________________________________________________________________________________________________________________________
A proactive approach
Turning retail shrinkage from challenge to opportunity .
By Phil Matthews
The concept of ‘ retail shrinkage ’ - the loss of product from causes other than sales - is seemingly innocuous , but in reality , it describes an epidemic problem , caused by not only administrative errors , but also shoplifting and employee theft . These three factors are costing retailers in the United Kingdom losses of approximately £ 8 billion a year , more than in any other European country . And retail shrinkage shows no signs of slowing down : it has already increased 33 percent since 2018 , and shoplifting was up by a startling 25 percent year-on-year in 2023 .
With these figures , it is not surprising that retail shrinkage is quickly becoming one of the top concerns for industry leaders . However , while the problem is clear , what to do about it is less so .
Retail shrinkage is not a straightforward issue , and it negatively impacts both the top and bottom lines of the industry . There is good news though : there are ways in which retailers can tackle offenders and reduce losses .
14