Mitigate Shrinkage with Automated Cash Handling

In today’s retail marketplace, brick-and-mortar businesses face many challenges when it comes to staying in the black. With the rise of online shopping and other competitive factors, retailers must take all necessary actions to maximize revenue, while at the same time reduce their exposure to loss from theft, error, and other factors. While retail shrinkage encompasses a wide range of variables, cash is certainly one factor that must be addressed to combat rising shrinkage rates.  Retailers that deal with large amounts of cash will face the risks and associated costs of doing so, many of which involve cash loss or theft. Unless addressed appropriately, these factors can negatively contribute to the store’s overall shrinkage rate.

What Is Shrinkage and what are the Statistics?

“Shrinkage” is often used to describe businesses losing inventory or cash due to factors such as theft, error, fraud, and accidental damage. Not only does shrinkage impact profits for a retailer, it can also cause businesses to spend more on security.  Unfortunately, such added costs are often passed on to consumers.

In 2016, shrinkage cost United States retailers $48.9 billion, or 1.44 percent of retail sales. Even yet, this number continues to rise. 56 percent of retailers reported that shrinkage is getting worse.

What Causes Shrinkage?

Nearly 43 percent of losses from shrinkage can be attributed to employee theft.  At over 37 percent, shoplifting takes the second-place spot. Coming in at third are administrative losses at nearly 11 percent of total shrinkage, while fraud from vendors and suppliers accounts for almost nine percent of reported shrinkage.

It’s clear from these statistics that an increased loss prevention budget may not be the optimal solution to address risking shrinkage rates. Furthermore, increased security may not decrease administrative and fraud shrinkage. For retailers that handle cash, an automated solution might be worth considering.

Read more at tidel.com

Follow us on social media for the latest updates in B2B!

Image

Latest

EPCOM and Icom
Icom and EPCOM Showcase Real-World Impact of Trusted Communications at IWCE 2025
April 4, 2025

At the International Wireless Communications Expo (IWCE) 2025—an event focused on mission-critical communications for industries like public safety and utilities—EPCOM and Icom stood out by demonstrating how trusted technology and long-term partnerships can deliver real impact. Representing EPCOM, Director of Customer Success Abril Rodriguez highlighted the company’s role as a long-time partner and recent U.S….

Read More
Icom
New Telex-Icom Compatibility Enables Channel Change, ANI, and Emergency Decode from Dispatch
April 4, 2025

At this year’s International Wireless Communications Expo (IWCE), Telex and Icom introduced an important step forward in critical communications: the integration of Telex dispatch consoles with Icom’s P25 mobile radios. This new compatibility allows dispatchers to access key radio functions—such as channel change, ANI (Automatic Number Identification), and emergency alert decoding—directly from the Telex console. The…

Read More
The Future of AI in Education Starts with Empowering Teachers
April 4, 2025

Teachers are overburdened, overwhelmed, and often under-supported. Take the school year of 2022-23 for example — During the year, the average K–12 educator was found to juggle a whopping 49 digital tools. This digital overload, compounded by post-COVID challenges, has not only tethered teachers to their desks but eroded the essential human connection in…

Read More
port
FuturePorts Reimagines Port Leadership and Innovation in Logistics
April 3, 2025

As global trade logistics falls under more and more pressure to be faster, greener, and more transparent, port authorities and stakeholders are facing a new kind of challenge: how to modernize infrastructure while balancing environmental and community demands. Ports such as Los Angeles and Long Beach are at the epicenter of innovation and scrutiny,…

Read More