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The average shrink rate has hovered around 1.4% of sales for the past decade[1]. We don't know exactly what shrink is because the rate is low enough companies
by iudqnolq 4y ago
The average shrink rate has hovered around 1.4% of sales for the past decade[1].
We don't know exactly what shrink is because the rate is low enough companies don't bother investigating in depth. It includes some mistakes and damage, employee theft, and shoplifting.
[1] https://www.cnn.com/2023/01/18/business/retail-shoplifting-shrink-walgreens/index.html https://www.cnn.com/2023/01/18/business/retail-shoplifting-s...
- retrac 4y ago> 1.4% of sales What are the margins in typical retail? If 10%, then that's some 10% of the margin lost to shrink. > In 2021, retail shrink hit $94.5 billion, I realize the economy as a whole is big, but that's still a pretty big number. Like, the budget of a large state's government. Still, not all of it is theft. As you say shrink is a larger category than that.
- iudqnolq 4y agoWhat I was trying to point out is that contrary to the breathless reporting this isn't a new problem and it isn't getting worse. So it's unlikely any recent phenomenon is to blaim.
- deleted 4y ago[deleted]