Often, poor sales or margin performance leads to a downward spiral of cost reduction, IT project suspension and budgetary adjustments that lead to further losses.

Margin shortfalls directly attributed to shrink is the #2 business challenge identified by retailers in RSR's recent research report.

Margin shortfalls directly attributed to shrink is the #2 business challenge identified by retailers in RSR's recent research report, Winning Trends in Loss Prevention. But while it may be a high priority for driving LP investments overall, the challenge hits poorer performing retailers – “laggards” – much harder than their better performing peers:

Poor performers' lagging business results can lead to paralysis in doing something about their shrink problem. Often, poor sales or margin performance leads to a downward spiral of cost reduction, IT project suspension and budgetary adjustments that lead to further losses. In essence, losing becomes a self-sustaining problem.