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COO guide to AI-driven retail loss prevention and risk reduction

Retailers lose an estimated $132 billion annually to shrink – and that’s only part of the total loss picture.

According to the Total Retail Loss 2.0 report – commissioned by the Retail Industry Leaders Association with the support from the ECR Retail Loss Group – retailers experience 42 distinct categories of loss, spanning beyond theft into process failures, administrative errors, vendor discrepancies, damage, waste, missed sales, and more. Shrink captures just one measure – the losses retailers can quantify – not the full operational picture.

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A man uses a tablet in a clothing store; text highlights an AI-driven retail loss prevention guide and $132 billion in annual retailer losses.
And retailers know it. The report found 89% of retail leaders are aware of total retail loss, and 64% report it has already impacted the way their organization manages loss. Yet only 55% say they can actually calculate total retail loss across their business, largely because the data required is still siloed, incomplete, or inconsistently captured across functions.

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