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Current DateTime: 07:25:03 10 Jul 2009
LinksList Documentid: 23279679
Expiration DateTime: 7/10/2009 7:27:39 AM

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It's a make-it or break it time for retailers. The holiday selling season is always a critical time for retailers, but this year this may be even more true. With several retailers already falling victim to a drop in consumer spending, and filing for bankruptcy, retailers will be navigating through some tricky waters. Consumers are strapped for cash due to high energy and food prices, and unemployment is rising. The recent credit crunch has made it more challenging for retailers and consumers to borrow.

This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.
 
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Jun.04
11:45 AM ET
Wednesday, 4 Jun 2008
Retail Theft Up But Is Bad Economy The Cause?

Shoplifiting sign
haledavid1
Shoplifiting sign

A record number of retailers--85%--say that they've been victims of organized retail crime in the past 12 months. That's up 6% since 2007.

Is this a Jean Valjean effect? In other words, is the tough economy driving shoplifting and organized retail theft? Or is this the result of increased accessibility of online resale markets and consumers willingness to buy from non-traditional third party merchants?

According to the NRF, nearly two-thirds (63%) of retailers experienced an increase in online resale of stolen items or "e-fencing" during the past 12 months. Maybe this illegal online market is booming because consumers are now comfortable with buying from eBay or unknown merchants if the price is right.

Whatever the reason, the result is a pricey problem for stores. Retailers spend approximately $230,000 per year on labor costs to fight organized retail crime each year. Some large retailers who have been directly affected by retail theft can spend upwards of $1 million a year to counter those kleptos. That's a significant sum particularly in a tight spending market.

So there ya go. I thought this was a juicy retail detail topic.

Questions? Comments?

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