A benchmarking research session was recently held between loss prevention and finance leaders from ten prominent UK retailers, boasting a combined turnover of £192bn. The objective of the session, hosted by ECR Retail Loss, was to gain insights into the risk landscape, with a particular focus on shop theft – an area of significant concern.
During the session, each industry leader shared anonymised details of their shrinkage run rate, comparing it to the figures from 2018. The ECR Retail Loss research session also encompassed commentary and insights from the retailers themselves, shedding light on the factors leading to these losses and their corresponding responses.
“What’s particularly disturbing is the fact that, on average, losses have increased by one-third compared to pre-pandemic levels in 2018. For some retailers, this spike exceeded 50%,” explained Prof Adrian Beck, a participant within the benchmarking research session.
The retail industry is currently grappling with exceptional levels of loss. This development is unusual, as such significant increases are rarely observed in such a short span of time. While one might expect certain categories, namely health, beauty, or alcoholic beverages, to be more susceptible to theft, the losses have been widespread across the board.
“The escalating shrinkage is undoubtedly a clear and present challenge for the retail sector. At ECR Retail Loss, we take pride in fostering an environment where leading experts can convene to exchange ideas and knowledge, thereby aiding the industry in selling more and minimizing losses,” emphasized John Fonteijn, the chair of ECR Retail Loss.
