Retail Risk Costs Hit $23B
Running a business is always risky, but for retailers, the costs are enormous—a new study found risk for US retailers will total $23B this year.
That’s $5.93/$1k of sales, according to global consulting firm Milliman, and more than half that risk comes from injuries sustained by workers and customers, Retail Dive reports. Workers’ compensation costs account for 40% of the total, 20% comes from customer injuries and property damage, and the remaining 40% is attributable to cyberthreats and other liabilities.
While the study finds retailers have improved health and safety conditions due to better working conditions and training, risk costs have remained steady thanks to rising insurance claims and the emergence of new concerns like cyberattacks. [RD]