Where stock disappears.
WHAT SHRINKAGE IS
Stock unaccounted for.
WHAT CAUSES IT
Customer theft Staff theft Administrative error Supplier shortfalls Damage not recorded
WHY ADMINISTRATIVE ERROR MATTERS
It is frequently the largest cause and the most fixable.
WHAT REDUCES CUSTOMER THEFT
Visible staff presence Layout with clear sight lines High-value items secured or behind the counter Cameras, positioned usefully Acknowledging everyone who enters
WHY ACKNOWLEDGEMENT DETERS
Being noticed is the strongest deterrent available.
WHAT REDUCES STAFF THEFT
Individual logins Authorisation for voids, discounts and refunds Review of those transactions by person Stock counts Separation of duties Fair treatment and proper pay
WHY THAT LAST POINT
Underpaid and badly treated staff rationalise theft.
WHAT PATTERNS TO WATCH
Voids concentrated on one person Refunds without a customer present Discrepancies on particular shifts Stock loss in one category
WHAT TO DO ABOUT SUSPICIONS
Establish facts before acting.
WHY
Accusations without evidence produce claims and destroy trust.
WHAT TO ESTABLISH
A process for investigating.
WHAT TO REDUCE ADMINISTRATIVE ERROR WITH
Checking deliveries properly Recording damage and waste Correct pricing in the system Training
WHAT TO MEASURE
Shrinkage, as a proportion of sales, over time.
