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Theft, fraud, and losses from other retail “shrink” totaled $50.6 billion in 2018, up from $46.8 billion the year before.
Strong customer service is one of our most effective tools and most proactive means to control theft and other losses on the retail selling floor.
The NRSS indicates that shoplifting accounted for 35.7 percent of the reported shrink in 2017, which is down from 39.3 percent in 2016.
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.
Too often, there is a failure to acknowledge achievements during the audit process, which as a result tends to emphasize a negative undertone. This tendency can and will influence the entire process.
Between the physical and online space, ever-diminishing timelines, and the possibilities of pinpointing stock on its return journey (the so-called reverse logistics model), you have all the ingredients for a parallel universe where nothing is quite what it seems.
Not every solution needs to feed into the crime prevention arms race. An important foundation, say researchers and industry experts, is for retailers to assess whether their basic control policies and procedures might be inadvertently contributing to employee dishonesty.
Can ignoring the causes of shrinkage and refocusing strictly on sales solve our inventory issues?
The three major causes that contribute to inventory shrink in any retail operation are internal theft, external theft, and operational compliance. An effective loss prevention program must focus on all three of these areas.