The cost of retail shrink
Forbes reported that, based on a 2018 survey by the National Retail Federation (NRF), shrink, or loss of inventory related to theft, shoplifting, error, or fraud, is reducing the bottom line by US$46.8 billion across the US retail industry. The report found that shrink costs retailers about 1.33% of sales, on average. The average cost per shoplifting incident doubled to US$559. The average costs of return fraud was US$1,766.27, with a median of US$171. The average dollar loss per dishonest employee was US$1,203.16. In 2019, retail crime remains one of the most serious problems facing the industry. You can download the full NRF 2018 National Retail Security Survey here.