India Retail News

Cutting Costs Through Shrink Reduction

SSA and Co

For an industry where company margins typically hover between 1% and 2%, shrink remains a critical opportunity to enhance company performance and improve the bottom line. While most retailers have tried a variety of tactics to reduce the monthly toll on profitability, for many it remains a frustrating game of trial and error: some efforts reduce shrink at the cost of losing margin; other techniques compromise sales. After failing to tackle the problem, many managers conclude - wrongly - that high shrink is simply a cost of doing business.