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The logic was painful but simple- going
from a culture where you were on the other side of the
counter and the sales person handed over what you ordered,
to where everything seemed to be inviting and ready
to be grabbed (the invisible mirrors, and the unobtrusive
security marshals notwithstanding ), the pressure to
succumb to greed could overpower the generally docile
students.
It looks like the things have come a long way, baby!
Independent studies have shown now that in the United
States as many as one in twelve customers is a shoplifter,
and that shoplifters commit an average of 50 thefts
before being caught.
According to a joint study conducted by the National
Retail Federation and the University of Florida, theft
in the previous year, may have cost retailers a whopping
sum of $41.6 billion. The study released last Tuesday
found that the theft rate as a percentage of sales ticked
upward slightly to 1.61 percent of sales in 2006 from
1.60 percent in 2005.
A few of the shoppers at Wal-Mart and other retail
stores across the U.S. may be loading carts with merchandise
and strolling out without paying. Employees may also
be helping themselves with the goods they haven't paid
for.
Wal-Mart, the world's biggest retailer, which sold
merchandise little less than $350 billion last year,
may also be required to take a bigger hit of over $3
billion this year, according to retail consultant, quoted
in the CNN Money report.
Although, Wal-Mart has declined to offer any explanations
for the reduction in the gross profit margin of 0.1%
in the first quarter, analysts speculate this in part
to be due to "higher pilferage."
I ncrease in theft may be tied to Wal-Mart's highly
publicized decision last year to no longer prosecute
minor cases of shoplifting in order to focus on organized
shoplifting rings. Former employees also say staffing
levels, including security personnel, have been reduced,
making it easier for theft to occur. And a union-backed
group critical of the retailer's personnel policies
contends general worker discontent is playing a role.
Although Wal-Mart declined to reveal any details, analysts
suspect Wal-Mart -- which for years had a theft loss
rate that was half that of its peers -- is getting closer
to the industrywide average.
For the complete fascinating story read
Source: http://money.cnn.com
Will retail in India be afflicted by this malaise.
You bet. Hoe much? Only time will tell. But this will
be an area where the bottom line will be directly affected.
Tight mamagement controls will be required.
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