Retailers Wrongly Think Shrink Is Worse for Competitors: Survey

Most major retailers wrongly perceive that shrink is a bigger problem for their competitors than for their own organizations, according to a new research report from the Loss Prevention Research Council.

CAMBRIDGE, Mass. — Most major retailers wrongly perceive that shrink is a bigger problem for their competitors than for their own organizations, according to a new research report from the Loss Prevention Research Council. According to the study of 107 U.S. retailers, sponsored by Intellivid here, only 10% characterized their shrink as high compared with competitors, while 65.5% said it was average. One reason for this result may be that there is no agreed-upon shrink measurement method, according to the survey. While 42.9% of respondents said their companies measure shrink “at cost,” 57.1% reported their companies measure shrink “at retail price.” “If you compare apples to oranges, you are likely to obtain illogical results,” said Read Hayes, director of the Loss Prevention Research Council, in a statement. “That’s why our research team strongly encourages retailers to standardize how they really measure shrink, preferably using the retail method.”

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