Omnichannel

Retail shrink, demand forecasting top retailer challenges

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November 2, 2023

Eight in 10 retailers agree minimizing fraud and retail shrink is a significant challenge as is the ability to forecast demand.

Those are findings from Zebra Technologies Corp.'s 16th Annual Global Shopper Study which revealed retailers are feeling the "omnichannel squeeze,' specifically when it comes to managing online returns, according to a press release on the findings.

The study indicates 36% of retailers believe better analytics on shrink could help drive profitability and many retailers expect to deploy loss prevention analytics (49%) and demand planning and forecasting (54%) by 2026. Seven in 10 retailers report the pressure is mounting to improve the efficiency and expense of managing online orders, returns, and the fulfillment process and six in 10 retailers are upgrading their returns management technology by 2026.

On the consumer side, eight in 10 shoppers favor a blend of online and in-store shopping and 75% choose to shop with online retailers that have a physical location.

"Retailers simply can't keep doing what they are doing when it comes to returns," Matthew Guiste, global retail strategy lead, Zebra Technologies, said in the release.. "While consumers are demanding the ability to easily return items more frequently, retailers find themselves in a tailspin trying to manage the increased expenses associated with inventory visibility, reverse logistics and a high-level of returns. Despite their best efforts and capital expenditures, the problem has progressed, not improved."