ShrinkageBy Heidi Chugg

What is SHRINK?

What is retail SHRINK?

Employee theft Shoplifting Administrative errors Vendor fraud

What is being stolen?

Apparel: accessories and outerwear

Grocery: Fresh meat and cheese

Health and Beauty: shaving products perfume/fragrance

Where are people stealing?

Countries with the highest shrink rate: India Russia Morocco

Countries with the lowest shrink rate: Japan Hong Kong Taiwan

Who is stealing from you?

Empl

oyee

The

ft

Shop

liftin

g

Adm

inistra

tive

Erro

r

Vend

or F

raud

0

10

20

30

40

50

60

% of Loss$ Lost (billions)

Preventing employee theft make a positive working environment implement internal controls hire honest people educate employees create an anonymous reporting system investigate every incident

Preventing shoplifting

customer service use recovery statements watch for signs of shoplifters

they avoid eye contact wander around the store wander in and out of the store several times appear nervous are often rude and say they don’t want help

Why do people steal?

one third of people steal because of depression

most people don’t steal because they are poor

people steal to make up for another loss in their life

How does shrink affect you?

Sources used

http://www.fibre2fashion.com/industry-article/7/652/retail-shrinkage1.asp

http://globalretailtheftbarometer.com/pdf/GRTB-2011-summary.pdf

http://specialtyretail.com/issue/2008/10/running-a-cart-or-kiosk/strategies_to_prevent_shoplifting_and_retail_theft/

http://www.shopliftingprevention.org/whatnaspoffers/nrc.htm