Studies show that the cause of shrink is much more likely to be the person behind the counter than customers entering the store. The average internal theft incident is also almost twice as expensive. Shoplifting is unquestionably an enormous problem in the retail industry. What many retailers do not realize is that while a third of shrink can be attributed to shoplifters, almost half of inventory loss is caused by employee theft. According to the 2005 National Retail Security Survey performed by Dr. Richard Hollinger at the University of Florida, an average shoplifting incident can cost $802.83 in inventory loss, but the average employee theft incident costs over $1,032!

Less than five percent of theft incidents in the NRMA Retail Theft Database are prosecuted, so there exists little criminal data for retail employers to screen applicants. Habitual offenders continue to move from one retailer to the next who is unaware of their history. The National Retail Mutual (NRMA) Retail Theft Database is a unique product that was designed to stem the tide of inventory loss by creating a partnership of retailers through information sharing that goes beyond criminal background checks.

NRMA membership is much more than a database search. Our retail advisory board includes loss prevention leaders from some of the largest retailers in the country, who stay on the cutting edge of inventory loss prevention initiatives. NRMA is a product of GIS, the leader in pre-employment, compliance and security solutions in the retail industry. Over the past 40 years, our customers have come to expect the highest quality of results and service that safely meet all regulatory requirements.

• NRMA currently has over 50 contributing retail members in just over a year!
• NRMA is the fastest growing contributory theft database in existence.
• The NRMA retail advisory board meets in person two times a year.
• 93% of all 2006 NRMA hits are internal theft cases.
• NRMA reported over $1.3 million dollars of theft incident information to their members in 2006.
• The average total incident amount that was reported to NRMA in 2006 was $2,852.53.
• The average total incident amount for internal theft that was reported to NRMA in 2006 was $2865.00.
• The average total incident amount for external theft cases that was reported to NRMA in 2006 was $333.00.
• The Department of commerce estimates that nearly 1/3 of the bankruptcies that occur in the US are caused by employee theft.

According to the 2006 National Retail Security Survey conducted by Dr. Richard Hollinger at the University of Florida:

• Retailers report an annual inventory shrinkage of $40.5 billion.
• 46.80% of all inventory shrinkage is attributed to employee theft. This translates to an employee theft price tag of $19 billion.
• The average admitted dollar loss per employee theft incident was a record $1,306.59, which is higher than 2005 figure of $1,032.27.
• The average dollar loss per shoplifting incident was only $346.46.
• 31.60% of all inventory shrinkage is attributed to shoplifting.
• 14.40% of all inventory shrinkage is attributed to administrative & paper error.
• 3.75% of all inventory shrinkage is attributed to vendor error.
• 2.65% of all inventory shrinkage is attributed to an unknown error.
• Retailers are forced to pass along these substantial profit losses in the form of higher product prices.
• The average length of employment for a dishonest worker was 10.72 months before getting caught for dishonesty.