India, the fifth largest retail destination globally, is also the most susceptible to menaces such as shoplifting and employee theft among others, said a survey.

India has the highest country-specific retail shrinkage rates-- reduction or loss in inventory due to shoplifting, employee theft-- across the world for year ended June 2009, according to the Global Retail Theft Barometer.

"While North America and Europe make up 40 per cent and 38.4 per cent, respectively, of global shrinkage, the highest country-specific rates were found in India, Morocco and Mexico," the survey added.

During the period under review, the level of global retail theft reached USD 114.8 billion, a significant increase of 5.9 per cent over last year's total of USD 104.5 billion.

The survey that covered 41 countries was conducted by Centre for Retail Research and funded by Checkpoint systems.

"While most businesses have suffered as a result of the recession, few have been as hard-hit as the retail industry," Checkpoint Chairman, President and CEO Rob van der Merwe said.

The survey further highlighted that the global costs of retail crime (the charge that crime imposes on retailers) was a whopping USD 120.5 billion including loss prevention costs.

Out of this shoplifting losses accounted for 40.5 per cent, employee theft (33.8 per cent), supply chain losses (5.3 per cent) and loss prevention costs (20.3 per cent).

The survey further highlights that the increase in shrinkage was largely due to recession.

"There is some criminological evidence that crime rises as unemployment rises and there are indications that crime is a much more important issue for retailers now than two or three years ago," Centre for Retail Research Director Joshua Bamfield and author of the study said.

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