AN EMPIRICAL STUDY OF PROBLEMS OF SHRINKAGE FACING BY RETAILERS IN KALYAN AND DOMBIVILI REGION

DR. SANDEEP RAJENDRA SAHU

Volume : IV, Issue : III, March - 2015

AN EMPIRICAL STUDY OF PROBLEMS OF SHRINKAGE FACING BY RETAILERS IN KALYAN AND DOMBIVILI REGION

Dr. Sandeep Rajendra Sahu

Abstract :

Shrinkage had cost retailers a whopping $128.51 billion globally in the year 2013 and India is no exception. Retail 

shrinkage simply means losses to retailers due to mostly theft from the stores. With increasing challenges in retail sector, 

the only way to survive is to be competitive without compromising on the quality of services. And cost minimization 

plays an important role to achieve this objective. So, retailers should try to identify the real causes of shrinkage and thereafter proper loss–prevention method should be employed for reducing losses incurred due to shrinkage. 

This research paper attempts to find out the retail shrinkage rate and causes (sources) of shrinkage of Kalyan and Dombivili retailers. It also 

studies their methods of minimizing losses incurred due to the shrinkage. For the purpose of the study, twenty–four retail stores are randomly 

selected as a sample. After the analysis of the study, researcher suggests that along with employing the modern technologies like EAS and CCTV, 

collaborating with loss prevention specialist and regular training to staff people would help the retailers in their attempt in controlling their store’s 

shrinkage rate. 