Glossary
Shrinkage
Shrinkage is the gap between what should be in stock and what you actually find, caused by theft, damage or recording mistakes.
What it means for a shop owner
It only shows up when you count, so the later you count, the bigger the gap and the harder its cause is to trace. Measure it as a share of sales, and if it climbs, check receiving, the shelves and the till. Record damaged and expired goods under their own name so they are not mixed with theft.
A worked example
The record says 200 pieces and the real count is 194. Shrinkage is 6 pieces, and with 1000 pieces sold the rate is 6 out of every 1000.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes