There is an 83% correlation between shrink and how a store is managed. When you think about it, that’s a pretty staggering number. What does it mean though?
Think of it this way: The majority of shrink is a direct result of how well or poorly managed a convenience store is. That’s good news! It means that it is well within a manager’s power to improve their store’s operations and reduce shrink.
Getting Things in Order
A neat, well-organized store is the key to combating shrink. When a store is messy, it not only makes it harder to track damaged goods, paperwork, and cash and cash equivalents, but it also sends a message to employees that it is easier to steal and get away with it. It is the manager’s responsibility to put a focus on keeping their store well-presented and free of clutter.
Approximately 80% of shrink is a result of employee theft. While it may be demoralizing for a manager to face the fact that most shrink is due to their own team, good leaders can’t turn a blind eye. Regular auditing and reporting, surprise cash auditing, and video monitoring all work to prevent employee theft. Additionally, employees who are paid a fair wage and treated well are less likely to steal.
Keeping Track of Vendors
Around 15% of shrink is a result of vendor theft. A consistent process or system for taking deliveries goes a long way to keeping vendors honest. It is the manager’s responsibility to check in merchandise, or ensure that the person receiving deliveries is trained to do so. Further steps to take to curb vendor theft include allowing only one vendor in the store at a time and having merchandise taken to a designated neutral check-in area.
Getting Outside Help
It can be hard for managers to tackle shrink on their own. Auditors who specialize in c-stores have a unique knowledge of all the things that can impact shrink. Reach out to Quantum to learn how our auditors can help you manage your shrink.