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Unidentified losses, those that go unnoticed in daily operations and only surface during inventory counts, are growing at an alarming pace in Brazilian retail. According to the 2025 Abrappe Survey, they already account for nearly 40% of total sector losses, reaching 48.1% in channels such as cash & carry (atacarejo) one of the fastest-growing formats in the country. This topic was addressed in a recent article to which I had the opportunity to contribute on the Varejo SA portal.

Although the overall average loss rate declined from 1.57% to 1.51%, the share of unidentified losses underscores the urgency for more structured, data-driven management. After all, every untracked error has a direct impact on operating margins, especially amid high staff turnover, a shortage of skilled labor, and intense competitive pressure.

Invisible losses: what’s really behind the numbers

These unidentified losses go far beyond theft. According to surveys conducted by Inwave, a large portion is related to everyday operational failures, particularly at checkout and in weighing areas. Among the most common errors are product underscanning, incorrect multiplication, and code switching, especially for weighed items such as meat, produce (fruits and vegetables), and deli products.

It’s common for operators to rely solely on the scanner’s beep without checking the screen, allowing items to pass without being registered. In addition, counting errors for multipack items (such as cases of milk) or swapping codes between similar products create discrepancies that quickly accumulate and undermine store profitability.

From a reactive posture to continuous operational intelligence

Brick-and-mortar retail still largely operates under a reactive model acting only after losses occur. But this approach becomes unsustainable as businesses scale and operations grow more complex. Transformation comes from adopting a continuous operational intelligence mindset that combines real-time monitoring, process automation, and data and video auditing.

In practice, this means connecting critical points across the operation, from POS to the sales floor, from scales to EAS antennas, into a single, centralized view. This integration enables teams to identify failures as they happen, make agile decisions, and significantly reduce the financial impact of operational errors.

The role of technology in loss prevention

Digitizing loss management is no longer a trend, it’s an efficiency requirement. Darwin, Inwave’s platform, is an example of how technology can proactively combat invisible losses. It enables real-time monitoring of critical store areas through a single web interface, integrating data from POS systems, sensors, scales, and EAS antennas.

This allows managers to track operations in real time, perform remote audits, and ensure adherence to management-defined processes. In this context, technology acts as an active support for store teams, reinforcing execution and providing visibility into what actually happens day to day.

“More than preventing losses, the goal of technology is to ensure process adherence, support teams, and contribute to a smoother and more transparent shopping experience for the end consumer.”

A new perspective on loss management

Stop viewing loss prevention as an isolated department, it’s an essential step toward operational maturity in retail. When integrated into the business strategy, the area becomes a pillar of efficiency and sustainability.

Retail already has the data, processes, and tools to evolve. The challenge now is turning information into action, and that starts with recognizing that invisible losses must also be seen.

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