Hard Times Lead to an Increase in Stealing, Overshopping and Overspending
In the wake of the recent financial crises involving the mortgage, investment banking, and insurance industries, all eyes are on Barack Obama and the new administration to push all the right buttons for an economic turn-around.
Consumer and investment confidence teeters in the balance.
How do we survive during tough times--financially and emotionally? Most of us will somehow weather the storm without contributing to it.
However, these trying times are also stimulating two national epidemics which have been brewing for years if not decades: stealing (particularly shoplifting and employee theft) as well as overshopping and overspending.
In many cases, both behaviors arise from a combination of stress and other emotions and result in a temporary soothing; however, as with any addiction, the "cure" becomes worse than the underlying problems.
Final reports on retail sales showed that 2008-and the holiday shopping season in particular-was the worst on record in many years.
Yet, Internet sales increased from last year.
So, some people are still buying! Regarding theft, despite fewer shoppers and a decrease in sales, stores nearly unanimously reported an increase in both shoplifting and employee theft.
Recent statistics from the 20th Annual Retail Theft Survey by Jack Hayes International, Inc.
indicate that, during 2007, both shoplifting and employee theft rose sharply.
This news documents a trend that has been growing and, likely, will continue through the coming years.
The 2007 study estimates that there are nearly 300 million shoplifting incidents per year, costing retailers about $15 Billion.
626,314 shoplifters were apprehended from 24 of the largest retailers in America, up 9.
16% from 2006-no mention of the ones that got away.
For every $1.
00 recovered from retail theft, $37.
43 is lost (that's a 2.
67% recovery rate).
The study cited several reasons for the increase in shoplifting: poor economy, increase in organized theft rings, ease of selling stolen merchandise on the street and over the Internet, escalation of fraudulent returns, a reduction in sales floor staff and loss prevention and customer service personnel, a decrease in honesty in our society, and a growing perception that shoplifting is a "victimless crime.
" As shoplifting-and retailers' losses-increase, the price of goods increases and, in return, so does shoplifting.
It's a vicious cycle.
The 2007 stats on employee theft, which the FBI calls "the fastest growing crime in America," are no less startling.
One in every 28.
2 employees was apprehended for stealing from an employer.
82,648 employees were apprehended from 24 of the largest retailers in America, up 17.
57% from 2006, costing these retailers over $22 Billion.
The study cited several reasons for the increase in employee theft: poor economy reduction in employee supervision, relaxed hiring standards and pre-employment screening, and increase in part-time vs.
full-time employees (less loyalty), and a decrease in honesty in our society.
The study did not note, specifically, the increased stress of having to work for less money and benefits and the decrease in overall job security.
The U.
S.
Chamber of Commerce estimates that 75% of employees steal from work and that 30% of corporate bankruptcies are a direct result of employee theft.
As work becomes scare and lower-paying, stealing increases which results in less work.
Again, a vicious cycle ensues.
Now, some of this stealing is just plain greed and thievery.
But research shows that most people are otherwise honest and hard-working but reach a point where they start to lose faith in the fairness of the system.
This is not meant as an excuse but it is a reality we must deal with.
We are also beginning to recognize shoplifting (and stealing in general) as a potential addiction which can have complex origins.
Another trend which is fueling our societal financial dysfunction is a growing preoccupation and, yes, addiction to shopping and spending.
Keeping up with the Joneses is an endless endeavor.
In 2006, Stanford University completed a landmark study which estimated that nearly 17 million Americans (6% of the population) are compulsive "buyers.
" Men and women suffer from this affliction about equally.
This is a conservative estimate.
Many millions more may not have crossed over the line "yet" but are on the way there.
An obsession with things leads many into the stores to shop and, eventually, shoplift.
Many people steal from work to get money or things to ease their debts and burdens.
Again, this is not an excuse but a reality.
With retailers offering bargains "too good to pass up," will we be seduced again to "shop till we drop"? Remember: you have to spend money to save money.
While retailers rely on us to throw our hard-earned money (read: credit) their way, most of us will have to make some crucial decisions about our values and our lifestyles.
For those who are particularly vulnerable to compulsive shopping and spending, emotion trumps reason and will continue to lead many further down a hole until they receive help.
Indeed, we have a long road ahead of us, individually and collectively.
