Retail Shrinkage in India.

Prepared by :
Sudhir Mehrotra
Retail Shrinkage
Shrinkage is a part of the business
no one likes to talk about. However,
shrinkage plays a huge part in every
retailer's business.
Retail shrinkage is the portion of
your inventory that gets lost or
stolen. Your shrinkage rate is
expressed as a percentage based on
the value of lost inventory divided by
sales during the same period.
Keeping your shrinkage rate low is
critical to success in business.
Indian retail has highest rate of shrinkage
As per a study by “Global Retail Theft Barometer”, retail
shrinkage in India continues to rank the world’s highest at
2.7%. Indian retail lost Rs 9,295.9 crore to shoplifting and
theft during the one year period ending June, 2012.
The annual survey was conducted by the Centre for Retail
Research in Nottingham, UK. In India, 47.3% of retail
shrinkage was due to shoplifting and 26.4% due to employee
theft. The highest rate of shrinkage was seen in apparels.
As per the study, the lowest rate of shrinkage was witnessed
in Taiwan, at 0.87% of retail sales, whereas the average rate
in the Asia-Pacific region was 1.16%.
The key drivers
• Unemployment claims during a recession is
associated with an increase in shoplifting.
• Shoplifting tends to rise amid high inflation
as goods are priced out of consumers’
• Theft by the employee working in the retail
• Persons between the ages of 15 and 24
represented the highest share in Shoplifting
to fulfill there goal.
Spot the Shoplifter
• Wears bulky, heavy clothing during warm weather .
• Takes several items into dressing room and only leaves with one item.
• Seems nervous and possibly picks up random items with no interest.
• Frequently enters store and never makes a purchase.
• Enters dressing room with merchandise and exits with none.
• Spends more time watching the sales clerk than actually shopping.
• Large group entering the store at one time. A member of the group
causes a disturbance to distract sales staff.
Retail Shrinkage Prevention
Usage of cctv to have close watch
on customers.
Checking of staff.
Security staff at the entrance of the
Customer baggage check by
security staff
Issue of token for the baggage.
 Installation
of EAS system
EAS system technology
Electronic article surveillance (EAS) is
technological method for the prevention
or pilferage of books from libraries. Special tags
are fixed to merchandise or books. These tags
are removed or deactivated by the clerks when
the item is properly bought or checked out. At
the exits of the store, a detection system sounds
an alarm or otherwise alerts the staff when it
senses active tags. For high-value goods that
are to be manipulated by the patrons, wired
alarm clips may be used instead of tags.
Types of EAS system
•Acousto-magnetic systems.
•Radio-frequency systems.
•Video surveillance systems
•Magnetic systems
Radio-frequency systems.
Radio frequency system includes:
The characteristics of the system
 Plug-n-play installation
 Sturdy tubular pedestal design
 Built-in audio and visual alarms
 Tags-to-close notification
 Compatible with all 8.2Mhz using
multiple pedestals
 Designed for easy installation
and operation
Hard tags(EAS)
Hard tags are made with best-inclass design practices for exceptional
detection performance, durability,
ease-of-use, appearance, and defeat
resistance. Hard tags are available in
a variety of styles for use in
protecting apparel of all types from
delicate lingerie to coats and hats, as
well as hard goods such as sports
equipment, hardware, electronics,
and others.
Retail security offers various ranges of
detachers applied for the reusable tags.
Easily installed in cash counter or other
necessary places, these are easy to use,
very durable and reliable.
Characteristics .
Sturdy and durable
Easy to use and reliable
Mounting options
Detacher Locker options help prevent
unauthorized unlocks.

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