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How can retail shrinkage be reduced?
How much shrinkage should a retail store have?
What causes retail shrinkage?
What is retail shrink?
The first step in reducing overall retail shrinkage is to identify the different types. Below are five types of shrinkage commonly found in stores: 1. Shoplifting or theft. In 2020, shoplifting increased by 13 percent and is typically the largest contributor to retail shrinkage.
- Clarify Company Policies. One of the biggest causes of shrinkage is employee and customer theft. Confirm employees have access to company policies and the employee handbook at all times.
- Train Employees About Theft Prevention. There’s another way you can reduce shrinkage in retail and reduce theft, and that’s by training all new and current employees on how to prevent customer theft and shoplifting awareness.
- Reduce Human Error With Checklists and Reporting. Another huge factor that impacts shrinkage in retail is the human factor. We’re all human and we all make mistakes from time to time, but frequent human error leads to lost inventory or miscounted money in the register.
- Conduct Frequent Inventory Audits. Frequent inventory auditing gives managers a better understanding of how much actual inventory is there versus what has been reported.
- What Is Shrinkage?
- Types of Inventory Shrinkage
- Retail Shrinkage Prevention Strategies
- Create A Shrinkage Prevention Plan For Your Store
Shrinkage is an accounting term used to describe when a store has fewer items in stock than in its recorded book inventory. Factors contributing to shrinkage include employee theft, shoplifting, administrative errors, vendor fraud, product damage, and more. Shrinkage has a direct correlation with profit: the higher your shrinkage, the lower your pr...
Now that you understand the basics of loss prevention and its impact on retailers, let’s look at common types of inventory shrinkage: 1. Shoplifting or theft 2. Return fraud 3. Employee theft 4. Administrative error 5. Vendor fraud 6. Unattributed loss
Despite the many known (and unknown) causes of inventory shrink, there are useful ways to prevent it. Any mix of the following methods can work: 1. Audit hiring and training practices 2. Institute clear policies 3. Create strong deterrents 4. Get buy-in 5. Hire a loss prevention manager 6. Develop strict accounting practices 7. Improve inventory ma...
In the retail world, shrinkage is a part of life—but that doesn’t mean you have to settle for throwing away your sales each year. Any way you add it up, it’s a big issue for retailers, especially those with tight margins already. Electronic item tags, high-tech surveillance and facial recognition, you name it—retailers continue to search for a one-...
Feb 3, 2023 · If you work in retail management, it's important to learn about identifying and preventing product loss so that you can maintain a profitable and sustainable business. In this article, we define retail shrinkage, list some common types of shrinkage and provide suggestions for preventing each one.
Dec 19, 2023 · Monica Toriello: Hi, everyone. We’re back with one more episode before 2023 comes to a close. Our topic today is a timely and important one for retailers: retail shrink or, as it’s also known, shrinkage. It’s an issue that has a significant impact on retailers’ bottom lines.
Jun 19, 2024 · How To Prevent Shrinkage In Retail: 10 Effective Ways. Businesses employ various strategies and technologies to address shrink in retail. Retailers should invest in security systems, surveillance cameras, and trained personnel to deter shoplifting and employee theft. 1. Inventory Management Software
Dec 21, 2023 · Explore the latest retail loss prevention strategies to reduce inventory shrinkage. Plus, find where your business is experiencing shrinkage.
