How to Improve Sales in a High-Theft Category

The retail industry has faced many headwinds and tailwinds in the last three years. In 2024, the economy will start to look more “normal”, according to the Mastercard Economics Institute. However, the economy will continue to rebalance itself, requiring businesses to prioritize spending and investments and minimize costs.

While companies strive to balance online and offline shopping, shrink remains a key cost category for retailers, particularly as more retailers explore self-service technologies. Traditional methods of reducing shrink, like keeping high-risk items behind the counter, can hurt sales, as customers may hesitate to ask store associates to retrieve items.

As retailers look to evaluate their merchandizing decisions and balance reducing shrink while increasing sales, they’ll need to have a firm understanding of the impact of asset protection strategies.

This case study explores how a North American retailer used Mastercard’s Test & Learn® solution to understand how keeper cases impact shrink and sales, which types of stores respond best, and where to target the rollout to maximize profitability. Their asset protection strategy led to an impressive $4.6m incremental annual profit.

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