Pilferage Plundered China's Retail Industry of USD27 Billion Last Year
Yicai Global
/SOURCE : Yicai
Pilferage Plundered China's Retail Industry of USD27 Billion Last Year

(Yicai Global) June 2 -- China's retail businesses lost USD27 billion (CNY181 billion) to thievery last year, at a proportion of 0.71 percent, a rate that has been on the rise in the past five years.

Employee pilferage and third-party theft were the main causes of these business losses, the latest report shows.

The Loss Prevention Committee of the China General Chamber of Commerce outed this conclusion in the Sixth National Commercial Security Report it issued yesterday.

The average single loss from internal theft was CNY486, while that from external larceny was CNY298. The report fingers these two culprits as the main causes of such business losses. Therefore, internal theft control is a primary task in commercial loss prevention. The major means of internal theft was theft of goods, while the lesser means was purloining cash, the report reveals.

Internal theft via fraud and corruption has now become the new vehicle of choice. Goods or assets are stolen in collusion in this way. As the most covert form of peculation, it tends to garner less attention from retail managers, the loss prevention committee's investigation found.

Many retail enterprises have begun to pay attention to compliance management and have formulated codes of professional ethics, such as Wumart Stores, Inc. [SEHK:1025], JD.com Inc. [NASDAQ:JD], Carrefour SA [EPA:CA] and Wal-Mart Stores Inc. [NYSE:WMT], have achieved significant results in lessening such shrinkage, believes Cao Xiaoning, director of the loss-prevention committee.

The committee will tolerate zero corruption within the industry, and will exchange and share negative information on employees guilty of corrupt acts through the commercial industry employee-credit database, Cao noted. When appropriate, the committee will further engage in cross-industry information exchanges to form a positive synergy of cross-industry anti-corruption efforts, Cao noted.

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Keywords: Retail , THEFT