Retail Security Statistics 2009 Examined

Author: John Honovich, Published on Nov 03, 2009

How can retail security losses be used to justify the use of video surveillance and security systems?

Within the security industry, retail may be the most rigorously quantified market. Unlike many security applications that defend against very high value but rare instances (think government and terrorism), retail security deals with constant security threats that can be measured. This helps in calculating ROI for the use of technology systems such as video surveillance.

In October 2009, the annual National Retail Security (for the US market) was released. The headline was that shrink was up (from 1.44% to 1.51% between 2007 and 2008).

A main theme from the report is that while video surveillance is considered a 'hot' tool for retailers, it is one element in a larger system that requires other processes and technologies.

Final note, these numbers may be contrasted to a 3rd party report of 22 retailers from September 2008 (premium).

*** *** ****** ******** ****** ** **** ** ******* *** use ** ***** ************ *** ******** *******?

****** *** ******** ********, ****** *** ** *** **** ********** quantified ******. ****** **** ******** ************ **** ****** ******* **** high ***** *** **** ********* (***** ********** *** *********), ****** security ***** **** ******** ******** ******* **** *** ** ********. This ***** ** *********** *** *** *** *** ** ********** systems **** ** ***** ************.

** ******* ****, *** ****** ******** ****** ******** (*** *** US ******) *** ********. *********** *** **** ****** *** ** (**** *.**% ** *.**% ******* **** *** ****).

* **** ***** **** *** ****** ** **** ***** ***** surveillance ** ********** * '***' **** *** *********, ** ** one ******* ** * ****** ****** **** ******** ***** ********* and ************.

***** ****, ***** ******* *** ** ********** ** **** ***** ****** ** ** ********* **** ********* ****(*******).

[***************]

Shrink ********** *** ******

********* ******* ** **** ****** **** *** **** ** *****, shrink ******* ** ** ********. ** *** ***** *****, ****** was ***** ** *% *** *** ** **** ** ************* *.*% ** sales.

**** ****** *** ** **** **** (*.** **. *.**). *******, given *** ************ *** *** ********* ** *** ******* *** survey, ** *** ** ********* ** **** * ********** ********** (for ******** ** ****, *** ****** ******** *** *********** *** only *** ** ****).

** ******* ****** *****, *** $**.* ******* ****** **** ** retailers **** ****** ** ** ********** ***** ** *********** *** shrink **** ** *.**% ***** *** $*.* ******** ** ****** sales *** *** ** ****** ******.

Shrink ******** ** *******

*** ***** ** ****** ****** ************* ** ******* ** ********. While *** ******* ********* *** ************* ***** ******* ******, **** improvement *** ********* ****** ******** **** *** ******. ********* ****** keep **** ********* ** **** ** **** ****** ** ***** solutions *** ******* ****** ********.

Breakdown ** ******

****** ***** **** ********* *******. **** ****** ****** ** **** into * **********. **** * ** ***** ********** ********* ************* for *** *** ** ******** ******** ************ - ******** ***** and ***********. *** ***** ********** ********* ****** ***** *** ************** would **** ****** ** ** ****** **** *** *** ** physical ******** ************.

********* ********** **** ******** ******** ************ ****** ******, *** '***********' shrink ** ****** ** *.*% (** **% ** ***** ****** is ******** ** **** **** ************** *** ****** ***** ******).

******** ***** *** *********** ****** *** *** *** ******* ** shrink **** **.*% ** ****** ****** **** ******** ***** *** 35.6% **** ***********.

*** ****** ********** ** ******** ***** ** ********** ********* ** security ****** ********* **** ***** ** *** **** ******* *** less ****** ****** ** ***********.

*** ***** ********** ** *** ********* ** ****** ********** ** retail *******, ****** *** ******. *** ********** ** **** ** mind ** **** ******* ********** **** **** * ** * retailers ********* ***** ********* *** *********** ** ********** *******.

Loss ********** ******* *******

********* ** *** ******, ** ******* *** **** .**% ** retailer's **** ****** *****. ******* **** ** ***** ** *** decade **** ******* **** **** .*% ** ****** *****. ** that ******, **% *** **** *** ******* ********* **** ** security *******.

Loss ********** **********

***** ******** ******* *** ********** ** **** ********** **********, *** report ***** * ******* ** **** ********* *******:

  • ***-********** ********* ********* **** ** ******** ********** *** **** ********** history ***** *** ********** ** *** ***** ****.
  • **** ********** ********* ******** **** **** ****** **** **** **% of ********* ***** ********* ********* ******** *** ******** ***** *******
  • ****** ******* ********: *** **** ****** ******* ****** ******** *** POS ********* ***** *********. ********* *** ***** ************ *************, **** 90% ** ********* ******** ***** *** ********* ***** *********.
 
Use ** ***** ************ *** ******** *******
 
********* **** * **** ******* ** ******** *******. ***** ************ was *** ****** **** ******** **** ****** **** ** ******* alarms (**** **.*% ***** ******* ***** ********* *** **.*% ********* the *** ** ******* ******).
 
*******, ** ***** ** **** ********* **** ******* ** *** (considered '***'), ***** ************ ********* **** ****** *****, **** ****, digital ********* *** ***/**** *********** ****** * ** *** *** 5 ***** (*** ***** **** ** ***** *** **** ******).
 
**** ***** **% ** ********* ******** *** / **** *********** currently. ***** *** ****** ********* *** ** *** *** ****, this ** ******* *** *** ************ ***. *********** ******* ***** two ******* *** ****** **** ********* ******* ** *** ******** incompatible *** *** *** *******. *******, **** ** ********* ** opportunity *** ***** **** *** ******* **** **********.
 
