OPINION | SA has a massive problem with retail theft. It doesn't have to

Employee theft in the retail industry is pervasive in South Africa, exacerbated by low wages, employee dissatisfaction and the rising cost of living. A new study shows there are ways to curb this - without resorting to a Big Brother approach. 

As long as there have been shops, there has been shrinkage. The 1960 book ‘Modern Retail Security’ cites recorded instances of shrinkage – broadly defined as the loss of inventory due to employee theft, shoplifting, administrative error, vendor fraud, damage or administrative and cashier errors – dating back to 1597 England.

The data for Africa is typically scarce and outdated, but South Africa has amongst the highest shrinkage rates in the world, according to the Global Retail Theft Barometer of 2008. We ranked third highest out of 36 countries, with shrinkage totalling almost 2% of sales. Employee theft as a proportion of total shrinkage in South Africa was also among the highest of any region surveyed at about 37%. This makes it a critical focus for the country.