Retail Shrinkage in India
ET reports that Industry circles estimate loss from shrinkage accounts for nearly 3-4% of an Indian chain’s turnover, nearly double their Western counterpart. This translates into an annual loss of about Rs 9,000 crore for the industry.This has resulted in Indian Retail players players turning keen on investing in shrinkage control mechanisms, such as installing RFIDs, sensors, IT solutions and training employees.
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Interestingly in most countries it is thought that customer theft was the majority factor responsible for shrinkage. But in North America , Canada and Australia employee theft is perceived to be larger than customer theft.
Also, shrinkage in Indian retail has fallen from 3.20% to 2.90% ( as % of sales) nonetheless it is the highest shrinkage (as a % of sales) in the world and is a considerable loss.
source: The Global Retail Theft Barometer