2. Shrinkage and Loss Prevention

Four sources of shrinkage

• External theft — shoplifting, barcode switching, refund fraud.
• Internal theft — unrecorded staff purchases, false voids or refunds.
• Process errors — wrong receiving counts, unrecorded waste, pricing errors.
• Damage and expiry — poor rotation and handling.

What reduces loss

• Greet and stay visible; service deters theft.
• Check delivery quantities before signing.
• Record all waste and damage on the same shift.
• Keep high-value stock in designated locations.
• Report unusual voids, refunds or stock movements to the Store Manager or through the confidential line.

Personal safety first

Never confront, chase or detain a suspect. Observe, inform your supervisor, and record what you saw.