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The True Cost Of Shrinkage

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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.

Abbie Cookson
Abbie Cookson
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Further Reading

clothing rail in retail store

Post-Covid Retail is Battling 2 Major Issues: Does IoT Solve Both?

It’s interesting isn’t it, how a single industry, like retail, can be simultaneously faced with two completely opposing challenges? On one side of the spectrum, the typical grocers are having to tackle rapid spikes in bulk buying alongside big-spending seasons, which results in supply chain and stock issues.

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