Shrinkage in the retail industry can involve a number of types of losses, and, for years, measuring shrinkage in retail has been an ambiguous process. Total retail loss (TRL) is a more inclusive concept of categorizing and understanding the many forms of retail loss a business could face. Instead of focusing on just shrinkage or theft, TRL is designed to take into account all types of loss across the full spectrum of an organization.
Total Retail Loss (TRL) includes 42 unique categories of loss, including things like store loss, internal theft, supplier fraud, and paperwork errors. TRL is based on concepts developed after years of research and originally published in 2016 by the ECR Retail Loss Group, as well as the Retail Industry Leaders Association.
Value of Implementing Total Retail Loss
Implementing a TRL approach to controlling loss may offer a number of benefits to a business, including:
- Having a better framework that clearly identifies all types of loss
- Gaining an opportunity to better enhance the profitability of the business
- Making sure the available loss-prevention resources are better targeted toward the biggest problems
- Keeping loss prevention tactics relevant and effective according to the types of loss
- Managing a complex retail environment more effectively
- Creating a better level of accountability and transparency with all types of loss
Simple Ways to Start Implementing Total Retail Loss
An advantage of total retail loss is the fact that its concepts are adaptable. Retailers can tailor their approach to TRL by focusing on things like resource availability, current capabilities, and priorities. If store loss due to theft or shoplifting is one of the biggest loss drivers in a business, retailers can adopt strategies that comprehensively address these problems using the TRL framework. For example, an electronics store that has problems with theft of a specific item would examine:
- Where do those losses occur the most?
- Which products are most at risk?
- At what times of day are those products are most likely to be targeted?
- What changes can be made to address the problem?
Using in-store security fixtures from RTF Global is one of the simplest ways to address problems with store loss due to theft. These simple-to-use security devices keep products secure even when loss-prevention staff, surveillance, or other efforts may be limited in scope. Many of the products are available in different colours, adaptable for specific wall displays, feature built-in alarms, and seamlessly blend into retail displays. Recoilers can be used to protect merchandise like shoes, clothing, mobile phones, power tools, and more.
Looking to Add a New Layer of Retail Loss Prevention?
Whether you are adopting the full total retail loss strategy or using certain components, security fixtures can be an important investment. These fixtures don’t just deter theft, they also affect the total retail experience for the customer. Our dedicated team of professionals can be an extension of your loss prevention team with our customizable retail display security devices. Discover our full collection of products or contact us today to get started.