What is Shrinkage?
Theft poses a significant threat to stores, not just by eroding the trust between store owners and their customers, but also by negatively impacting the store’s financial performance. To measure the extent and impact of theft, we include it in the store’s shrinkage calculations. This approach helps assess the discrepancy between the store’s theoretical inventory and its actual stock.
What is Shrinkage?
Shrinkage refers to the gap between a store’s theoretical inventory—what it should have based on accounting records—and its actual inventory. Essentially, it reflects the...