Retail Security Expense as a Percentage of Sales

Retail Security Expense as a Percentage of Sales

KPI Details

Security Expense as a Percentage of Sales measures the company’s investment in securing its retail inventory. High security expenses may be a reaction to high theft rates in the past or may be an indicator of an overall security strategy that is not cost-efficient. While it is good to invest in the protection of physical inventory, companies are going to want to achieve low inventory shrinkage rates while also maintaining as low of a security expense as possible through technology and loss prevention training.

KPI Definition

The amount of security-related expense (includes security cameras, security guards, other security measures, etc.) incurred by a company’s physical store locations divided by the total dollar amount of sales generated over the same period of time, as a percentage.

KPI Calculation Instructions Retail Security Expense as a Percentage of Sales?

KPI Formula :