Walmart (NYSE: WMT) and Target (NYSE: TGT) have a theft problem. In recent months, the big box retailers have been complaining about an increase in "shrinkage," a retail industry term for when in-store stock is lower than what's accounted for in the books. In other words, people walking out of the store with unpaid inventory is on the rise. Even commerce software company Shopify (NYSE: SHOP) has a frequently visited webpage explaining "shrinkage," how it's on the rise, and how small retailers can combat the problem. Shopify estimates it was a $61 billion-a-year loss for the retail space a few years ago, but that figure has reportedly increased in 2022. Inflationary pressure on consumers is an oft-cited reason for this rise in theft.

Enter Nvidia (NASDAQ: NVDA), which believes it has solutions to help with retail shrinkage. Here's what investors need to know.

During their third-quarter 2022 earnings calls and post-earnings interviews, Walmart, Target, and other retail executives explained how big a problem shrinkage has become. Target specifically said theft had an estimated $400 million impact on gross profit margin of merchandise sold through the first nine months of 2022.

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Source Fool.com