Similar to the last five years, the average retail shrink rate in 2021 was 1.4%. When taken as a percentage of total retail sales in 2021, that shrink represents $94.5 billion in losses — up from $90.8 billion in 2020, according to the National Retail Federation’s (NFR) 2022 National Retail Security Survey (NRSS).
The NRSS surveyed retail loss prevention and security executives about risks, threats and vulnerabilities to their company and the retail industry. While retail shrink encompasses many types of loss, it is primarily driven by external theft, including theft linked to organized retail crime (ORC). This year’s NRSS report, conducted in partnership with the Loss Prevention Research Council (LPRC), takes a closer look at the impact of ORC on the retail industry.