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Professor of Marketing

Katrijn Gielens

Katrijn Gielens is an internationally recognized expert in the areas of international retailing and product innovation. Dr. Gielens teaches courses in international retail management and econometric and market response models. Before she joined UNC Kenan-Flagler, she served on the faculty of the RSM Erasmus University, one of UNC Kenan-Flagler’s OneMBA partners, and Tilburg University.

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Contributor Brief·Katrijn Gielens · 1 article
Updated Sep 19, 2023

Retail theft has fundamentally broken store economics viability

Gielens argues that escalating retail theft has crossed a threshold where physical store operations are no longer economically defensible for many retailers, forcing a strategic recalculation of brick-and-mortar presence. She contends that the traditional cost-benefit analysis of physical retail—once anchored by customer convenience and brand presence—no longer holds when loss prevention expenses and shrinkage exceed the margins generated by in-store sales.

undisclosed specific rate

Rising shoplifting forces retailers to question store viability

“Retail theft is pushing stores to weigh the risk of keeping a physical presence”

Retail Theft is Pushing Stores to Weigh the Risk of Keeping a Physical Presence

Three dimensions of retail store viability crisis

Shoplifting losses eroding store margins8
Loss prevention costs rising faster than revenue7
Economic case for physical retail deteriorating9

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33%Shoplifting losses
Shoplifting losses eroding store margins
Loss prevention costs rising faster than revenue
Economic case for physical retail deteriorating

1 article

Limited source material provided for analysis

Physical stores remain economically viable under pressure

Article 1 core argument

Retailers must fundamentally reconsider their store footprint strategy

Implicit in article thesis

“Theft economics now determine retail real estate decisions”

Themes:Shrinkage as strategic business constraintPhysical retail viability reassessmentLoss prevention cost escalation

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