SHRINKAGE

WHAT IS SHRINKAGE ???

Shrinkage is the loss of inventory that can

be attributed to factors such as employee
theft, shoplifting, administrative error,
vendor fraud, damage in transit or in
store, and cashier errors that benefit the
customer.

Retail Shrinkage
Inventory Shrinkage

f Shrinkage
Inventory = Inventory in Books – Inventory in Physical

Example:- You are suppose to have 500 bags instead of the 450 you counted
WHAT CAUSES INVENTORY SHRINKAGE ???

 Internal Theft

 External Theft

 Damage and Spoiled

 Paperwork Error

 Inventory miscounts
How to control Shrinkage

 100% Security Tags implementation both hard and soft tag as per the process.

 Follow Trail Room door bell Policy.

 Follow GRTM Process.

 Follow shopping bag checking process.

 Staff Alertness.
Trial room door bell policy
Trial room door bell policy

The trial room doorbell policy has been implemented ;

The major guide lines are

Step 1 :

 No Security Guard will be present at the trial room. No trial

No Return of
undergarment

 Trial room will be locked and designated team member on the trial room floor,
will have the keys to the trial room.

 The customer has to ring the bell for assessing the trial room.

 The designated team member will come and open the trial room.
Step 2

• The designated team member will count the no of

garments customer wishes to trial and hand over the
tokens to customer.

• TM has to ensure that security pin tags and price tags are
properly tagged on every garment before customer enters
the trial room.

• It has to be a hassle free process causing zero

inconvenience to customer.
Step 3

 After customer steps out of the trial room, designated team member has to
check the trial room that none of his personal belongings are left and
ensure there are no tags (pin-tacks or price tags) are fallen on the floor.

 He will then count the no of garments, that customer has taken to trial
room, and ensure that the number remains the same, and price tags and
pin tacks are attached to every garment.

 He will then politely guide the customer to the billing area, lock the trial
room and move to his particular department.

 If again the doorbell is rung he will continue the same process

Rules of doorbell policy

 This has to be strictly followed at all stores,

 The designated team member or trial room incharge will be on a

roaster decided by the ASM,

 ASM will be process owner of this process

 Area managers will make sure this is being followed at all the stores.

 This process is crucial to control theft and hence has to be followed

at all stores.
SHOPPING BAG CHECKING PROCESS
After billing when the customers comes at gate for
checkout

MAM/SIR

MAY I CHECK YOUR BILL

Customer handover the Bills and Shopping
bags to Security Guard for verification…
SECURITY GUARD WILL VERIFY THE PHYSICAL AND THE BILL QUANTITY
SECURITY GURAD HAND OVER
THE BILL AND SHOPPING BAG
TO CUSTOMER.
 Mam/Sir, Thank You
For Shopping At
1~INDIA FAMILY MART
Gate responsibility for team members (GRTM) Policy
PURPOSE

 The main purpose for the Gate Responsibility for Team Members is to reduce the chances of shrinkage at the
exit points of the store.
SCOPE
The problem of shrinkage can be reduced.

The security guard’s duty will be under scrutiny.

As per the roaster the CSA will perform their duties.
PROCESS

The Store manager will prepare the roaster for a monthly basis for the GRTM policy for all the CSA’s.

As per the Gate Responsibility For Team Members (GRTM) policy the CSA has a responsibility to stand at the exit gates
along with the security guards.

The CSA will ensure that all the customers are greeted with “Namastey”.

The CSA will keep a check on security guards whether they are performing their duties efficiently.

During the rush hours the CSA can help the security guard in the shopping checking process when he is handling some
other customers.

If the security guards are engaged the CSA will welcome the customers.

The purchase made by the staffs will never be checked by the CSA, it will be checked by the security guards only.
BENEFITS

Reduce the chances of shrinkage.

More accountability towards the customers.

A sense of responsibility in the minds of the security guards.

Tools to Prevent Shrinkage

Inventory Shrinkage Tools

Soft and Hard Camera’s

Security Tag

Sensor detector
device
Soft and Hard Security Tag
Sensor detecting device
Camera’s
Thank You