1. Richard Hollinger, Ph.D. Security Research Project 2005 National Retail Security Survey: Preliminary Report

2. Bird Flu Hits Florida!

3. Inventory Shrinkage as % of Sales

4. Shinkage levels by Category Average or above: Accessories = 4.7 (4) Home Center, etc. = 3.2 (9) Crafts/Hobbies = 2.6 (1) Supermarket = 2.4 (11) Drug / pharmacy = 2.2 (8) Women’s apparel= 1.6 (11) Men & Women’s app = 1.6 (13) Below Average: Department store = 1.5 (18) Household furnishings = 1.5 (6) Children’s apparel = 1.4 (3) Cards, gifts, etc = 1.4 (6) Discount/Mass merchandise = 1.3 (15) Sporting Goods = 1.3 (6) Jewelry/Watches = 1.2 (5) Entertain, media, games, etc = 1.1 (4) Shoes = 1.1 (7) Men’s apparel= 1.1 (2) Optical =.74 (1) Office Supplies =.83 (2) Consumer Electronics, appliance =.81 (4) Books, Mags & Music =.67 (1) Liquor, wine, beer, tobacco =.58 (2) Warehouse, club, etc. =.55 (2) Furniture =.21 (3) Cameras/Photo =.03 (1) 146 retail chains responded 136 = gave valid shrinkage % (All presented numbers may change slightly in the Final Report)

5. Annual Financial Impact Retail Sales = $2,334,750,000,000 Shrinkage % = x.016 _____________________________ Total $ Loss = $37,356,000,000 That’s nearly 37.4 Billion dollars!!

6. Sources of Shrinkage $ 12.2 Billion $ 17.8 Billion $ 5.5 B $ 1.9 B

7. Average $ Loss Per Case

8. Organized Retail Crime Statistics Only one-third are tracking ORC data Averaged 23.2 cases per $100 M in sales $46,353 dollar loss per case on average

9. Organized Retail Crime Task Force?

10. Cash, Check & Charge Losses (as a % of total annual sales)

11. LP Budget as a % of Total Retail Sales

12. Loss Prevention Strategies 1. Integrity Screening 2. Awareness Programs 3. Asset Control Policies 4. L.P. Systems

13. 1. Integrity Screening

14. What’s Hot* – Integrity Screening Criminal Conviction Checks (27.4%) Credit Checks (10.3%) Honesty Tests (8.9%) Drug Screening--laboratory (7.5%) Mutual Protection Association (6.8%) Driving History (6.8%) (* % planning more utilization in the coming year)

15. 2. Awareness Programs

16. What’s Hot* – Awareness Programs CD-ROM Interactive Training (28.8%) Orientation Discussion (25.3%) Training Video Tapes (24.7%) Bulletin Board Posters (23.3%) Web-based Communication (19.9%) Surveys about LP issues (17.8%) (* % planning more utilization in the coming year)

17. 3. Asset Control

18. What’s Hot* – Asset Control Exception-Based Reporting (34.2%) Refund Controls (21.2%) Inventory Bar Coding (16.4%) In-Store Transfer Control (15.8%) Void Controls (15.1%) POS Bar Coding/Scanning (13.7%) Employee Package Checks (13.0%) (* % planning more utilization in the coming year)

19. 4. L.P. Systems

20. What’s Hot* – LP Systems Digital Video Recording Systems (39.7%) Video Monitoring over Internet (39.7%) Live, Visible CCTV (28.8%) POS Data Mining Software (19.9%) Web-Based Case Management (15.8%) Live, Hidden CCTV (15.1%) POS exception-based CCTV (15.1%) (* % planning more utilization in the coming year)

21. Supporting Partners

22. Security Research Project Website http://www.crim.ufl.edu/research/srp/srp.htm Dr. Hollinger’s Email is rhollin@crim.ufl.edu