Retailers are accustomed to managing a certain amount of shrink in their businesses. However, in an age where corporate financials are under the microscope on a regular basis, managing shrink should remain a priority for retailers. One key tactic for decreasing shrink at outlets with the highest loss rates is implementing a high-shrink program, which marshals resources from all levels of the retail organization.
A carefully planned and managed high-shrink store program can increase the impact of an overall loss-prevention program, and accomplish what an overall loss-prevention program cannot: It can drive results by focusing many resources on a concentrated group of stores. This in turn will impress shareholders, vendors and other key constituents, as such a program gives retail companies the ability to noticeably impact revenues or earnings per share.
In addition to the benefits mentioned above, this paper discusses the parameters of a high-shrink program, how to determine if a company should consider implementing one, and other considerations around implementing such a program.
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