Reply to Theft Targets are shutting down

Forum Index » Off-Topic

Reply to "Theft Targets are shutting down"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]It's interesting to me because I worked in consulting and one of the clients (a large retailer) had expensive real estate and needed to get out of long term leases -- the crime angle was the strongest one considering all of the cost-benefit around shutting down the stores.

When we looked at the data in detail, shrink wasn't necessarily an issue until the company began aggressively staffing loss prevention in the stores they wanted to close (like 15 to 20 times as much was spent on loss prevention compared to the very small amount spent in stores with cheaper leases). Then, the data existed so they could get out of the leases, close the stores and move their business elsewhere cheaper. Rinse and repeat.

What's interesting is the stores actually made money and were net-net profitable. But the contribution to EBITA didn't support keeping them on the books.

My guess, like most things, is that the money is the reason behind this. Not crime or shoplifting, but obviously focusing on shrink you are going to find it.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics