Bad store management is the prime cause of high shrinkage in vulnerable stores, according to a new report from ECR Europe.

The new ‘Hot spots in the supply chain’ white paper says good management and good staff are the two best ways to tackle shrinkage in vulnerable stores.

Report co-author Dr Paul Chapman, senior research fellow at Cranfield University School of Management, said: “We are not dismissing social geography, but high shrink in hot stores is mostly a product of poor managers. There is a strong case for linking performance-related pay to shrinkage.”

Chapman said technology such as CCTV and security tags was “a distant third” priority for retailers looking to address the issue of stock loss.

The focus should be on gathering as much data as possible on what’s going missing and where, as well as making store managers more accountable for shrinkage and improving auditing procedures.