If fewer people shoplift, the shrinkage rate lowers and grocery stores have more room to play with the price because their margin is wider. This is why inner ci

If fewer people shoplift, the shrinkage rate lowers and grocery stores have more room to play with the price because their margin is wider. This is why inner city stores with higher shrinkage rates charge higher prices and why memberships stores like Costco which have almost no shoplifting losses at all can be so competitive. If facial recognition is able to reduce theft, prices will likely be competed downwards over time.