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Retail & Allocation lesson
Shrink
Shrink is stock lost to theft, damage and admin errors. Shown as a % of sales.
Try this lesson free →The idea
Shrink is stock lost to theft, damage and admin errors. Shown as a % of sales:
Formulas
Shrink ÷ Sales × 100Key points
ShrinkStock that's gone without a sale: theft, damage, and counting or paperwork errors.
Shrink %Shrink ÷ Sales × 100.
Where it shows upStock counts: the system says 50, the shelf has 45.
Shrink is found at stock counts. A rising shrink % points to security, damage or process problems.
Practice
1. What is Calgary's shrink %?
$320 ÷ $8,000 × 100 = 4%2. Row 7 has the totals. In D7, work out shrink % for the whole chain, as a decimal.
=C7/B73. What is Montreal's shrink %?
$270 ÷ $9,000 × 100 = 3%4. Calgary has the highest shrink in the chain, at 4%. What should the store look at first?
Where the losses happen: stock counts, security and damaged goodsLearn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.
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