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RFID Technology Benchmarks Retail Shrink Performance

May 25, 2018 BySensormatic News Desk


Sensormatic Global State of Shrink Series:

As retailers everywhere continue to struggle to maintain profitability and stay competitive, they cannot afford to lose sight of one consistent enemy: shrink.

Globally, the rate of shrink is higher than suggested in previous studies at 1.82% of annual retail sales, according to the new Sensormatic Global Shrink Index[1], with rates slightly above the global average at 1.85% in the USA. The data reported in the study also highlights the struggle major retailers have had to maintain positive like-for-like store growth. Almost $100 billion USD was the price tag of annual retail sales losses due to shrinkage, globally, as reported by respondents from retail organizations across 14 countries and in 13 vertical markets.

Retailers in the USA, for example, are currently facing daunting challenges. While the aforementioned rate ranks the United States as the 9th country with the largest shrink rate according to the report, the losses in terms of sales tell another story. As the largest consumer economy in the world, the USA alone loses approximately $42.49 billion annually, making it the country with the highest losses based on shrinkage value worldwide.

In this market, shoplifting makes up the largest percentage of losses (35.55%) and the average value of all loss incidents trends slightly above the global average by source. For instance, Organized Retail Crime events have a value of $1401.69 in losses per event, which is about $131.72 more than the global average.

This data, compounded by other socioeconomic factors impacting the retail industry in the USA today, provides retailer with different factors effecting loss prevention. Now it is more important than ever for retailers to know where they stand in terms of the sources and impact of shrink, and what they can do to reshape their view on loss prevention, allocate more budget to their efforts and strengthen their loss prevention programs overall. Do you know how your shrink and loss prevention program measure up?

To get a copy of the entire Sensormatic Global Shrink Index report, please go here.

[1] 2017-2018



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Catherine Walsh

Senior Vice President and General Manager, Loss Prevention, Tyco Retail Solutions

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