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Retail Shrink and Loss-Prevention Methods—Presentation

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Loss-prevention events are becoming more frequent, impacting retailers’ profitability. As a percentage of total US retail sales, retail shrink represented $94.5 billion in losses in 2021, up 4% year over year. How are retail companies tackling security challenges?

On June 15, 2023, Coresight Research presented on retail shrink and loss-prevention methods.

In this presentation, we consider the factors causing retail shrink and the rise of ORC (organized retail crime), with examples of ORC and reports of shrink by notable retail companies. We also discuss retail investment in loss-prevention technology, including RFID and video surveillance.

Data in this report include:

  • Inventory shrink, by source
  • Increase in risk and threat priorities to retailers over the past five years
  • Reports of shrink by notable retailers in 1Q23
  • US cities affected by ORC
  • Retailers’ prioritization of loss prevention and investment in technologies to tackle shrink

Companies mentioned in this report include: Apple, CVS, Home Depot, Lowe’s, Target, Walmart

Other relevant research:

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