How do I reduce retail shrinkage?
Shrinkage is the gap between what the books say you have and what is on the shelf. Small-shop owners often call the whole gap theft. A lot of it is the shift’s process: a delivery not checked, damage not written down, a markdown that never hit the system, a count done from memory. Coach that before you buy more gear or name a thief.
Short answer
For a stretch of trading, write down where variance might have come from: receiving, damage, markdowns, and the till. Check deliveries against the docket. Record damage and markdowns the same day. Cycle-count the stock you actually worry about. Review voids, refunds, and no-sales with the person on that shift. Use a camera to confirm an exception, not as a substitute for the count.
Coach the gap in pieces
- Receiving. Someone owns the delivery. Unchecked cartons become “shrink” a month later.
- Damage and price changes. If it is not written down, the book still thinks you can sell it.
- The till. Refunds and voids are a different pile from shelf loss. Do not mix them in one accusation. See prevent employee theft in a retail store.
- Customer theft is a third pile: presence on the floor, not a staff sting. Keep it separate from how you coach your own team.
Cameras after the count, not instead of it
Point them at the door, the till, and the stock that leaves. Play back when a count disagrees with a delivery or a refund. Coverage, without a fake ranking: security cameras for a retail store. Register versus picture: cameras vs POS.
Attribute the gap, then coach the shift that caused it
SoraData soft-connects cameras you already run so a stock or till exception has context. Request a trial or view plans when it fits.