Proteus 420 Technology Helps Regulated Industries Stay Afloat, As Retail Shrinkage Costs Retailers Billions Each Year

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SAN DIEGO, Calif. — Retail shrinkage occurs when a company loses inventory from causes other than sales—and it’s a problem that costs companies $100 billion annually, according to the National Retail Federation’s (NRF) 2022 National Retail Security Survey (NRSS). In the regulated cannabis sector, retail shrinkage is even more of a concern as business owners must navigate tight regulations in an often cash-only environment combined with the usual causes of retail shrinkage, including theft and inefficient operations.

Proteus 420, an online enterprise resource planning (ERP) system for businesses in e-commerce, retail, healthcare, and highly regulated industries, including alcohol and cannabis, is a go-to solution to help cannabis businesses stay cost-efficient and profitable during a difficult economic climate. The independently-owned software company offers customized tracking tools to tackle loss prevention and navigate compliance in the cash-only industry. Recently, Proteus 420 launched a new retail integration that allows dispensary merchants to connect with customers through their own branded mobile app, featuring robust marketing assets, including loyalty programs, SMS promotions, and cashless transaction features.


In the cannabis industry, along with a challenging regulatory environment, retail businesses are facing declining sales. Loss prevention is an area where dispensaries can protect their bottom line with a targeted approach and with the right system in place.

“It’s critical for merchants to be proactive. By leveraging technology, they are better equipped to mitigate risk and safeguard inventory,” explained Dawne Morris, co-founder and Chief Marketing Officer at Proteus 420. “When choosing a software provider, we advise cannabis retailers to focus on systems that offer day-to-day support, emergency assistance, and can seamlessly monitor employees, cash, and inventory. Detailed reporting is crucial from a compliance perspective.”

A 2022 survey by the National Retail Foundation estimates 65% of inventory loss is due to theft, a trend that is expected to continue with the rising cost of goods. Nearly half of the retail respondents also reported an increase in technology spending to combat these threats. In Quarter 1 of 2023, Proteus 420 has seen an uptick in POS software requests, as many dispensary businesses move away from multi-year contracts with required add-ons to providers with tailored strategies and customer-forward relationships.

Co-founded by tech veterans Dawne and David Morris in 2008, Proteus 420 has devoted more than a decade to cannabis research and industry-specific application development.

Proteus 420 continues to enhance its technology offerings and is currently utilized by licensed operators in every legal U.S. market. For more information on Proteus 420, visit

About Proteus 420

Established in 2008, Proteus 420 is an online enterprise resource planning (ERP) system for businesses in e-commerce, retail, healthcare, and highly regulated industries, including alcohol and cannabis. Headquartered in San Diego, California, Proteus 420 offers highly regulated industries a single source solution for their business operations. The company was co-founded by tech veterans David and Dawne Morris and consists of a team of successful and experienced programmers, developers, and business professionals. Proteus 420 specializes in customer management, point of sale, inventory management, e-commerce, accounting, document storage, grow management, and driver tracking. The innovative platform also provides built-in, state reporting for compliance with all the major reporting agencies. Proteus 420 is a validated software provider with METRC, and other state reporting systems. For more information, visit

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