Retail Loss is an Enterprise-Wide Problem

Though goods being walked out the store door by thieves is the largest individual source of loss (25%) for retailers, the remaining 75% originates in other areas of the business, including the supply chain, returns/reverse logistics, e-commerce fulfillment and administration.

That, in turn, challenge retailers to look beyond the traditional front-door view of so-called “shrink” and understand loss as a connected, enterprise-wide issue. The above findings are all contained in a new joint study by IHL Group and Sensormatic Solutions titled “Beyond Shrink: The 2026 Global Total Retail Loss Study.”

“Investments in digital data collection and analytics systems have fundamentally changed retailers’ understanding of loss within their stores and supply chains,” said IHL Group Founder and President Greg Buzek. “The impact of external theft and shoplifting, including organized retail crime (ORC), is real, and it is rising globally—but it’s not where most loss dollars go. The report identifies and quantifies this gap with new clarity, laying bare how outdated benchmarks and measures turn into tunnel vision, gaps in deterrents and lost opportunities.”

Adds Tony D’Onofrio, President of Sensormatic Solutions: “For years, the industry has understandably focused on the most visible forms of retail loss, but what’s readily visible doesn’t always provide a full picture. This research shows that loss is moving across the enterprise into supply chains, returns, digital commerce and operational processes. The opportunity now is to use data, technology and a broader view of the business to understand where losses really occur, respond accordingly and make retail better.”

Click here for more of the study’s findings and their implications for retailers.