The world's largest retail trade association, National Retail Federation (NRF) recently found itself in the spotlight for a significant correction regarding inventory loss figures.
Initially, the NRF reported that nearly half of the $94.5 billion in industry shrink—a term encompassing inventory loss due to various factors—was attributed to organized retail crime (ORC). This claim was widely circulated and contributed to a heightened sense of urgency around retail theft.
recognized that this assertion was based on flawed data. The NRF retracted its earlier statement to maintain transparency and accuracy, clarifying that the analysis leading to the claim was incorrect.
The revised report significantly downplays the role of ORC in overall inventory shrinkage, acknowledging that the actual impact of theft, fraud, and damage was over 3%.
Subscribe to RetailBoss for free Sign up here to g et the latest news updates straight into your inbox This correction comes against a broader conversation about retail shrink and its impact on the industry.
According to the 2023 National Retail Security Survey, retail theft losses swelled to $112.1 billion in 2022, a 19% increase from the previous year. Theft, internal and external, accounts for nearly two-thirds of retailers' shrink, with the average shrink percentage representing a substantial financial hit to the industry…
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