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Combating Retail Shrinkage

March 25, 2024 Lili Walker

Retail shrinkage is a trending issue that retailers are often faced with due to theft or spoilage. Inventory can be affected drastically by retail shrinkage. For a lot of retailers, this is a silent profit killer, and if you don’t understand all the details and what strategies to have in mind, you may be looking at sales declining. S-Cube Fixtures is here to help talk about best practices and common problems so that you can keep any retail shrink at bay. Read on for more! 

Understanding the Culprits Behind Retail Shrink 

With the economy being the way it is, every penny counts, and knowing what causes retail to shrink is the first step in preventing it. Theft, of course, is a key player in retail shrinkage but isn’t the only reason it can happen. Things like waste or spoilage are also factors as to why profits shrink. This can be because of overstocking or misaligned demands when talking with your vendors. There are also some instances where markdowns can be seen as a retail shrink. This happens when the inventory doesn’t sell at the originally marked price.  

What to do to Minimize Shrink 

Considering how much retail shrink can occur, it’s important to know what you can do as a retailer. Here’s some tips and tricks on how to fight back: 

Inventory Precision 

It’s all in the details. One of the first things you’ll want to do is take accurate notes on inventory. You can do this by RFID tagging, real-time tracking systems, and even visual reporting. This will reduce the likelihood of overstocking and ensure less waste.  

Getting Customized Fixtures 

Believe it or not, having customized or personalized fixtures in your space can add an additional layer of protection against shrinkage. Having the right fixtures can help keep track of inventory and reduce damage to goods. This way, everything is accounted for and stays in pristine condition, all due to the right displays in your store. 

Educate Employees on Security Measures 

As we’ve mentioned, theft is a big part of retail shrinkage. Having your employees be aware of it sooner rather than later will be super helpful in prevention efforts. Training your employees the right way can help prevent theft from happening, but it can also be a great way to keep track of inventory, whether it be stolen, damaged, or spoiled.  

Related Article: Revolutionizing Store Layouts 


Overall, retail shrinkage is a problem that is on the rise. Retailers need to be aware of the complex issue it is and understand what they can do to prevent it from happening. Implementing specific strategies, taking into account inventory, security training and getting customized fixtures is a sure way to decrease these potential losses. For customized fixtures, make sure to check out S-Cube Fixtures to get something exactly the way you want it to thrive in the retail environment. You won’t be disappointed. 

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