Tag Archives: supermarket challenges

Can Great Customer Service Reduce Shrink?

We all know about shrink… the loss of product inventory.

But a recent article published on datecheckpro.com offered some interesting perspective for supermarkets on how they might reduce shrink.

As you most likely are aware, shrink falls into two categories—operation management issues and theft. When shrink occurs in a supermarket, it differs from the retailers based on grocery items expiring. Supermarket shrinkage is usually higher than all retailers.

The article went on to cite a 2012 shrink study by The Retail Control Group, which indicated:

  • Operational factors contributed to around 2/3 of all retail shrink
  • Shoplifting accounted for 36 percent of all theft-related shrinkage
  • Cashiers account for 31 percent of theft and general employees another 25 percent
  • Vendor theft accounts for the remaining 8 percent of theft-related shrink

Solutions?

The article offered a few thoughts on reducing shrink.

  • Correcting ordering and receiving processes while maintaining an integrity driven inventory count, can help minimize losses from inventory problems
  • Minimizing damaged products by handling products carefully will add to the reduction of losses
  • The best ways to minimize theft is though great customer service, and by conducting thorough background checks when hiring employees
  • Train and compensate appropriately while maintaining positive working conditions (engagement!) to reduce internal theft by employees

For additional perspective on shrink and other common challenges faced by supermarkets, you might like to review this free whitepaper, “Supermarket Challenges & Opportunities” on our website.