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Losses experienced by retailers due to shoplifting, employee theft, or damage to the merchandise exist named Shrinkage.
What is Shrinkage?
Inventory shrinkage happens when a store has fewer things in stock than what is listed on the inventory list as a result of a typing error, or because products are harmed, stolen, or lost between the point of production and the point of sale. This impacts revenue: If shrinkage is significant, earnings fall.
Inventory loss due to issues like employee theft, shoplifting, human mistake, vendor fraud, damage, and cashier error is known as shrinkage. Shrinkage is the discrepancy between the inventory that is recorded on a company's balance sheet and the inventory that really exists.
Inventory loss as a result of events like shoplifting, vendor fraud, staff theft, and administrative error is referred to as shrinkage. Shrinkage is a measurement of the discrepancy between the recorded inventory and the actual inventory.
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