Improving Inventory Record Accuracy Evidence and guidance to boost sales

Two new ECR Retail Loss reports show why “95% accurate” can mean almost anything when it comes to inventory record accuracy.

[Brussels, February 11, 2026 ] ECR Retail Loss today publishes two free research reports designed to help retailers tackle one of the most stubborn, expensive and under-measured problems in retail operations: inventory records inaccuracy (IRI).

Previous ECR Retail Loss research has shown that over 60% of inventory records contain inaccuracies.

But when companies prioritise inventory record accuracy, the benefits are clear: more stock availability, happier customers, less waste, less shrink. Leading to a sales boost of 4-11%.

So why does the issue persist? Could it be that the way they define the problem is the problem?

Report 1: Defining and assessing inventory record inaccuracy
Ask two experts how to ensure their inventory records are accurate, and you could get 8 different answers.

The first report, Defining and assessing inventory record inaccuracy, tackles a deceptively simple question: what do we mean by “inventory record accuracy”, and how should it be measured?

The research identifies eight distinct approaches to measuring IRI, each telling a different story about performance.

1. Signed Error
2. Shrink
3. Binary error: percentage of inaccurate SKUs
4. Error range: expressed as a percentage
5. Error range: expressed in units
6. Absolute error measure
7. Mean Absolute Percentage Error (MAPE)
8. Symmetric Mean Absolute Percentage Error (sMAPE)

Where there is no single “standard” definition of IRI, using different metrics will tell very different stories. The options themselves are not a problem. But inconsistency when teams benchmark, compare stores, or set targets without realising they are mixing measures that cannot be compared can lead to confusion and inaction.

Ensuring consistency

• Start with intent: define why you want to measure IRI and what decisions you want the metric to support. Then choose the metric that fits.
• Compare like with like: if you want to compare performance across stores, categories or retail banners, ensure you are using the same measure consistently. The report warns that absolute error comparisons can also be misleading without context.
• Stress-test your metric: use simple examples to expose hidden quirks and asymmetries, and check whether the outputs “make sense” for your operational reality.

The report also includes a free spreadsheet for retailers to use to consistently track and report inventory record inaccuracy across any (or all) of the eight key metrics.

Report 2: Inventory accuracy as a capability
Inventory accuracy as a capability: building maturity and customer value, is an even more practical ‘how to’ guide for retailers. It sets out 11 ways to build organisational capability to improve inventory accuracy. And in doing so, boost customer satisfaction and sales.

It shows how leadership and cross-functional collaboration can deliver reduced shrink, stronger margins, and stronger customer loyalty by reducing stock-outs across channels.

The academic rigour of three International Professors.
Both reports are grounded in extensive, real-world insight from retail professionals including 25 in-depth interviews across a range of retail sectors, business models, geographies and senior roles. The research is based on a qualitative approach designed to capture maximum variation and identify consistent patterns, followed by a verification workshop with 46 retail experts to validate findings and refine implications for practice.

The research team comprised Professor Dr Christoph H Glock from the Technical University of Darmstadt, Germany,  Professor Dr Aris A Syntetos at Cardiff Business School and Professor Dr Yacine Rekik from emlyon business school, France.

Download the reports
All of ECR Retail Loss’s reports are free to download from https://ecrloss.com/research-paper/

Retailers, CPGs and academics are also invited to attend the Wrong Inventory Records launch event on 11 February, and the in-person Inventory Accuracy Working Group Innovation Summit in London on 5 and 6 March

Quotes
John Fonteijn, Chair of ECR Retail Loss, says: “Wrong inventory records lead to empty shelves and excess inventory, where inevitably it is at greater risk of being lost, damaged and forgotten, yet for many retailers, inventory record accuracy is not always a priority area, or a KPI for the business.

“Taken together these reports explain why consistency is so important when it comes to defining inventory record inaccuracy, and show how to achieve it.

“We know we’re starting from a place where up to 60% of inventory records may be wrong. And we also know that better accuracy boosts customer satisfaction, and can boost sales by 4-11%. So there’s every incentive for retailers to download these free reports and follow the guidance in them.”

About ECR Retail Loss: 
ECR Retail Loss is a not-for-profit organisation dedicated to making a positive impact on the retail landscape by addressing one of its most stubborn challenges: reducing retail losses. Its motto, ‘Enabling the retail sector to sell more and lose less,’ encapsulates the mission to provide innovative approaches, research and insights that drive profitability and efficiency across the industry.