Retailers Seek Data-Driven Solutions to Stem Rising Tide of Inventory Shrinkage
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Shrink, or inventory loss, cost retailers over $100 billion in 2022, more than doubling in the past 5 years. This shrinkage crisis is capturing attention across the retail industry.
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Shrink has many causes beyond just shoplifting, occurring across the retail value chain from distribution to stores, involving employees, customers, and third parties.
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Retailers need a data-driven approach to measure and diagnose the specific sources of shrink in their operations before deploying targeted mitigation techniques.
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Connecting data points across the organization provides context to shrink and allows more precise, less disruptive solutions to be implemented.
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A strategic, holistic approach is needed based on understanding the unique shrink profile through aggregating, analyzing, addressing, and monitoring data.