Reframing Retail Shrinkage Through Supply Chain, Tech, and Trust
Shrink is surging across retail, but the real story goes beyond shoplifting headlines. According to Brand Elverston, former Walmart asset protection leader, shrink is a systems-level failure—beginning at the purchase order and flowing through every supply chain touchpoint. To cut losses and preserve the customer experience, retailers must shift from reactive security to proactive, data-driven precision.
Redefining Shrink as ‘Total Retail Loss’
Traditional shrink strategies focus narrowly on theft. But Elverston stresses that administrative errors, misreceipts, and inventory mismatches are just as costly. “Total Retail Loss” is the broader framework—one that includes internal missteps, process gaps, and blind spots in fast-moving omnichannel networks. These overlooked leaks can exceed theft-related losses.
Tech as Truth: RFID and Real-Time Visibility
Item-level RFID is transforming loss prevention from guesswork to ground truth. When SKUs are tracked across ordering, receiving, and shelf placement, retailers can pinpoint discrepancies before they hit the P&L. Paired with computer vision and AI at self-checkout, these systems help detect abnormal behavior, streamline associate interventions, and reduce the need for frustrating product lockups.
Protecting Experience Without Sacrificing Sales
Retailers must balance loss prevention with a seamless experience. That means implementing identity checks for curbside, serialized tracking on high-theft items, and anomaly alerts that inform—not intimidate. Omnichannel has opened more “doors” for product movement; each one must be monitored without degrading trust or convenience.
A Smarter Path for High-Risk Stores
Rather than abandon high-shrink locations, retailers can re-engineer them. With scalable tech and better processes, they can preserve access to essential retail—especially in underserved communities.
