Retail shrink added up to nearly $100 billion in losses for retailers in 2021. How are retail loss prevention teams addressing the key drivers of the retail security risks causing retail shrink?
The National Retail Federation surveyed a cross-section of retail loss prevention professionals to study the causes of retail shrink, shifts in loss prevention tactics, the impacts of organized retail crime (ORC), adoption of retail fraud technology to assist in retail shrink management, and other priorities. The survey, conducted in partnership with the Loss Prevention Research Council and sponsored by Appriss Retail, found the average retail shrinkage rate of 1.4% is driven primarily by shoplifting, ORC, and employee theft. However, of most concern is the 26.5% increase in ORC incidents.
Retail shrink is the financial loss experienced by retailers due to various factors like theft, errors, and unknown occurrences. It includes shoplifting, organized retail crime, return fraud, and employee theft as significant contributors. Technology, such as data analytics and AI, offers valuable tools to identify and prevent shrinkage. By staying vigilant, collaborating with others, and adopting innovative solutions, retailers can fortify their defenses and build a safer, more profitable future.
Download your copy of the report to dig into the survey findings and learn key strategies for minimizing security risks at your organization.