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Retail & Allocation lesson

Shrink

Shrink is stock lost to theft, damage and admin errors. Shown as a % of sales.

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About 5–10 minutes · no sign-up needed

The idea

Shrink is stock lost to theft, damage and admin errors. Shown as a % of sales:

Formulas

Shrink ÷ Sales × 100

Key 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

Try each one in your head first, then open the answer.

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/B7
3. 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 goods

Learn 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.

Try this lesson free →
About 5–10 minutes · no sign-up needed