We need to get a handle on our priorities and our dysfunctional thinking and behavior.
This can be the best of times or the worst of times.
Or both.
Consumer and investment confidence teeters in the balance.
How do we survive during tough times--financially and emotionally? Most of us will somehow weather the storm without contributing to it.
However, these trying times are also stimulating two national epidemics which have been brewing for years if not decades: stealing (particularly shoplifting and employee theft) as well as overshopping and overspending.
In many cases, both behaviors arise from a combination of stress and other emotions and result in a temporary soothing; however, as with any addiction, the "cure" becomes worse than the underlying problems.
Final reports on retail sales showed that 2008-and the holiday shopping season in particular-was the worst on record in many years.
Yet, Internet sales increased from last year.
So, some people are still buying! Regarding theft, despite fewer shoppers and a decrease in sales, stores nearly unanimously reported an increase in both shoplifting and employee theft.
Recent statistics from the 20th Annual Retail Theft Survey by Jack Hayes International, Inc.
indicate that, during 2007, both shoplifting and employee theft rose sharply.
This news documents a trend that has been growing and, likely, will continue through the coming years.
The 2007 study estimates that there are nearly 300 million shoplifting incidents per year, costing retailers about $15 Billion.
626,314 shoplifters were apprehended from 24 of the largest retailers in America, up 9.
16% from 2006-no mention of the ones that got away.
For every $1.
00 recovered from retail theft, $37.
43 is lost (that's a 2.
67% recovery rate).
The study cited several reasons for the increase in shoplifting: poor economy, increase in organized theft rings, ease of selling stolen merchandise on the street and over the Internet, escalation of fraudulent returns, a reduction in sales floor staff and loss prevention and customer service personnel, a decrease in honesty in our society, and a growing perception that shoplifting is a "victimless crime.
" As shoplifting-and retailers' losses-increase, the price of goods increases and, in return, so does shoplifting.
It's a vicious cycle.
The 2007 stats on employee theft, which the FBI calls "the fastest growing crime in America," are no less startling.
One in every 28.
2 employees was apprehended for stealing from an employer.
82,648 employees were apprehended from 24 of the largest retailers in America, up 17.
57% from 2006, costing these retailers over $22 Billion.
The study cited several reasons for the increase in employee theft: poor economy reduction in employee supervision, relaxed hiring standards and pre-employment screening, and increase in part-time vs.
full-time employees (less loyalty), and a decrease in honesty in our society.
The study did not note, specifically, the increased stress of having to work for less money and benefits and the decrease in overall job security.
The U.
S.
Chamber of Commerce estimates that 75% of employees steal from work and that 30% of corporate bankruptcies are a direct result of employee theft.
As work becomes scare and lower-paying, stealing increases which results in less work.
Again, a vicious cycle ensues.
Now, some of this stealing is just plain greed and thievery.
But research shows that most people are otherwise honest and hard-working but reach a point where they start to lose faith in the fairness of the system.
This is not meant as an excuse but it is a reality we must deal with.
We are also beginning to recognize shoplifting (and stealing in general) as a potential addiction which can have complex origins.
Another trend which is fueling our societal financial dysfunction is a growing preoccupation and, yes, addiction to shopping and spending.
Keeping up with the Joneses is an endless endeavor.
In 2006, Stanford University completed a landmark study which estimated that nearly 17 million Americans (6% of the population) are compulsive "buyers.
" Men and women suffer from this affliction about equally.
This is a conservative estimate.
Many millions more may not have crossed over the line "yet" but are on the way there.
An obsession with things leads many into the stores to shop and, eventually, shoplift.
Many people steal from work to get money or things to ease their debts and burdens.
Again, this is not an excuse but a reality.
With retailers offering bargains "too good to pass up," will we be seduced again to "shop till we drop"? Remember: you have to spend money to save money.
While retailers rely on us to throw our hard-earned money (read: credit) their way, most of us will have to make some crucial decisions about our values and our lifestyles.
For those who are particularly vulnerable to compulsive shopping and spending, emotion trumps reason and will continue to lead many further down a hole until they receive help.
Indeed, we have a long road ahead of us, individually and collectively.
We need to get a handle on our priorities and our dysfunctional thinking and behavior.
This can be the best of times or the worst of times.
Or both.
Source...