U.S. retailers continue struggle with employee theft

*Employee theft far out-paces shoplifting

*Tech solutions yield some surprises

By Ian Sherr

CHICAGO, July 10 (Reuters) - Walking the pharmacy aisle of a Target Corp (TGT.N) discount store, shoppers can't miss the many anti-shoplifting measures: locked display cases, alarm cords around boxes of expensive merchandise, display hangers with locks on the end.

Those represent only a fraction of the anti-theft advances created over the years to protect stores against shoplifters and organized retail theft gangs.

But what about the determined insider?

"It's like a big faucet that drips day in and day out," said Dr. Richard Hollinger, professor of criminology at the University of Florida and lead author of the National Retail Federation's annual security survey issued in June.

Stories of employee theft range from the occasionally pilfered apple to the dedicated thief who cunningly maps out areas security cameras can't see so they can steal anything from shoes or computers to baby formula.

One member of a cleaning crew removed the bottoms from cleaning fluid jugs so he could stuff them full of merchandise.