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Retail shrinkage is the portion of your inventory that gets lost or stolen.
Inventory shrinkage in your business or retail store is when the physical count of your merchandise or stock differs from the amount your records indicate you should have. Shrink can be a result of a number of factors, which occur singly or in combination, including employee or customer theft, misplaced stock, inefficient recordkeeping, shipping errors or order fill errors. While paper errors show a trail of inaccurate loss, theft is a true loss of physical inventory. To reduce inventory shrinkage you'll need to increase security and control each event which involves merchandise.
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