From a statistical perspective, what accounts for the largest share of retail losses?

Employee theft accounts for the largest share of retail losses due to the significant impact of internal theft on a retail business's bottom line. This type of loss can include various forms of dishonest behavior by employees, such as stealing cash, merchandise, or even manipulating sales transactions to their advantage. Research often shows that employee theft can outpace other forms of loss due to the frequency, scale, and sometimes the insider knowledge that employees have about security systems, inventory, and operational procedures.

In contrast, while shoplifting and organized retail crime are substantial concerns, they generally represent a smaller percentage of total losses compared to the impact of internal employee theft. Administrative errors, though they can contribute to financial discrepancies, do not have the same direct impact as theft by employees, who may exploit situations and systems to their benefit. Therefore, understanding the dynamics behind employee theft is crucial for developing effective loss prevention strategies in the retail environment.