The Rise of 'Shrink': Retail's Biggest Story

Retail theft, also known as "shrink," has become a major concern for retailers, with executives mentioning it in earnings calls to explain sinking profits. Companies like Dick's Sporting Goods, Dollar Tree, Macy's, Home Depot, and Target have all cited shrink as a significant issue impacting their financial performance. Data shows that theft and concerns for safety are on the rise, with retailers reporting a 26.5% increase in organized retail crime incidents. While some critics argue that the problem may be overblown, experts believe that the references to shrink in earnings calls reflect a real problem for the industry, exacerbated by price increases, a weaker economy, and shifts in shopping habits.