JCP) lately, unfortunately a lot of them are thieves.
CEO Myron “Mike” Ullman told analysts that inventory “shrinkage” in J.C. Penney exploded in the third quarter, hitting gross margins by 1.1%, more than what was seen in the prior 3 months. Based on the income statement, that suggests that the amount of inventory that simply disappeared from the stores grew by more than $300,000 during the period.
Ullman blamed the loss on J.C. Penney’s replacement of clunky sensor security tags to a more modern radio frequency, or RFID method of inventory tracking. The sensors had to go because they interfered with the RFID system. Apparently it was easier for shoplifters to walk off with product without having paid during the transition process.
Shrinkage is just an industry term for products that somehow disappear between the time a retailer buys it, and when it gets rung up at the register. According to industry estimates about 20% of all shrinkage can be