engleski

Shrinkage in the Retail Trade in Some European Countries and The Republic of Croatia

Shrinkage in the retail trade is something to which management of retail enterprises should pay due attention. It is calculated in monnetar or in relative terms as a percentage of the sales value. The relative amount of shrinkage is calculated as a percentage of realised sales. The causes of shrinkage in the retail trade are analysed in more details. The results of the available studies show that thefts performed by customers and employees are two key causes of shrinkage in the retail trade. They are responsible for three-quarters of the total shrinkage. This paper provides an overview of the estimated shares of each of the causes of shrinkage in some countries with highly developed market structures with particular emphasis on the European Union member states. There are no studies available that deal with this issue in Croatia. This paper attempts to make a value assessment of this phenomenon in the retail trade in the Republic of Croatia based on the experience of the countries where such researches have been performed. Any reduction in shrinkage and in shrinkage prevention cost can be utilized to increase the quality of business results as well as in the pricing policies management. Pricing policy is a key segment of commodity policy of retail businesses. All available studies confirm that price is a key factor in the selection of what is being purchased, from whom it is being purchased, how much is bought and when is it bought. The costs of preventing shrinkage include personnel expenses of the people performing the job and the cost of equipment and technical aids that are used for shrinkage prevention. Research and interpretation of shrinkage in retail trade, in this paper, is based on the data contained in secondary publications. The aim of this paper is to point out the existence of shrinkage, to determine the extent of shrinkage as a phenomenon and to indicate possible research topics related to shrinkage in Croatian retail trade.

shrinkage, retail trade, European Union, the Republic of Croatia, emplyee theft, shoplifting

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