Inventory Shrinkage

Tables/Charts:

Inventory Shrinkage, 2008

Sources of Inventory Shrinkage, 2008

*Inventory Shrinkage, 2008** (NAICS Definitions, Percent of Sales)
	Shrinkage as Share of Sales
Total Retail	1.51%
Book/Magazine/Music Stores	0.87
Card/Gift/Floral/Novelty Stores	0.95
Craft/Hobby Stores	2.04
Department Stores	1.42
Discount Stores	2.07
Drug Stores	0.64
Electronics/Computer/Appliance Stores	0.29
Entertainment/Media/Games/Video/Music Stores	1.54
Furniture Stores	0.13
Home Center/Hardware/Lumber/Garden Stores	0.58
Household Furnishings/Houseware Stores	1.02
Office Supplies/Stationery Stores	0.88
Shoe Stores	1.45
Specialty Children's Apparel Stores	2.26
Specialty Men's & Women's Apparel Stores	1.85
Specialty Women's Apparel Stores	2.13
Sporting Goods/Recreational Products Stores	1.50
Supermarket/Grocery Stores	1.15
* Inventory shrinkage is the difference between the recorded value of inventory (at retail) based on merchandise bought and sold and the retail value of actual inventory in stores and distribution centers at the end of the year. The difference is then divided by "Total Retail Sales," and is reflected as a percent of "Total Retail." "Total Retail Sales" excludes automobile dealers, eating and drinking places, and catalog and non-store retailers because these categories were not represented in the survey.
Source: Richard C. Hollinger and Amanda Adams, University of Florida, Security Research Project, Department of Criminology, Law and Society, 2008 National Retail Security Survey

*Sources of Inventory Shrinkage, 2008 (Percent of Shrinkage)**
	Employee Theft	Shoplifting	Administrative Error	Vendor Fraud
Total Retail	42.7%	35.6%	15.4%	3.7%
Book/Magazine/Music Stores	35.0	41.7	17.3	2.7
Card/Gift/Floral/Novelty Stores	50.0	30.0	12.5	5.0
Craft/Hobby Stores	42.5	37.5	12.5	5.0
Department Stores	43.5	42.5	14.7	2.5
Discount Stores	36.3	30.9	25.0	4.6
Drug Stores	54.5	31.8	8.3	4.3
Electronics/Computer/Appliance Stores	32.5	42.5	20.0	2.5
Entertainment/Media/Games/Video/Music Stores	50.0	20.0	17.5	7.5
Furniture Stores	25.0	25.5	45.0	2.0
Home Center/Hardware/Lumber/Garden Stores	45.0	17.5	32.5	2.0
Household Furnishings/Houseware Stores	47.5	30.5	12.5	3.5
Office Supplies/Stationery Stores	40.7	38.7	15.3	2.7
Shoe Stores	58.8	27.5	7.5	3.8
Specialty Children's Apparel Stores	37.5	32.5	20.0	7.5
Specialty Men's & Women's Apparel Stores	46.1	37.9	13.4	3.4
Specialty Women's Apparel Stores	48.2	35.7	12.4	4.3
Sporting Goods/Recreational Products Stores	43.9	36.1	10.8	4.4
Supermarket/Grocery Stores	45.4	34.5	8.3	4.6
* Inventory shrinkage is the difference between the recorded value of inventory (at retail) based on merchandise bought and sold and the retail value of actual inventory in stores and distribution centers at the end of the year. The difference is then divided by "Total Retail Shrinkage" and is reflected as a percent of "Total Retail." "Total Retail Shrinkage" excludes automobile dealers, eating and drinking places, and catalog and non-store retailers because these categories were not represented in the survey. Sources of inventory shrinkage, totals may not add to 100 percent, as respondents could provide an "unknown" estimate in addition to the above categories.
Source: Richard C. Hollinger and Amanda Adams, University of Florida, Security Research Project, Department of Criminology, Law and Society, 2008 National Retail Security Survey