Grocery stores have some of the narrowest profit margins in the retail industry, generally ranging from 1 to 3 percent. While this business model works well for grocers, which make their money on volume rather than individual products, retail shrink can be especially detrimental to a grocery store’s bottom line. With retail shrink hovering around 1.62 percent in 2019, that means that grocery stores could lose as much as half of their profit margins to shrink, much of which is preventable.
Since shoplifting is the biggest source of retail loss, many retailers have invested in loss prevention solutions to protect their merchandise from thieves. An effective loss prevention program is more than just a one-size-fits-all anti-theft system. To create a successful loss prevention strategy, retailers must consider the type of merchandise they want to protect, how thieves might steal or damage these items and how to secure these items without disrupting the shopping experience.
Today we’ll go over the 7 most stolen items from grocery stores and how grocers can use proven LP solutions to protect their inventory.