At a recent customer visit I learned that grocery “shrink” is planned losses due to stolen food, expired food, prepared food that needs to be thrown out, etc. The National Supermarket Research Group (!?) puts per store shrink at 450K per store. Sheesh. That’s a lot of mangos.
My favorite term is “bottom of basket shrink” or BOB shrink which is loss due to groceries that are not paid for (whether intentional or not) because they are missed on the bottom of the basket.
I think other company’s problems (OCP) are fascinating.
It doesn’t surprise me that every year 450K is thrown down the toliet because of untrained employees and bad manangement. People have to learn that to make money you have to spend money. Granted that you don’t have to spend all of your profit to fix your stores, but there is a way to spend the right amount and come ahead each year. Shrink is like the easiest way to save money. If your employees take the time to give it some attention each and every day, I do believe that your particular shrink can be deminished to a minimum. I guess that’s what makes grocery is a favorite of mine to be a part of. There are a lot of different elements to think of when running a good store. It is most fascinating. :)