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In accounting, shrinkage or shrink occurs when a retailer has fewer items in stock than were expected by the inventory list. This can be caused by clerical error, or from goods being damaged, lost, or stolen between the point of manufacture (or purchase from a supplier) and the point of sale. [1] High shrinkage can adversely affect a retailer's ...
The processing of returned or damaged stock, for example, can cause articles to be removed from inventory and discarded (which contributes directly to shrinkage) rather than sold at a discount, donated, returned to vendors for credit, or otherwise removed from inventory in a manner that minimizes financial loss.
On a call with reporters, Its CFO and COO Michael Fiddelke told Yahoo Finance the company has hit a plateau when it comes to shrink, including retail theft. "[Inventory shrink] was one of the ...
Dead Inventory. Dead inventory or dead stock is consisting of different kinds of products that was outdated or only a few consumer requests this kind of product. So manager pulled them from store shelves. To reduce costs of holding this kinds of products, company could hold discount events or imply price reduction to attraction consumers ...
Inventory shrink, including retail theft, is still weighing on Target . In 2023, Target faced multiple headwinds, as tightening financial conditions dragged down its top and bottom lines. Higher ...
Michael J. Fiddelke, Target's chief financial officer, said this week that inventory shrink remains a major "headwind" for the company, two months after Target cited the closing of nine stores on ...