FAQs

What are the barriers to adopting Total Retail Loss?

Given the depth and breadth of TRL, it is perhaps not surprising that some companies are reluctant to adopt this approach. Recent research looked to identify what were viewed as the main barriers to adopting TRL. The main challenge was found to be not necessarily a lack of relevant data, but more one of data availability, accessibility and collation – pulling the relevant data together to populate the TRL typology. A second issue was found to be the impact of organisational inertia and competing priorities: there are hundreds of years of legacy to deal with when it comes to changing how retail businesses understand, measure and control losses. In addition, responsibility for various types of loss can be scattered across an organisational structure, making it difficult to pull together a TRL strategy. Moreover, as retailing becomes more complex and challenging, other business developments may well be regarded as a more pressing priority. The key is ensuring that the overall value of adopting this approach is measured and communicated with senior management teams.