SHRINKAGE

Goods leaving the retail store without a matching payment

Levi’s jeans and Gillette razor’s? • Globally the most popular targets of retail theft • In India retailers are worried that other products will find favor .THE SCENARIO • What is the link between baby formula.

. U. U.. estimates shrinkage cost the world’s retailers $98.6 billion • Indian Organized Retail was $16 billion in 2007 • Wal-Mart alone lost $3 billion in 2007 • India’s shrinkage rate is the highest in 32 countries surveyed by CRR. K.ALARMING DATA • Centre for Retail Research. K.

the problem appears small • Indian retail’s shrinkage woes are actually more acute.9 % of sales.INDIAN SCENARIO • Organized retail in India being small. and worse in the unorganized sector. our shrinkage rate is highest in 32 countries surveyed . • At 2.

INDIAN SCENARIO • • • • • Shrinkage cannot be eradicated completely It can be monitored and lowered Ideas from manufacturing companies This industry hazard Retail is new business: learning to adapt quickly .

.SOURCES FOUR CAUSES: • Employee pilfering • Shoplifting • Accounting errors • Vendor fraud.

.INDIA & THE GLOBE • Internal theft is the biggest cause worldwide. lowvalue items. and in India • In Western markets 40% of losses are from shoplifting consumers. the figure for India is 25% • Most common global employee-theft method is to allow a friend to slip away with highvalue items after charging him for other.

FIGHTING SHRINKAGE CREATING LOSS FIGHTING CULTURE • Protecting whistle-blowers • Rewarding staff who help reduce fraud • Investing in employees • Creating experienced and loyal work force • 40-60% attrition rate big reason .

FIGHTING SHRINKAGE • HyperCITY. Spinach and Subhiksha have financial incentives • Subhiksha had set monthly targets • High-value items (electric razors) audited twice a month • Mobile phones / LCD monitors inventoried everyday at Big Bazaar .

FIGHTING SHRINKAGE SHOPPERS STOP HAS THREE CATEGORIES A. . checked four times a year (high-value and often-stolen) B. Bulk and low-value items like imitation jewelry checked once a year. Lesser value items C.

FIGHTING SHRINKAGE • Prominent display of CCTV cameras • Display screen screening customer movement • Signage indicating surveillance • Shelves below 4 feet height • Most pilfered items next to cash counter • Dummy models of high-value products • Plain clothes security men .

Sign up to vote on this title
UsefulNot useful