According to the 2020 National Retail Security Survey of the National Retail Federation (NRF), shrink is at an all-time high. In 2019, it accounted for an average rate of 1.62% of inventory, calculated at retail, costing the industry a record $61.7 billion. Moreover, the issue is remarkably widespread, with seven in 10 retailers reporting shrink rates above 1%. Aside from the massive financial impact to retailers’ bottom lines, shrink impacts retailers in other, less visible ways.
This white paper discusses the major types and causes of retail shrink, along with best practices and emerging trends in loss prevention and shrink mitigation.