inventory shrinkage

Meanings

1. 1noununcountablebusiness

   The loss of stock a business suffers from theft, damage, errors, or fraud, rather than from normal sales.

   Grammar: No plural and no 'a': say 'a rise in inventory shrinkage', not 'a shrinkage'.

   Patterns

   • reduce inventory shrinkage
   • inventory shrinkage of X percent
   • a cause of inventory shrinkage

   The chain installed cameras to cut inventory shrinkage in its stores.

   Last year inventory shrinkage cost the company nearly two million dollars.

   Managers review inventory shrinkage figures at the end of every quarter.

2. 2noununcountablebusinesstechnical

   The difference between the stock recorded in a company's books and the stock actually counted.

   Grammar: Often followed by a number or percentage: shrinkage of 1.5 percent.

   Patterns

   • inventory shrinkage of something
   • measure inventory shrinkage

   After the audit, inventory shrinkage came to about three percent of total stock.

   The report measures inventory shrinkage by comparing records with the physical count.

Common combinations

reduce inventory shrinkage

Better tagging helped the supermarket reduce inventory shrinkage.

inventory shrinkage rate

Their inventory shrinkage rate is lower than the industry average.

a cause of inventory shrinkage

Employee theft is a common cause of inventory shrinkage.

inventory shrinkage figures

The board asked for the latest inventory shrinkage figures.

Synonyms and how they differ

shrinkage

The short everyday form used inside retail; use the full phrase when writing formally or for readers outside the industry.

stock loss

A more general British-sounding term for the same idea; it can also cover losses not counted in the accounting figure.

wastage

Focuses on goods spoiled, damaged, or thrown away, while inventory shrinkage also includes theft and record errors.

Word family

shrink verb

to become smaller in size or amount.

shrinkage noun

a general loss in size, value, or amount.

inventory noun

the goods a business keeps for sale, or the list of them.

Commonly confused: inventory shrinkage or inventory turnover?

Practice

Make it your own

Write a sentence using “inventory shrinkage”, then check it and compare it with the examples above.

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