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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.

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Abbie Cookson
Abbie Cookson

Further Reading

Convenience Stores; The Inconvenient Truth of Retail Shrinkage
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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.

Retail Crime
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Retail Shrinkage – Losses Caused by Crime

The category presented in the table focuses on shoplifting and organised retail crime, with external theft accounting for 34.6% of total retail shrinkage.  With retailers

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At the Edge of The Retail Industry

IoT has already proven itself extremely beneficial in the retail sector across multiple applications from delivering efficiency in energy consumption to monitoring stock levels in real-time.

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...

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