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Shrink is on the UP

Shrink is on the UP, The British Retail Consortium (BRC) estimates that there were 8m “theft incidents” in British shops last year, costing £953m. The BRC says shop theft is a “long-term rising trend”, with incidents more than doubling since 2016-17.

And the Beauty category is no exception to this trend at eXPD8 we work with our clients overall strategy to negate the impact at fixture level.

  1. Theft – Theft is a significant contributor to inventory loss, particularly in the beauty category due to the small size and high value of many products. Both internal theft (by employees) and external theft (by customers) can result in stock shortages. To address this, security measures such as security tags on high-value or frequently stolen items can act as a deterrent. Regular presence of merchandisers on the shop floor can also discourage theft.
  2. Damaged Deliveries: Damage to products during transportation to stores is another factor that can lead to stock issues. Prompt reporting of such damage is crucial to address the problem. Merchandisers on-site can quickly identify and report damaged items, which helps in resolving the issue with distributors or suppliers.
  3. On-Fixture Damage: Products can get damaged while on display due to various reasons, including customer handling, dropping, or using products as testers. Ensuring that makeup testers are available for customers can help prevent them from opening and damaging sealed products. Proper placement and display strategies can also minimize damage.
  4. Accurate Book Stocks: Maintaining accurate inventory levels in the system is crucial for efficient stock management. Inaccurate stock levels can lead to delayed replenishment orders and prolonged stock shortages. Regular gap scans and accurate reporting of stock levels help in triggering timely reorders.
  5. Gap Scans and Replenishment: Conducting regular gap scans (checking for discrepancies between actual stock and recorded stock) and replenishing stock accordingly ensures that products are available for customers when they want to make purchases. This practice also helps in preventing large orders after infrequent stock takes.
  6. Collaboration with Retailers: Companies like eXPD8 can play a role in collaborating with retailers to address these issues. From security tagging to reporting damages and conducting gap scans, external partners can provide support to maintain accurate stock levels and reduce shrinkage.

Overall, a combination of security measures, vigilant on-site monitoring, accurate inventory management, and collaboration between retailers and external partners can significantly help in managing stock issues and minimizing shrinkage in the beauty category.

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Shrink is on the UP, The British Retail Consortium (BRC) estimates that there were 8m “theft incidents” in British shops last year, costing £953m.

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