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Author: Lara

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...

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Main cause of Shrinkage

As a quick reminder, shrinkage is the term used in the retail sector to describe the loss of goods. The shrinkage rate measures the difference between the sales turnover a retail business should have made and what was actually made. This rate can be calculated using the following formula: (total cost of losses / sales turnover achieved) x 100. What causes loss of goods? Experts consider the main cause of shrinkage to be shoplifting. What exactly is shoplifting? Shoplifting refers to any act of theft of items from a store. Shoplifting is an issue for all types of retail businesses,...

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Discover the new experience

Is retail theft or shoplifting a problem for you? The solution: Veesion AI. Our cutting-edge technology automatically detects theft by analyzing CCTV footage from key areas within your store. Watch and discover the Veesion AI experience!

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