The total value lost by UK retailers through theft and internal error fell last year, but Britain still has the biggest retail shrinkage problem in Europe.


This year’s Global Retail Theft Barometer, compiled by the Centre for Retail Research for Checkpoint Systems, shows that UK retailers lost£3.8 billion to theft by customers, employees and suppliers and internal reporting errors in the 12 months to June 30.

Shrinkage was down 3.3 per cent on last year, but still amounts to 1.3 per cent of retailers’ turnover. The survey found that 43 per cent of losses were from customers, with theft by employees accounting for 35 per cent.

Retailers claimed that the reduction was because of better implementation of technology rather than greater support from police. “This is probably commensurate with the fact that most retailers are starting to take losses seriously,” said House of Fraser head of retail support Jerry Carter.

“Loss-prevention teams are becoming better in the use of technology – particularly data mining but there is still no indication that the police are coming on our side,” he said.

Across Europe, shrinkage rose for the first time in four years and totalled£20 billion. Spending on security in Europe has dropped to£5.3 billion. Globally, the UK has the third-biggest shrinkage problem, with the US and Japan the worst affected.