Do you know shrinkage in the retail industry cost U.S. retails over $100 billion in a year?  Collusion between an employee and customer (usually a friend or family member) became the biggest cause of loss.  Below are 4 main reasons of shrinkage in the retail industry:

  • Employee Theft 
      Employee theft includes discount and refund abuse, and sometimes even credit card abuse.  Employee theft is very difficult to distinguish from process error, and also not easy to be discovered on store report.
  • Shoplifting
       Customer theft is one of the most common crime in the retail industry.  There's no typical shoplifter.  People who steal from stores can be any age, race, gender and personal background.
  • Administrative Error
       Pricing error or paperwork error due to markups or markdowns can cost retailers quite a bit.
  • Vendor Fraud
       According to the Association of Certified Fraud Examiners, U.S. organizations lose estimated 5% of their revenues on vendor fraud.