The National Retail Federation, commonly known as NRF, is the largest retail trade association in the world. Its mission is to help and support the growth of retail through education and promotion.
According to the NRF, retail is the country's largest private sector employer, contributing $3.9 trillion to annual GDP.
Don't miss the move: subscribe to TheStreet's free daily newsletter
This sector also provides one in four jobs in the United States and employs about 52 million Americans.
Since the Loss Prevention Research Council was established in 2000, the NRF has published an inventory shrink study that provides statistics on areas of concern, including risks, threats and vulnerabilities that retailers should focus on to prevent further losses. .
To make this study as accurate as possible, the NRF collects information from 177 retail brands covering 28 different retail sectors, representing more than 97,000 retail establishments in the US.
For nearly three decades, the council has conducted more than 300 loss prevention research projects to help retailers.
However, a sudden and unexpected announcement by the NRF may forever change the way retailers strategize against retail losses.
Retail inventory losses are greater than ever and remain a concern for the industry.
Retail inventory losses continue to increase annually and have skyrocketed in recent years, negatively impacting the retail industry.
The amount of retail inventory losses during a given period is calculated using a measure called shrink, which is classified into various retail media.
Related: Retail sales grow, but one problem poses a major economic threat
According to the most recent NRF report National Retail Safety Survey for 2023The average shrinkage rate in fiscal 2022 increased to 1.6% compared to 1.4% in 2021.
The total contraction for 2022 amounted to $112.1 billion in losses that year alone, which is a 19.4% increase from the $93.9 billion reported in 2021.
Internal and external theft accounted for the majority of losses, around 65%, greatly impacting retailers' margins and profitability.
However, violence and threats of violence during theft have surpassed all other factors contributing to inventory loss as an area of concern, with 88% of retailers reporting that theft encounters are more violent than theft. previous year.
Retailers that specifically track the number of violent shoplifting incidents reported an average increase of 35%.
Due to the increase in violent robberies, some retailers have invested in more security-related measures, such as technology and partnerships with law enforcement.
Other retailers have opted for different alternatives: 45% reduced opening hours in some locations, 30% reduced or staggered product availability, and 28% ultimately chose to close stores due to the alarming increase in violent robberies.
NRF makes major announcement that surprises retailers
On Monday, the NRF announced it would not release its annual loss report this year, as it first reported Retail Diving.
As noted in an NRF comment to TheStreet, the federation said it wants to provide the most accurate and actionable information possible; therefore, you will reevaluate your study to better reflect the current needs of the retail industry.
“In recent years, as the nature of retail losses has evolved, it has become clear that a broad study of retail losses is no longer sufficient to capture the industry's key challenges and needs,” said an NRF representative. to The Street. .
More retail:
- US senator sends strong message to Pepsi, Coca-Cola and General Mills
- Louis Vuitton parents make major deal to boost sagging sales
- Levi's Collaborations With Iconic Singer After Disappointing Third Quarter
Although it was a shocking announcement, the NRF revealed that it will publish a new report later this year examining the retail theft and violence landscape, which it sees as key challenges for the industry.
Related: Veteran Fund Manager Sees a World of Hurt for stocks
