Reducing Inventory Shrinkage Could Double Grocery Store Profits

These statistics, taken from the 2003/2004 Supermarket Shrink Survey, show how the financial benefits of reduced inventory shrinkage will go directly into increased profits.

• The average supermarket in the survey reported annual sales of $19,502,004.
• Average spermarket net profit was 1.1%, or in our example $214,522.
• However, the average store lost $452,446 to known inventory shrink (2.32% of sales).
• 72% of the stores surveyed reported some form of "positive" price manipulation which can hide the true amount of store shrinkage by as much as 27%. True in-store shrinkage is probably nearer to $619,789 per store.

An effective loss prevention program helps owners reduce shrinkage below the national average. A 35% reduction in shrinkage would lead to an additional $216,926 in store profit--a doubling of profits. The AccuTrak Targeted Inventory and Loss Prevention Service is designed for grocery stores to use in their broader loss prevention program.

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