**** ****** ***** ** ** ** *** ******* ** ****** (9.5% **** ** ****** *****) *** ******* ****.
 
Loss ********** ****** ** ******** *** ******
 
*** ****** ***** * ****** ** *********** ****** *** ************* in ******:
  • ******* ****** ** ******** ****** * ********* ****** ** ****** is ** ******. ***** *** **** ** *** ******** ***** problem, ******* ********* ***** ** * ***** ***** *********.
  • **** ********** ********* ** ****** ** **** ** ****** ******** turnover (******* ********, ******* ****** - ******* ******** **.*% ***** associates, **.*% ********** ********).
  • ******** ******** ****** **** *** ******** ***** ******** ** $*,*** USD. ** ******* *** ***** ** ***** * ** * employee ****** *** **** *** ****, *** ****** *** *** for ****** (********* ** *** **** ** *** *****, ***** cameras ********). **** ******* ** ******* *********** ****, ***** ** significantly *****.
  • *** ******* *********** **** ** ******** ** $***.** ***. 
  • ***** ****** (******* ********) ** ********** ** * ***** *** ********* ** **** monetary *********** **** ***********. **** ** ** *********** ** ******** prosecution. ** *** ****** **** ***** ******'* *** *** ******* increases, **** **** ******* *** ***** ** ***** ****** *****. The ********** ********** ** **** **** ** ***** ** *** search ***** ***********, *** ********** ** ******** *** **** ***.
  • ***** **% ** *********** ** ********** ** ********* ****** *****. The ******* **** *** *** ** $*,*** ****** *** ****** does *** ******** ******* **** ** *** ***** ** ******* per ****.
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Competing Against Tyco IS / JCI on Jul 28, 2017
Mega-integrator Tyco Integrated Security has gotten even bigger with the 2016 merger with Johnson Controls. 110+ integrators told us what they...
Anixter - Falling Video Prices on Jul 26, 2017
Falling video prices are such a concern that it has become a notable topic for Anixter's financial results and Anixter's executives. In this...
Competing Against Convergint on Jul 24, 2017
No integrator is more aggressively expanding than Convergint Technologies. Owned and funded by private equity firm KRG, Convergint has acquired...
Competing Against ADT on Jul 20, 2017
ADT is one of the biggest players in the security industry, with ~$4 billion revenue. In 2017, they were acquired / merged with Protection...
Manufacturer Favorability Guide on Jul 19, 2017
This 120 page PDF guide may be downloaded inside by all IPVM members. It includes our 20 manufacturer favorability rankings and 20 manufacturer...
Hikvision Distributor Says Hikvision "Top Rated Yet Most Hated" on Jul 12, 2017
The CEO of 2M Solutions, a distributor selling Hikvision cameras under their own as well as Hikvision's brand has publicly declared Hikvision to be...
Security Trade Magazine Readership Statistics on Jul 10, 2017
150 IPVM members reported how many and what security trade magazines they read, both in print and online. Here are the key findings: Most do...
Best Manufacturer Perks on Jul 07, 2017
A decade ago, the best manufacturer perk was likely a trip on the Pelco jet: But the Pelco jet is long, long, long gone. What types of perks...
Hikvision USA Hires VP of Business Development on Jul 05, 2017
Hikvision USA is expanding again, this time in its drive to move up market to larger integrators and end users. In this note, we analyze...
IndigoVision Raids Avigilon Sales Team on Jul 05, 2017
If you can't beat 'em, hire their employees? This could be described as IndigoVision's most recent strategy to increase market share in North...

Most Recent Industry Reports

Competing Against Tyco IS / JCI on Jul 28, 2017
Mega-integrator Tyco Integrated Security has gotten even bigger with the 2016 merger with Johnson Controls. 110+ integrators told us what they...
Startup Strops Completely Wireless Surveillance Camera Examined on Jul 28, 2017
European startup Strops has developed a surveillance camera that offers up to 6 days of runtime and cellular communications to create a fully...
Babel Street Global Threat Monitoring Tool Examined on Jul 27, 2017
Intelligence on potential threats and terrorist attacks can often be found online hours, or days, before an actual event, particularly in obscure...
Canon Sues Avigilon on Jul 27, 2017
Canon, owner of Axis and Milestone, has sued Avigilon for patent infringement in US court. This is a highly atypical move for Canon, pitting 3 of...
Anixter - Falling Video Prices on Jul 26, 2017
Falling video prices are such a concern that it has become a notable topic for Anixter's financial results and Anixter's executives. In this...
Bosch G-Series Intrusion Tested on Jul 26, 2017
Bosch is one of the biggest names in intrusion, and the company's G-Series panels are their most advanced commercial and high-security panels. But...
Healthy Skepticism for Deep Learning Is Prudent on Jul 26, 2017
The hype for deep learning in video surveillance is accelerating. Between the race to the bottom and dearth of a 'next big thing', certainly pent...
$28M Drone Detection Startup Examined (Dedrone) on Jul 25, 2017
Dedrone has received ~$28M in funding to build what they call an "automatic anti-drone solution", a system to detect drones, and then automatically...
Dahua Suffers Second Major Vulnerability, Silent [Finally Acknowledges] on Jul 25, 2017
Less than 3 months ago, Dahua received DHS ICS-CERT's worst score of 10.0 for their backdoor. Now, Dahua has received another 10.0 score for a new...
Hikvision H.265+ Bullet Tested (2035) on Jul 24, 2017
Continuing our tests of Hikvision's new low cost Value Plus line, we bought and tested the 3MP DS-2CD2035FWD-I, now including H.265+. We shot the...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact