10.26.16
Apparel, children’s toys, electronics and electronic accessories are expected to be the most stolen items this holiday season in the US, according to the 2016 Retail Holiday Season Global Forecast.
The study, underwritten by an independent grant from Checkpoint Systems, Inc., was carried out by Ernie Deyle, a retail loss prevention analyst, and provides an analytical view of business risks that major retailers face during this holiday season. The 13 markets covered in the report span North America, Europe and Asia, and include the US, Belgium, France, Germany, Italy, Netherlands, Portugal, Spain, UK, Australia, China, Hong Kong and Japan.
In addition, the retail cost loss burden for the retailers surveyed in the U.S. for 2016 is expected to be $132 per person, of which $50, about twice as much as in other calendar quarters, is expected to be incurred in this holiday season. These increases in losses place an enormous burden on retailers and, ultimately, on consumers who pay for it in higher prices.
Strains on profitability manifest during the holiday season largely because of increased shrink/theft from internal sources — primarily via employee theft and other sales reducing activities (SRAs) — and external factors (primarily via shoplifting/organized retail crime).
“Building holiday inventories earlier and specifically for high-risk items may lead to increased sales reduction pressures, including markdowns and shrink throughout the fourth quarter,” said Deyle.
According to the report, the retail shrink rate for this holiday season in the US is expected to be almost double that of the prior two quarters. It notes that US retailers book 32% of all margin dollars for the year during the holiday season.
The report states that for most retailers, wholesalers and distributors, inventory — including the space to store it — is the largest single cost of doing business. While reducing inventory means lower costs, insufficient inventory leads to out of stocks, lost sales and unhappy customers. Balancing these two factors is critical to profitability and growth, particularly in omni-channel environments.
But achieving this balance is not easy. The alignment and use of advanced data analytic tools, inventory management strategies, along with technologies such as RFID provide retailers with advanced visibility to track merchandise as it moves throughout the supply chain to distribution centers, retail backrooms and store shelves.
The study, underwritten by an independent grant from Checkpoint Systems, Inc., was carried out by Ernie Deyle, a retail loss prevention analyst, and provides an analytical view of business risks that major retailers face during this holiday season. The 13 markets covered in the report span North America, Europe and Asia, and include the US, Belgium, France, Germany, Italy, Netherlands, Portugal, Spain, UK, Australia, China, Hong Kong and Japan.
In addition, the retail cost loss burden for the retailers surveyed in the U.S. for 2016 is expected to be $132 per person, of which $50, about twice as much as in other calendar quarters, is expected to be incurred in this holiday season. These increases in losses place an enormous burden on retailers and, ultimately, on consumers who pay for it in higher prices.
Strains on profitability manifest during the holiday season largely because of increased shrink/theft from internal sources — primarily via employee theft and other sales reducing activities (SRAs) — and external factors (primarily via shoplifting/organized retail crime).
“Building holiday inventories earlier and specifically for high-risk items may lead to increased sales reduction pressures, including markdowns and shrink throughout the fourth quarter,” said Deyle.
According to the report, the retail shrink rate for this holiday season in the US is expected to be almost double that of the prior two quarters. It notes that US retailers book 32% of all margin dollars for the year during the holiday season.
The report states that for most retailers, wholesalers and distributors, inventory — including the space to store it — is the largest single cost of doing business. While reducing inventory means lower costs, insufficient inventory leads to out of stocks, lost sales and unhappy customers. Balancing these two factors is critical to profitability and growth, particularly in omni-channel environments.
But achieving this balance is not easy. The alignment and use of advanced data analytic tools, inventory management strategies, along with technologies such as RFID provide retailers with advanced visibility to track merchandise as it moves throughout the supply chain to distribution centers, retail backrooms and store shelves.