In simple terms, retail shrinkage is the difference in the value of stocks as per books and the value of actual stock at the store on any given date.

While some of the issues are beyond the control of the retailers, the subject of shrinkage is within the control to a great extent. This is particularly important to large grocery chains who can’t afford to have sophisticated RFIDs and sensors considering the nature of products being sold predominantly.

 As per the US Census Bureau, the young population in India is likely to constitute 53per cent of the total population by 2020 and 46.5 per cent of the population by 2050 — much higher than countries like the US, the UK, Germany, China etc. India’s demographic scenario is likely to change favourably, and therefore, will most certainly drive retail sales growth, especially in the organised retail segment.

PricewaterhouseCoopers estimates suggest that the Indian retail sector is worth USD350 billion and is growing at over 20 percent per annum. India, as compared to other countries, has been relatively insulated from the global economic slowdown. This is apparent when looking at India’s consumer confidence levels, its GDP projections for the new fiscal year, investor confidence in response to recent election results, etc. While the retail sector will benefit from positive macroeconomic and microeconomic factors, it should be noted that retailers are not resting on their laurels.