The gap between recorded inventory and stock actually available, caused by factors such as theft, damage or recording errors.
Retailers identify shrinkage by comparing recorded inventory with the stock physically available. A shortfall can arise through theft, misplaced goods or administrative errors, so the difference alone does not establish its cause. Measuring it gives staff a starting point for investigating discrepancies and improving stock handling. A shrinkage percentage can be calculated by dividing the inventory shortfall by recorded inventory and multiplying by 100, using a consistent basis for both figures. Shrinkage describes an inventory loss, while loss prevention covers the procedures and actions intended to reduce such losses.
In job listings
Gucci’s Operations Manager role in Toronto developed inventory strategies to optimize stock levels and minimize stock losses and shrinkage. The employee also oversaw cycle counts and stock reconciliation. Comparing the records with the goods on hand helped identify unexplained losses. Search local jobs for “shrinkage”.
