Reducing Inventory Shrinkage Could Double Convenience Store Profits
These statistics, taken from data in the 2003 National Convenience Store Shrink Survey, show how the financial benefits of reduced inventory shrinkage will go directly into increased profits.
- The average convenience store in the survey reported annual sales of $2,474,727. Stores sold $1,437,109 in motor fuel and $1,037,618 in-store merchandise.
- The NACS reports the average convenience store earns a net profit of 0.82% or in our example $20,293.
- However, the average store lost $36,131 to known inventory shrink. Almost all of the shrink (97%) occured in-store.
- More than three fourths of the stores surveyed reported some form of "positive" price manipulation which can hide the true amount of store shrinkage by as much as 37%. True in-store shrinkage is probably nearer to $55,630 per store.
An effective loss prevention program helps owners reduce shrinkage below the national average. A 37% reduction in shrinkage would lead to an additional $20,583 in store profit--a doubling of profits. The AccuTrak Verified Inventory and Loss Prevention Service is designed to be a key part of convenience stores' loss prevention program. We can help you acheive your profit goals.
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