Box Cutter Damage Statistics Non-Existent
This is Volume 2 in a series of short, informative emails from Ray Davis, president of ADCO Industries, on ideas and solutions to bring profits, safety and productivity to the retail industry.
Box Cutter Damage Statistics because of the negative perception of box cutters, retailers tend to neglect the real issue at hand: product damage that is occurring inside the boxes opened using box cutters! According to the Centre for Retail Research*, total shrink in 2011 cost retailers $119.092 billion, an average of 1.45% of retail sales. Shrinkage, according to CFRR stats, is attributed to: shoplifters (43.2%); employee theft (35%); internal error (16.2%); and suppliers/vendors errors (5.6%).
Why, I ask, is there not any number reported as box cutter damage? No one in retail could possibly think there is zero product damaged by box cutters???
The Ugly Box Cutter Hidden Truth
The truth is that 1/3 of shrinkage is directly attributed to the box cutter. We have documented audits proving this number. That’s $39 billion dollars in total lost profit! It’s so large a number that it’s hard to believe! But the facts are that 1/3 of shrinkage is because of the box cutter! It is real. But how could this happen and management not be aware?
It’s not that simple. It’s because it is so large that it is lost in the day-to-day activities. When you step back and understand this is the result of daily box cutting by millions of stockers, it is a shock — and we need to start a conversation. To be continued…..
* The Centre for Retail Research provides research and analysis of the retail and service sectors in Britain, Europe and globally. It is independent and not connected to any outside organization or interest group.
Read the next post which Reveals SHOCKING INFORMATION ABOUT RETAIL SHRINKAGE!