there bottom-line directly.”
Shrinkage losses are caused mainly by people stealing goods or money from the company (by customers, employees) and also by a range of small or large process errors, accounting lapses and pricing mistakes that produce apparent inventory losses.
In India, while external shrinkages were caused by customer theft which contributed around 44.7 percent loss, employee theft was responsible for 23.7 percent as compared to 8.4 per cent by suppliers, said the survey. However, administrative errors contributed to 23.2 per cent , added the survey.
In Asia-Pacific region including Australia, India, Japan, Malaysia, Singapore and Thailand, highest average rates of shrinkage were seen in apparel and accessories followed by vehicles and their hardware material retail, and cosmetics and pharmacy, added the report.