Sales and Shrink by Department

 

Perishable vs. Non-Perishable

Perishable vs. Non-Perishable Perishable Sales Perishable Shrink Non-Perishable Sales Non-Perishable Shrink

Survey respondents reported overall store shrink at 2.70% of retail sales, with a low average of 1.76% of retail sales and a high average of 3.10% of retail sales.

 

65% of all store shrink and 38% of total-store sales were attributed to perishable departments. The meat department contributed the highest amount of total store shrink at 18% of total store shrink or $93,414 in annual in profit loss. Produce was the second-highest shrink contributing department at 16% of total store shrink or $82,022 in profit loss. Deli department contributed the third highest amount of total store shrink (tied with Grocery department) at 14% of total store shrink or $74,048 of profit loss.

 

Non-perishable departments (grocery and center store) averaged 62% of the total store sales and contributed 35% of total store shrink. According to survey respondents, the average grocery department reported 1.10% shrink, or $71,010 in annual in profit loss. General Merchandise shrink posted the second-highest non-perishable shrink at 2.71% shrink, or $41,011 in profit loss.

 

 

Sales and Shrink by Department

A close look at individual departments reveals significant profit improvement opportunities for companies adopting noted best practices within a culture of store operations and loss prevention collaboration. The following table provides details for sales and shrink by department.


DEPARTMENT

SHRINK CONTRIBUTION

SHRINK
(DOLLARS)

DEPARTMENT SHRINK

PERCENTAGE OF SALES

AVERAGE ANNUAL SALES

Meat
18% $93,414 4.1% 12% $2,278,390
Produce
16% $82,022 4.8% 9% $1,708,792
Deli
14% $74,048 7.8% 5% $949,329
Bakery
6% $30,379 8.0% 2% $379,732
Seafood
5% $23,543 6.2% 2% $379,732
Dairy
4% $19,936 1.5% 7% $1,329,061
Floral
2% $9,683 5.1% 1% $189,866

PERISHABLES

4.62%

65%

$333,025

38%

$7,214,901

Grocery
14% $71,010 1.1% 34% $6,455,438
GM
8% $41,011 2.7% 8% $1,518,926
RX
5% $25,062 2.2% 6% $1,139,195
HBA
3% $14,240 2.5% 3% $569,597
Frozen
2% $7,595 0.8% 5% $949,329
Beer/Wine/Liquor
2% $9,493 1.0% 5% $949,329
Video
1% $3,892 4.1% 1% $94,933

NON-PERISHABLES

1.48%

35%

$172,303

62%

$11,676,747

TOTAL

100%

$512,922

2.70%

100%

$18,986,581

 

For more information on best practices and shrink reduction across all departments, call 602.448.8502 or email info@wheresmyshrink.com.

Where's My Shrink

E-mail: info@wheresmyshrink.com

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