Shrinkage

Unveiling Shrinkage in Retail: Causes, Impact, and Solutions

Shrinkage, a term familiar to retailers, encompasses various factors leading to inventory loss, including theft, fraud, and administrative errors. In this comprehensive exploration, we delve into the intricacies of shrinkage, deciphering its definition, impact on profits, and its implications for retail operations. From understanding the discrepancy between recorded and actual inventory to analyzing its ramifications on pricing and security measures, discover the multifaceted nature of shrinkage and strategies to mitigate its effects.