The Three Doors Of Shrink
Explain the three primary sources of retail shrink and name the first diagnostic question for each.
Shrink is not one problem. It is a variance with multiple possible doors. Door 1: External Theft This is customer or outside-group loss: concealment, pushouts, price switching, refund fraud, booster bags, or coordinated ORC events. The mechanism is opportunity plus exit confidence. Controls focus on visibility, service, product protection, reporting, and safe escalation. Door 2: Internal Theft This is loss created by someone with access: false returns, sweethearting, gift-card abuse, under-ringing, collusion, or stockroom removal. The mechanism is trust plus system access. Controls focus on exception reporting, approvals, role separation, and evidence preservation. Door 3: Process Failure This is non-malicious…
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