Retail Security Expense as a Percentage of Sales
This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Retail Security Expense as a Percentage of Sales. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.
What is Retail Security Expense as a Percentage of Sales?
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.
Why should Retail Security Expense as a Percentage of Sales be measured?
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.
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