Holiday Season in Hong Kong: Good for Sales, Good for Theft

With the holiday season fast approaching, a study report reveals that retailers around the world will experience both their highest sales and shrink distributions during this period. According to the 2016 Retail Holiday Season Global Forecast, 30% of the losses Hong Kong retailers incur due to internal and external theft will come during the holiday season, with apparel, children’s toys and electronics emerging the favourites among thieves.

Theft from internal sources (primarily via employee theft and other sales reducing activities) and external factors (primarily via shoplifting/organized retail crime), which is referred to as shrink by retailers, is at its peak during the holiday season, which also sees 27% of annual retail sales of a retailer in Hong Kong .

The study, underwritten by an independent grant from Checkpoint Systems , Inc., was carried out by Ernie Deyle , a retail loss prevention analyst, and provides an analytical view of business risks that major retailers face during this holiday season. The 13 markets covered in the report include North America , Europe and Asia , and include the U.S., Belgium , France , Germany , Italy , Netherlands , Portugal , Spain , UK, Australia , mainland China , Hong Kong and Japan .

Mark Gentle , Vice President — Merchandise Availability Solutions Asia Pacific, Checkpoint Systems, said, “Building holiday inventories earlier and specifically for high-risk items may lead to increased sales reduction pressures, such as markdowns and shrink throughout the fourth-quarter. The report reveals that nearly 30% of sales reducing activities are incurred during this time period. This leads to increased shrink, and puts additional strains on brick-and-mortar retailers already reeling from an ongoing inhospitable retail market.”