Hong Kong shoplifting costs retailers $4.32 billion annually, or an average of $1816 for every Hongkonger to shoulder.
The latest edition of the 2014-15 Global Retail Theft Barometer commissioned by Checkpoint Systems, says while Hong Kong’s overall crime rate fall to a 41-year-low last year, there was no drop off in retail theft.
Retail crime (which includes shoplifting, dishonest employee theft and vendor/supplier fraud) cost $4.89 billion – the highest in three years – and accounted for 95 per cent of the $5.15 billion retail shrinkage cost in Hong Kong in 2014, (the balance due to administrative errors).
The report says shrinkage cost the global retail industry more than US$123 billion in 2014, representing 1.23 per cent of worldwide retail sales on average.
Overall shrinkage for Hong Kong was 1.05 per cent of total retail sales. The rate has in fact decreased compared to 2013 (1.09 per cent) and 2012 (1.10 per cent).  However, the proportion of shoplifting in total retail shrinkage is at its highest in three years at 84 per cent (HK$4.32 billion), compared to 55 per cent ($2.3 billion) in 2013 and 59 per cent ($2.5 billion) in 2012.  
The proportion was also the highest among the four Asia Pacific markets surveyed, well above that of Japan (66 per cent), mainland China (55 per cent) and Australia (39 per cent).   
Denim fashion items, batteries, mobile device accessories, infant formula and cosmetics were among the most targeted by shoplifters and dishonest employees in the Asia Pacific, who sought to steal items that are easy to conceal and have a high resale value.
Commenting on the findings, Ken Ng, MD for Greater China at Checkpoint Systems, said, that despite rising retail crime, employee theft is at its lowest level in three years at six per cent.
“Retailers in Hong Kong are spending the most on loss prevention measures, investing 1.68 per cent of total revenue, compared to the global average of 1.19 per cent and the Asia average of 0.97 per cent, and this is helping to curb shrinkage internally.
“Most are using a combination of smart loss prevention and RFID (radio frequency identification) solutions, alongside increased manpower, to help reduce out-of-stocks, improve merchandise availability for consumers and increase sales but the retail industry is looking at doing more to combat overall shrinkage, particularly losses that relate to high-tech crime,” said Ng.
The most popular loss prevention solutions in the Asia Pacific were electronic article surveillance (EAS) labels, hard tags and antennas, buckles with alarms and locked display boxes.
The study, commissioned by Checkpoint Systems was conducted by The Smart Cube and Ernie Deyle, a retail loss prevention analyst. It was based upon in-depth phone and written survey interviews conducted in 24 markets among 203 retailers representing US$996.2 billion in sales in 2014.