Beyond the Usual Inventory Shrinkage Definition: Total Retail Loss
There is little consensus on what constitutes “loss” within the retail world nor how it should be measured. The terms “shrinkage” and “shortage” have been loosely applied to encapsulate some of the areas that generate loss, but they are not terms enjoying a clear and agreed-upon definition across the sector.
Significant Inventory Loss Requires Perspective
Throughout my career, I've investigated numerous significant increases in shortage on a multi-store level. In each case, the cause was traced to the distribution process.
How to Analyze Retail Shortage Control Measures in the Supply Chain
The bedrock upon which healthy retailers are built is the supply chain that provides the goods to be sold. A retailer’s competitiveness, then, or lack thereof, is in measurable part a reflection of the extent to which these avenues of supply are cost effective and efficient.
3 Principles to Help Your Team Counteract Bad Packaging Design
Few things are as frustrating for a loss prevention leader than discovering a bad packaging design they know will promote retail shrink— a feature which could easily have been prevented.
What Causes Shrinkage in Retail? Addressing the 4 Top Causes
Not every loss prevention tool fits the needs and budget of every retailer. However, a combination of tactics makes an impact and reduces a store's shrinkage.
From Manufacturer to Retailer: Product Protection Is Everyone’s Job
Solutions to address theft and loss are often led from the retailer side of the partnership, but manufacturers do face responsibilities when it comes to product protection. From manufacturer to retailer, product protection is everyone's job.
Why Point-of-Sale Activation Technology Has Been Heralded as a Kingmaker
In a world where opposites attract, denial of service could be a force for good and put to commercial use, particularly in retail where organized retail crime gangs and opportunist thieves have had a free hand at disrupting legitimate business.
RESEARCH: Losses and Costs Associated with Grocery Store Magazines and Newspapers
The ECR Community Shrinkage and On-shelf Availability Group had become aware of growing concerns about the losses relating to the sale of grocery store magazines and newspapers in the UK—a category not normally associated with high levels of loss.
The Dramatic Metamorphosis of Point-of-Sale Systems
In a study presented at a 2017 conference on business innovations, mobile self-checkout solutions were found to provide a more time efficient shopping experience, particularly when stores are crowded.
How to Calculate Shrinkage in Retail
Understanding how to calculate shrinkage in retail is important. However, understanding why it is important to control these results and how we can impact company profitability by both improving sales and controlling retail shrinkage is the key to success.
