What: The National Retail Federation is discontinuing its annual shrink report in favor of a more focused study on retail theft and violence, amid industry-wide concerns about data accuracy and rising organized retail crime.

Why it is important: By focusing on theft and violence, the NRF acknowledges the growing threat of organized retail crime, signaling a potential realignment of industry-wide loss prevention strategies and policies.

The National Retail Federation (NRF) has announced a significant change in its approach to reporting retail losses. After more than three decades of conducting annual research on shrink, the organization will not release its traditional report this year. Instead, the NRF plans to issue a new report focusing specifically on retail theft and violence, which it identifies as key challenges for the industry.

This shift comes as the retail sector grapples with evolving loss patterns and the need for more accurate and actionable information. The decision reflects growing concerns about the reliability of past shrinkage data and the changing nature of retail crime. Many retailers have reported increases in organized retail crime and its impact on both inventory and staff safety.

In response to these challenges, the industry is adopting new technologies and strategies. For instance, there's an increasing use of RFID technology for improved inventory management and loss prevention. The NRF's change in reporting strategy signals a broader industry trend towards more targeted and effective approaches to combating retail crime, potentially influencing how retailers allocate resources and develop loss prevention strategies in the future.

IADS Notes: The retail industry is undergoing significant changes in how it addresses and reports on shrinkage and theft. The National Retail Federation (NRF) is shifting its focus from broad shrink studies to more specific reports on retail theft and violence, reflecting the evolving challenges faced by retailers. This change comes amid concerns about the accuracy and reliability of past shrinkage data, with some experts questioning the value of previous reports due to potential inaccuracies and biases. In response to these challenges, retailers are increasingly adopting new technologies, such as RFID, to combat shrinkage and improve inventory management. The industry is also grappling with a rise in organized retail crime and theft, which has led to store closures and increased security measures in some cases, highlighting the urgent need for effective solutions and accurate reporting in this area.

NRF won’t publish its annual shrink report this year