Store Audits: Minimizing Shrink And Maximizing Value

November 2012 Integrated Solutions For Retailers

By Amy Zalatan, research associate, Aberdeen Group

Loss prevention technology enables successful store audits.

Store audits are a necessary part of a comprehensive loss prevention program for any retailer. Sixty-five percent of retailers currently perform regular audits of merchandise for security and safety. The troubling number is that 24% of retailers have no plans to implement this capability. Audits are important because they save money. Retailers that use audits have an 84% smaller shrink than retailers that do not use audits (0.89% versus 1.64%). Merchandise shrink is leaving money on the table, especially when it can be mitigated by proper use of store auditing. Retailers that perform store audits have lower operating costs as a percent of total costs. Retailers performing audits are spending 16% less on operating costs than those not performing audits (4.97% versus 5.78%). Despite the cost savings of performing store audits 39% of retailers (who perform such audits) are still feeling the pressure of budget reductions to their loss prevention programs.