Tackling Shifting Retail Shrink

44% of retail respondents report that aggregate shrink has risen, according to In RSR Research's latest report "Loss Prevention 2010: Retailers Battling Shrink in Tough Times," developed in partnership with the Retail Industry Leadership Association (RILA).

RSR Research asked retailers what they perceive to be the drivers of this rise. Interestingly, none reported an increase in robberies. As we can see in the figure below, they believe this shift is shopper- or traffic-related.

Continued and heightened emphasis on Loss Prevention (LP) has done little to mitigate the effect of difficult economic times. Yet our retail respondents continue to see opportunities for improvements. In particular, LP is one area where retailers work together. There is little competitive advantage for any one retailer in reducing theft, but tremendous opportunity for the industry at large to share lessons learned and success stories from new initiatives.

"Loss Prevention 2010: Retailers Battling Shrink in Tough Times" contains analysis of the business drivers, opportunities, and organizational constraints surrounding Loss Prevention initiatives, as well as recommendations for creating successful LP capabilities. The report is part of RSR Research's ongoing efforts to provide market intelligence on retail technology trends, and can be downloaded here (pdf).