In the retail industry, what percent of losses are perpetrated by employees?

• A. Up to 70%.
• B. 50%.
• C. 30%.
• D. 10%.

Answer: (A)

The important idea here is how losses in retail are primarily driven by people inside the operation. In loss prevention, employee theft is recognized as a dominant source of shrink, often described as up to seventy percent. That means staff, who have legitimate access to cash, merchandise, and control systems, can cause losses more consistently and conceal them more easily than external thieves, especially over time. This reality explains why retailers emphasize strong internal controls: thorough hiring and screening, clear separation of duties, routine cash reconciliations, regular inventory counts, surveillance, and surprise audits. The other figures would underestimate the impact of internal theft and don’t align with the common industry view that employees contribute the majority of losses.