[beervirus]

Loss as a percentage of sales is an odd way of quantifying it. Loss as a percentage of net profit seems like a better figure of merit.

[bdowling]

Exactly. Inventory loss is an expense just like any other of the company (cf. rent, utilities, labor, etc.). For those retailers operating on a thin profit margin, an increase in inventory loss expense affects profits just like an increase in rent, utility, or labor expenses.

[xboxnolifes]

Loss of net profit can get weird (editorially) when losses exceed profit or when net profit is negative.

[beervirus]

Sure, but people understand negative numbers. The pony is that if my profit margins are slim, then a smallish loss in theft can be a big deal. Comparing theft loss to gross sales just obscures the reality.