Retail Merchandiser Volume 64, Issue 4 | Page 15

________________________________________________________________________________________________________ Shrinkage
Getting to grips with the complexity of retail shrinkage
The UK ’ s retail sector is made up of a variety of businesses , each with its specific challenges . However , retail shrinkage affects everyone , and over the last year has risen up the agenda in terms of importance . It is a multi-layered challenge that requires deep understanding if it is to be tackled . The reasons behind its growth fall into an ever-growing array of causes , from process and control failures to external and internal theft , damage , and waste .
These sources of retail shrinkage are currently being compounded by several other factors . Perhaps the most obvious is economic headwinds , as inflation and the cost-of-living crisis put both retailers and consumers under financial pressure , affecting shrinkage rates and security investments .
But there are also other contributory factors at play , both internal and external to retailers . Within the industry , there are some ineffective loss prevention strategies , as retailers with outdated or
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