Reducing Retail Loss

Retail loss is a burden for everyone. Consumers face higher costs, businesses need to identify, report and restock missing items, and there is a risk of confrontation with potential offenders. Furthermore, protective and proactive measures must be taken to reduce costs.

According to Asia–Pacific retail shrinkage reports, India has the highest percentage of 2.12%, with 33.7% from external causes such as shoplifting, 20.5% from vendor or supplier losses, 18% from administrative losses and 26.9% from internal causes. India has a relatively low modern retail base, making the value of losses much higher than in other surveyed countries.

Main Causes​

The main causes of losses are

• Shoplifting (38%)

• Employee theft (39%)

• Process/administrative losses (16%).

Therefore, a strategy for any one of these drivers alone is not enough.

Recommendation​

It is recommended that a thorough business review is conducted to identify internal process gaps contributing to the loss and to determine quick, high-impact measures to take. Business leaders must also be proactive in discussing loss and supporting the strategy. In today’s tough economic climate, it is easier to save money than to make more.

Over the coming weeks, we will discuss a multi-faceted approach to reduce loss. This includes engagement, training, external resources, and analytics.

If you think your business could benefit from a confidential discussion about loss prevention solutions and partnering with Knighthood, please don’t hesitate to reach out.

We at Knighthood have been working with over 200+ organisations for over 5 years. We focus on ensuring high service levels at affordable prices. You can read more about why our customers choose to work with us.