An Assessment to Determine the Impact of Retail Shrinkage on the Sustainability and the Profitability of the XYC Franchise Retailer Stores in the Western Cape Region of South Africa

Abstract

Against the backdrop of bad economic news and retail crime trends, it might be natural to be pessimistic about retailer’s abilities to strengthen their operations against shrinkage. There is nothing inevitable about higher shrinkage in any retail establishment. Threats can be identified, and strategies to deter and detect put in place. Through a combination of better strategic planning, vigilance in maintaining reasonable shrinkage control technology investment, and an understanding of why and how shrink takes place, retailers can continue to reduce shrink as a percentage of revenue, and protect their business’s profitability in these tough times. Small businesses cannot operate efficiently if employees are stealing goods and management is not properly monitoring and controlling shrinkage, Key concepts: shrinkage; store profitability; loss prevention