Each year, many organizations publish loss prevention statistics. We’ve highlighted data from the National Retail Federation (NRF) and the National Association of Convenience Stores (NACS).
Who is the NRF? The National Retail Federation (NRF) define themselves as the world’s largest retail trade association.
Who is NACS? The National Association of Convenience Stores (NACS) is a leading global trade organization for convenience and fuel retailers.
If you are a convenience store operator, manager, or just curious, you can find both average shrink and spoilage rates by company size below.
Whether it’s merchandise, food, fuel, lottery or other inventory, having to write off inventory can be disheartening and frustrating, especially if you can’t figure the root cause. Although a grab-and-run theft leaves no mystery as to the reason, internal theft can go unnoticed for months between your inventory counts.
Any number or combination of those factors can cause shrink, so let’s explore each cause in depth.
There are many ways for retail employees to steal inventory from a convenience store. They may do this during their shift or while the business is closed. Convenience store employees might:
External threats can include employees working externally with gangs or the gangs may work on their own to steal goods. Some of the top methods used by shoplifters and organized crime are:
Popular items stolen by gangs? In the NRF 2021 report*, these are the top 12 items stolen:
Items such as fresh produce, milk and other short shelf-life products need to be managed and reduced for sale to ensure they scan out before the expiration date. Although many people associate inventory cycle counts with high-risk items such as cigarettes, cycle counts are also useful for risk related to spoilage.
Can you really lose track of inventory at a convenience store? If items aren’t received correctly or moved from one location to another, it can be easy to lose track of stock, causing it to be written off.
Your store’s scan rate can help ensure that your inventory is sold and accounted for correctly. Not scanning items correctly creates issues when reconciling your physical to book inventory. See the short video below for additional information and how poor scanning leads to overstocks and understocks.
Whether intentional or not, shorted deliveries from your supplier or manufacturer cause your books to be out of balance with the store’s physical inventory unless you reconcile (count) the received items against the delivery (order) receipt and then file a discrepancy with the supplier or manufacturer.