In 2023, The Home Depot was one of several major retailers to call attention to the growing cost of retail theft. In the first and second quarters, the home improvement chain highlighted that elevated levels of shrink were squeezing margins and driving up operational expenses.

But the second part of the equation—the higher operational costs that come with mitigating retail theft—is arguably a less-picked-over topic than the cost of shrink itself.

As Home Depot pointed out in its recent annual report, “While we have a number of initiatives underway to address shrink, minimize theft, and maintain safety in and around our stores, these efforts require operational changes that may increase costs and reduce margins…”

• Operating expenses already increased 2.7% year over year in 2023, and they were up around 5% from 2021.

Home Depot’s public financial documents do not provide a breakdown of how much shrink contributes to that increase, but Scott Glenn, VP of asset protection for Home Depot, told Retail Brew that the problem has changed the firm’s thinking around the financial cost and investment needs of theft prevention.

Keep reading here.—AV

Multi-channel and CPG retailers are using every tool they can to gain a competitive advantage. Right now, generative AI and machine learning are unmatched in their power to transform retail—meaning they could be that competitive advantage.

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Save your spot.

Online grocer Misfits Market said this week it’s now selling products that were intended to be sold at Foxtrot before the retailer abruptly ceased operations last month.

The shutdown left not only extra food and beverage inventory on shelves, but more in warehouses, and Misfits tapped into its recent partnership with Pod Foods, a distributor that connects small emerging food brands with retailers, to give 35 products across 15 brands (virtual) shelf space.

Jessie Kimsey, Misfits Market’s senior category manager for snacks and beverages, told Retail Brew the retailer scooped up 95% of the ex-Foxtrot inventory available via Pod Foods.

Keep reading here.—EC

Google unveiled a suite of new tools for retailers on Tuesday with the goal of making online marketing materials and search queries for products more compelling for shoppers.

More than 40% of shopping-related searches include the name of a brand or retailer, according to Google. So the tech giant is offering new generative AI-powered tools to improve how those companies appear in search results.

One new feature, which will roll out in the coming months, allows brands to create a search profile that showcases their products, customer reviews, and store imagery. Inspired by Google Maps, the business profiles will appear in search results alongside ads.

Keep reading here.—AV

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