Share

The True Cost Of Shrinkage

Share on twitter
Share on linkedin
Retail Loss

According to the ‘Retail Security in Europe, Going beyond Shrinkage’ report, UK retailers lose almost £11bn annually in shrinkage – the highest of any country in Europe.

A European Problem

While the cost of both shrinkage and preventative measures is highest in the UK, retailers across France, Belgium, Finland, Italy, Germany, the Netherlands, Russia, Spain, Swede and Poland are also suffering, with the total economic cost of retail losses estimated at 2.1% of retail sector turnover, the equivalent of £43.6bn per year.

Hardest hit: grocery sector

The report reveals that, across Europe, shrinkage is most likely to affect the grocery and cash & carry sector. Grocers and convenience stores have an average shrinkage rate of 2%, with UK grocers alone reporting a cost of £4.4bn a year. The top five stolen items by value in food retail were named: alcoholic drinks, cheese, meat, sweets and canned fish.

If you’re looking to identify items that are subject to significant theft through self-checkouts, our technology delivers loss data on a granular product level, whilst simultaneously offering estate-wide checkout analysis.

Share on twitter
Share on linkedin
Abbie Cookson
Abbie Cookson

Further Reading

The Past, Present and Future in Shrinkage Data
All

The Past, Present and Future in Shrinkage Data

The UK is reported to have the highest level of shrinkage in Europe. The main cause of shrinkage in the UK is theft which accounts for over £5.5billion per year with over 1,000 daily incidents happening at the checkout! The top stolen items include the likes of delicious cheese, alcohol and sweets. A common way that sneaky shoppers are taking full advantage of less-than-intuitive self-checkout systems is by replacing expensive products with in-expensive products of similar weight!

Managing Retail Inventory in Real-time with IoT Enabled Stock Tracking
IoT

Managing Retail Inventory in Real-time with IoT Enabled Stock Tracking

Put yourself in the shoes of a customer; you go to a reliable store for a product that you really want, but it isn’t there! Immediate reaction? Go elsewhere. Stock shortages in supermarkets usually leave shoppers feeling frustrated and wondering as to why the goods aren’t available, resulting in the loss of business, which often goes to competitors.

Convenience Stores; The Inconvenient Truth of Retail Shrinkage
All

Convenience Stores; The Inconvenient Truth of Retail

Retail shrinkage is the destruction of profit margins through the loss of stock. Theft accounts for over £5.5 billion per year. This is hard for national chains to endure, but even harder for small convenience stores to cope with.

Case Study: Scaling with a Top Four UK Retailer

The Hark Platform revolutionised efficiency for a top 4 UK retailer. £0.5 million saved in 3 months. 600 stores nationwide. 368 million daily readings. 24,000 assets monitored.

Find out more about the Hark Platform...

Subscribe to Our Blog

Stay up to date with the latest industry news, platform developments and more.