The National Retail Federation had said that nearly half of the industry’s $94.5 billion in missing merchandise in 2021 was the result of organized theft. It was likely closer to 5 percent, experts say.
My understanding is that shrink includes all losses. So it’s retail and employee theft yes, but it also includes things that get written off like spoiled and outdated food, broken merchandise, vendor fraud, ticketing and PoS errors (like putting the wrong price into the computer), over h ordering items and having to sell them for less than anticipated to clear them out.
So “shrink” is all the things that happen to stock that make it worth less than expected. But you’re not going to blame yourself or your vendors, so blame the customer instead!
My understanding is that shrink includes all losses. So it’s retail and employee theft yes, but it also includes things that get written off like spoiled and outdated food, broken merchandise, vendor fraud, ticketing and PoS errors (like putting the wrong price into the computer), over h ordering items and having to sell them for less than anticipated to clear them out.
So “shrink” is all the things that happen to stock that make it worth less than expected. But you’re not going to blame yourself or your vendors, so blame the customer instead!