How 'shrink' became the biggest story in retail

Retail theft, known as "shrink," is becoming a growing problem for retailers, leading to concerns over profits and prompting companies to take preventative measures, such as installing locked cases and removing certain items from stores.

yahoo.com

Relevant topic timeline:

8/22/2023

Retail's true crime story: Top execs say rise in theft is cutting into earnings (NYSE:M)

Several major retailers, including Dick's Sporting Goods, Lowe's, Target, and Macy's, have cited an increase in theft as a factor in their reduced earnings and are taking steps to address the problem.

8/24/2023

Dollar Tree says theft is such a problem it will start locking up items or stop selling them altogether

The rise in retail theft nationwide is being blamed for Dollar Tree's decline in gross profit margin, prompting the company to take defensive measures to prevent further losses.

8/24/2023

Retailers are raising the alarm about theft. For this department-store chain, it’s been ‘within our plans.’

Nordstrom executives stated that levels of theft at their stores have not exceeded expectations, despite a recent massive robbery at one of their locations, although they acknowledged that losses from theft are at historical highs and need to be addressed.

9/3/2023

Toothpaste, chocolate, deodorant under lock & key: US retailers voice alarm at rising theft, 'flash rob' attacks - Times of India

Retailers in the US, including Walmart, Target, and CVS, are experiencing an increase in theft and organized shoplifting, leading to heightened security measures such as locked shelves, padlocked refrigerators, and scattered call buttons, in an effort to combat the rising issue that is impacting their earnings.

9/8/2023

Retailers Blame Theft for Shrink Losses, But Data Shows Complex Causes Behind Inventory Shortfalls

A number of retailers are attributing their lackluster profits to shrink, but the extent of the problem varies widely among companies and may not be as dire as some have suggested, with losses generally in line with the retail industry standard of 1% to 1.5% of sales, according to a CNBC analysis.