Retail sales leakage occurs when there is unsatisfied demand within the trading area and that the locality should provide extra stores spaces for such type of businesses.
Attracting such national retail chain stores and restaurants to a community can prevent this type of expenditure leakage and create local jobs.
[2] Additionally, in retail trade, leakage, or shrinkage can also be the loss of stock without payment, usually due to fraud by employees or shoplifters.
Revenue leakage, is when those movements of funds are not as good as they must be: if, for instance, a purchaser, who should be paying the full price of something, manages in one way or another, maybe fraudulently, maybe through manipulations of the system, to get a discount.
Especially amid an economic downturn, given the complexity of decision making and the pressures associated with the quest for deals volume, there is a characteristic tendency to wind up even less disciplined in giving discounts and exceptions to essential evaluating, policies, terms and conditions.
Adequately examining transaction evaluating enables companies to distinguish the hidden sources of revenue leakage and to achieve improved estimating opportunities and profit.
[5] A leakage analysis is considered to be one of the most profitable tools in deciding on particular commercial enterprises with retail potential in a given locale.
This can give rise to an increase in unsatisfied demand for digital shopping services in certain locations where the provision of e-commerce is limited.