Retail shrinkage refers to inventory lost to theft or error. The document discusses causes of retail shrinkage including shoplifting and employee theft. It compares techniques used in India like CCTV and double-checking purchases to global methods such as concealed doors, RFID tags, and retail analytics. Case studies found that while large stores heavily invest in security, small shops have high shrinkage due to limited techniques and budgets. Overall the document analyzes factors influencing shrinkage and prevention methods.

1. •
S.SHARON BEULAH and R.SIVA SANKARI
1701712083027 and 1701712083029

2. CONTENTS:
1. INTRODUCTION
2. REASONS
3. TECHNIQUES TO PREVENT RETAILING SHRINKAGE
4. TECHNIQUES USED IN INDIA AND OTHER COUNTRIES
5. REPORT ON OUR ANALYSIS
6. CONCLUSION

3. INTRODUCTION:
Retail industry is one of the fast growing industries
globally. The growth rate of this sector is
exceptionally high. In spite of this growth more
than two decades the retail industry failed to deal
with the problem of shrinkage. The main focus of
our study is to identify the causes for retail
shrinkage and various techniques adopted by the
Indian and global retailers.

4. MEANING:
•In retail world RETAIL THEFT is known as RETAIL
SHRINKAGE.
•Here, a person takes possessions of the goods or uses
the benefits of goods without paying the retail value.
•It is the portion of the inventory that gets lost or
stolen.
•The Global Retail Theft Barometer and National
Retail Security Survey conduct survey annually on
Retail shrinkage.

5. REASONS:
•Shoplifting
•Employee Theft
•Paperwork Error
•Vendor fraud
•Other causes

6. RETAIL SHRINKAGE PREVENTION
TECHNIQUES:
• Double checking of products purchased.
• Customer baggage check by security staff.
• Issue of token for baggage.
• CCTV
• Mirrors
• Pedestal system

7. • Concealed door system
• Tags
• Overhead RFID reader
• Retail analytics
• POS
• Under floor systems

8. COMPARISON:
INDIAN TECHNIQUES
• Double checking
• Customer baggage check by
security staff
• Issue of token for baggage
• CCTV
• Tags
• Mirrors
• POS
• Pedestal system
GLOBAL TECHNIQUES
• CCTV
• Mirrors
• Tags
• POS
• Concealed doors
• Retail analytics
• Pedestal system
• Under floor system
• Security metal detector
,security x ray machine
• Overhead RFID reader

9. REPORT OF OUR ANALYSIS

10. KIRANA STORES
•They are the small, usually family owned shop selling groceries and
other sundries.
•We visited 5 kirana stores (KANAGA STORES, JEEVA STORES,
JAYASAKTHI STORES, ANANDA STORES, JJ STORES) we were
permitted to ask them questions regarding our topic retailing shrinkage.
•As a small business retailer, it’s not always easy to just throw money for
them to invest at problems like shoplifting and take advantage of all the
technology.
•Whether its cameras, door scanners, or facial recognition software etc.,
as the cost just doesn’t fit with their small retailing business security
budget.
•There is no possibility for using retailing shrinkage techniques, because
it is a small retail outlet and the owner is cautious in his retailing activity.
•But, they also come across bold shoplifters who grab an item and runs
away.

11. SUPER MARKETS
• A supermarket is a self-service shop offering a variety of food and
household products of food and household products, organized into
aisles. It is larger and has a wider selection than earlier grocery stores
but in smaller and more limited in the range of merchandise than a hyper
market or departmental store.
•We visited 3 super markets ( A1 SUPER MARKET , RAJAN
SUPERMARKETT AND ROGER SUPER MARKET)
•The employees were not permitted to answer the questions and hence
we just observed
the techniques that are adopted there to reduce retail shrinkage.
•All the supermarkets have adopted CCTV to have close watch on
customers.
•They even DOUBLE CHECK the items which they have purchased.
•There are possibilities for the shoplifters to steal the items.

12. DEPARTMENTAL STORES
• A department store is a retail establishment offering a wide range of
consumer goods in different product categories known as departments.
•It includes clothing, furniture, home appliances, toys, cosmetics,
house ware, gardening , sporting goods, hardware, food, books,
jewellery, baby products etc.
•We visited 2 departmental stores ( SARAVANA STORES, BIG BAZAR)
•The employees were not permitted to answer the questions and hence we
just observed the techniques that are adopted there to reduce retail
shrinkage.
•The techniques used there were CCTV to have close watch on customers,
POS, CHECKING OF STAFF, SECURITY STAFF at the entrance of the
gate, CUSTOMER BAGGAGE check by the staffs, ISSUE OF TOKEN
FOR THE BAGGAGE
•Majority of customer prefer purchasing in these departmental stores and
retailing theft cannot be avoided though they adopt techniques to prevent
theft

13. RELIANCE TRENDS
•TRENDS are a leading Indian lifestyle retail having 419 stores across
India.
•We visited trends near TAMBARAM as well as in PHONEIX MALL.
•Employees are not allowed to reveal the security systems that the store
has adopted.
•TRENDS like the local retailers ISSUE TOKEN FOR THE BAGGAGE
•It also uses PEDESTAL SYSTEM which senses the products that are
stolen from the store by sensor tags
•It also uses TAGS like HARD TAG, SECURITY LABELS AND
DETACHER to prevent theft.
This top Indian retailer has invested more on security system to prevent
theft in their store.

14. HENNES & MAURITZ (H&M)
•H&M is the second largest global retailer which has 4500 stores operating in 62 countrie
We visited H&M store in PHONEIX MALL.
•As company security system is highly confidential employees are not allowed to reveal
the techniques.
•Firstly they have CONCEALED DOOR SYSTEM which is one of the best way to
prevent shoplifters and mostly many global retailers use this system.
• Through SECURITY METAL DETECTOR, SECURITY XRAY MACHINE
consumers are checked before entering the store.
•As other retailers it also has the CCTV facility to have control over the whole store
•They have RFID SECURITY LABELS AND HARD TAGS that improve theft
protection
•They also have SMART DETACHER AND DEACTIVATOR for check out process
•They have OVERHEAD RFID READER to read all items at the point of sale
•It also has uses RFID PEDESTAL SYSTEM at the store exist ,when an unsold item
leaves the store which alert the employees
•In the case of H&M we come to know that the use various techniques and invest more
on security system. Hence retail shrinkage will be highly low.

15. CONCLUSION:
•There are various technologies which have now in trend in
the retail industry.
•Global retailers use various technologies to prevent theft and
every year and hence the rate of retail shrinkage has been
reduce.
•Indian retailers because of the high investment in security
system tries not to adopt the technologies.
•RETAILTHEFT cant be avoided but it can be reduced by
installing these technology.