Canadian retailers continue to experience challenging times with difficult domestic and global economies, changing consumer behaviour and an increasingly competitive retail landscape. While changing economic conditions will persist to greatly impact retailers, the results of our security survey for 2012 show signs of relative stability, as retailers redefine the role of loss prevention, the activities used to monitor threats and deal with criminal activity. The responses for the survey indicate that Canadian retailers are continuing to protect themselves against internal and external criminal activities and other sources of loss.
Retailers indicated that they employ theft prevention policies and procedures for internal and external theft, vendor or supplier fraud and pirating of intellectual property. Used in conjunction with new technology and proven theft prevention methods, most Canadian retailers have the capability to monitor and control recognized theft risks.
Although retailers continue to leverage a combination of policies, monitoring procedures and enhanced loss prevention technologies, respondents still reported shrink rates that ranged from a low of 0.4% to a high of 2.19%. By our estimates, total shrink dollars for Canadian retailers has increased since our 2008 survey to approximately $4 billion. For total retail in Canada, this equates to an average shrink of $10.8 million per shopping day.
Survey information was collected in August and September 2012, and is based on the respondents 2011 fiscal year. Responses were anonymously obtained using confidential web-based survey application software and therefore information was provided by respondents on a voluntary basis.