Surveillance Vertical Market — Retail Shrinkage 

A note from an article about “Retail Shrinkage” for surveillance vertical market.

1 ) It is estimated to take 1.36% of retail sales in 2007 which translates to US$98 billion
2 ) If breaks down in categories:
shoplifting (42%)
employee theft (35%)
administrative error (17%)
vendor fraud (6%)
3 ) In 2006, US only, 41.6 million retail establishments, and spent US$650 million on electronic security devices
4 ) Retailers in the US typically budget 0.5% of sales for loss prevention related services. It could exceed US$2.7 billion in 2008 (most on video surveillance and electronic article surveillance)
5 ) Retail stores is a fairly new concept in India (more than 13 million stores). Only high-end users ask for system integration. Most opt for recording only. 9/16 channels DVRs are most popular.
6 ) Retail sector in India expected to grow 30% in 2008 and is forecast to be among the five largest consumer markets by 2010.
7 ) Third is China, retail market grew to US$1.18 trillion in 2007, more than 15,000 stores opened. Expect to have growth rate of more than 11% until 2012.
8 ) Retail loss in South Africa are estimated at US$920 million per annum.
Internal theft 65%
Processing errors 10%
External theft 25%.
9 ) In North America, IMS Research had the electronic security market valued at over US$550 million in 2006 and retail video surveillance market was valude at US$437 million. (Pelco/Bosch/March Networks/Panasonic)
10 ) In Europe, IMS valued the market at $421 million in 2006 with Honeywell, GE, Bosch, Panasonic, Dedicated Micros, Siemens, Tyco, and Pelco. The retail video surveillance market was valued at over $322 million
11) Popular EAS (Electronic Article Surveillance) system: Sensormatic (Tyco) and Checkpoint Systems. More than 80% of top 200 retailers use Sensormatic

[from A&S International June 2008, Vertical Market Section]

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