What is shrinkage in retail?

Loss from shoplifting and employee theft.

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  1. Loss from shoplifting and employee theft ✔
  2. A type of store discount
  3. Clothes getting smaller in the wash

Why: Shrinkage is retail loss caused by shoplifting and employee theft.

Huh, didn't know that: Shrinkage is retail loss caused by shoplifting and employee theft.

The dad joke
Shrinkage shrinks profits, not just sweaters.
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References

Answer: Loss from shoplifting and employee theft. Shrinkage is retail loss caused by shoplifting and employee theft.

  1. Scouting America: Crime Prevention www.scouting.org/merit-badges/crime-prevention
    employee theft (also known as shrinkage)
    Checked 2026-11-07.

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