The Cost of Shrinkage and Retail Theft for Lowe’s, Target, and Macy’s

The Cost of Shrinkage and Retail Theft for Lowe’s, Target, and Macy’s


Why the revenue ⁣impact of retail shrink may be overblown

A range of retailers are once⁣ again attributing their lackluster profits to ⁢shrinkage.

However, some of these companies are ​now‌ providing more​ detailed information on the extent to which shrinkage, including external or employee theft,⁤ damage, or vendor fraud, is affecting their​ bottom​ lines.

Meanwhile, certain retailers​ have scaled ⁣back ⁣their claims‌ that organized theft‍ is a major cause of losses, as skepticism ​grows regarding the impact of ‍crime on their struggles.

During the second-quarter earnings reports in August and ⁢September, nearly two dozen retailers ​acknowledged that shrinkage continues ​to impact their profits. However, the details and explanations provided by each company ‌varied significantly.

Many of them stated that shrinkage is at‍ an all-time⁢ high and that the industry⁢ is struggling to control it. Nevertheless, it is challenging to compare these losses to previous years because⁢ most companies have never disclosed this information before.

2023-09-08 14:26:24
Source from www.cnbc.com

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