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SHRINK RESEARCH
Executive Summary
Sources of Shrink Loss
Shrink by Category
Shrink from Operations
Shrink from Theft
Measuring Shrink
Shrink by Department
Perishable Shrink
Non-Perishable Shrink
Automation and Technology
Shrink Survey Resources
Best Practices
WHERE'S MY SHRINK?
TRAINING
ENGAGEMENT
IMPLEMENTATION
ABOUTShrink by Category
The first step in the shrink prevention process involves accurate measurement of the causes, effects, and costs of shrink. Companies often expend great amounts of time, energy, and expense in their attempts to reduce and prevent shrink, but sometimes fail to adopt basic operating disciplines that enable them to know precisely how much shrink they actually have. To determine shrink loss, respondents reported on the following nine operations categories and four theft categories.
CATEGORY |
SHRINK CONTRIBUTION |
| Ordering Inefficiencies | 14% |
| Production Planning | 11% |
| Product Handling Errors | 9% |
| Employee / Cashier Errors | 9% |
| Rotation Errors | 8% |
| Receiving Errors | 4% |
| Damaged / Unsalable Goods | 4% |
| Scan File Errors | 3% |
| Accounting Errors | 2% |
| OPERATIONS | 64% |
| Shoplifting | 13% |
| Cashier Theft | 11% |
| General Employee Theft | 9% |
| Vendor Theft | 3% |
| THEFT | 36% |
For additional questions regarding categories of shrink loss, operational best practices, or higher profit, call 602.448.8502 or email info@wheresmyshrink.com.
