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Definition of 'Shrinkage'
The loss of inventory that can be attributed to factors including employee theft, shoplifting, administrative error, vendor fraud, damage in transit or in store and cashier errors that benefit the customer. Shrinkage is the difference between recorded and actual inventory. According to the National Retail Security Survey, conducted by the University of Florida, shrinkage in the United States during 2009 represented 1.44% of retail sales. This percentage amounts to billions of dollars in lost inventory each year for U.S. retailers. Security guards, security tags and cameras are used by retailers in an effort to reduce shrinkage.
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Investopedia explains 'Shrinkage'
According to the 2009 National Retail Security Survey, employee theft is the biggest contributor to shrinkage, approximately 43%, though employees are much less likely to be caught and apprehended than are shoplifters. In addition, the dollar value of employee theft incidents tends to be higher than shoplifting incidents.
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Search results for 'Shrinkage'
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http://www.investopedia.com/articles/basics/09/time-to-sell.asp
... Significant Market Shrinkage Or Product Commoditization If a company holds a small
percentage of its market and that overall market shrinks, it will need to ...
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http://stocks.investopedia.com/stock-analysis/2009/Booking-An-Uncertain-Future-BKS-AMZN-BGP-NWS-BAMM0526.aspx
... Layoffs, shrinkage and cutbacks in traditional book publishing companies such as
News Corp's (Nasdaq:NWS) HarperCollins and other well-known names in the ...
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http://stocks.investopedia.com/stock-analysis/2011/Small-Size-With-Big-Potential-STRL-HELE-DORM-AZO1018.aspx
... perspective. In most instances, as in the case of many homebuilders, the
shrinkage in size may be more than a temporary thing. It's ...
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http://www.investopedia.com/ask/answers/05/070105.asp
... Such costs may be holding costs, storage costs, shrinkage costs, or any type of
cost arising from a decrease in the value of the inventoried assets. ...
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http://www.investopedia.com/articles/02/103002.asp
... In spite of a slowing economy and sales shrinkage, the technology giant posted earnings
of four cents a share, well ahead of Wall Street estimates. ...
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http://stocks.investopedia.com/stock-analysis/2009/Digging-Into-Retail-Earnings-LTD-CTRN-GYMB-HOTT0824.aspx
... merchandise markdowns; however, the overall decline in gross margin was limited
to 60 basis points due to continued improvement in inventory shrinkage results. ...
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http://stocks.investopedia.com/stock-analysis/2009/Revisiting-Your-ABCs-AAA-B-BBBB-C-CCC-D-DD-DDD0527.aspx
... Serious Shrinkage What do you know; the ABCs portfolio got absolutely hammered in
the past 52 weeks, with no less than six of 10 stocks dropping by more than 50 ...
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http://stocks.investopedia.com/stock-analysis/2011/Cameron-And-National-Oilwell-Looking-For-A-Busier-2011-CAM-NOV-XOM-BP-PBR-GE-FTI0207.aspx
... If investors want to get really picky, it is true that NOV saw about 20 basis points
of margin shrinkage. (For more, see Zooming In On Operating Income.). ...
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http://stocks.investopedia.com/stock-analysis/2009/Gannett-Wins-In-Losing-Industry-GCI-NYT-WPONWS-MNI0717.aspx
... Consider the battered industry, with major players undergoing shrinkage in their
operations and revenues, and with some in peril, and you get the picture. ...
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http://stocks.investopedia.com/stock-analysis/2010/99-Cents-Continues-Dollar-Store-Trend-NDN-FDO-DG-DLTR-FRED-1110.aspx
... The company cited lower operating expenses, at 32.5% of sales, a 70-basis point
improvement, and lower shrinkage costs as the reasons for an improved pre-tax ...
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