1. Purpose & Objectives

Shrink refers to financial losses due to theft (internal/external), administrative errors, cashier mistakes, or damaged inventory. While some loss is inevitable, preventative measures and management oversight help control shrinkage.

✅ All shrink incidents must be recorded in the Shrink Log.

2. Preventative Measures

📌 External Theft

• Greet and engage customers throughout the store.
• Report suspicious activity to the Manager on Duty (MOD) immediately.

📌 Internal Theft

• Follow all cash-handling procedures.
• Adhere to policies for employee purchases and entering/exiting the premises.

📌 Administrative Errors

• Minimize distractions while entering data.
• Double-check work for accuracy.

📌 Cashier Errors – Cash Handling

• Count change back to customers.
• Never leave the cash drawer unattended.
• Verify $100 bills and involve a manager if unsure.

📌 Cashier Errors – Item Entry

• Remove all tags from products at checkout.
• Review pricing and quantity before finalizing transactions.
• Report incorrect tags to a manager.

📌 Damaged Products

• Handle and wrap items carefully at checkout.
• Use team lifting for heavy objects and navigate tight spaces with caution.

3. Recording & Tracking Shrink

📌 While prevention is key, losses must be documented for review.
📌 All incidents should be recorded in the Shrink Log for tracking and accountability.
📌 Shrink Log location: My Drive/store name/logs & tracking/shrink log.

4. Role Responsibilities

📌 Manager on Duty (MOD):

• Collect details of shrink incidents and summarize them in an email to the Store Manager.
• If an employee error is involved, request a written statement from the employee.

📌 Store Manager:

• Review the incident and determine corrective actions.
• Implement preventative measures (e.g., retraining or disciplinary steps).
• Conduct follow-ups with employees or members.
• Record the incident in the Shrink Log, including retail vs. shrink value of items.
• Review security footage for video evidence of the incident.

📌 Operations Manager:

• Review each store’s Shrink Log monthly.
• Approve member reimbursements (if needed) and coordinate with Accounting.
• Address serious or recurring shrink issues with the Store Manager.

5. Managing Shrink

📌 Store Managers must proactively address behaviors that contribute to shrink.
📌 Address poor habits before they lead to significant losses.
📌 Review incidents to determine if they are isolated mistakes or patterns of behavior.

6. Quarterly Shrink Review

📌 Operations Managers will conduct a quarterly shrink review with store teams.
📌 Purpose: Identify areas for improvement at both store and company levels.
📌 Store Managers must monitor shrink as a percentage of sales.

By tracking shrink, enforcing preventative measures, and holding teams accountable, Westside Market ensures financial stability and loss prevention.

7. Summary: Key Takeaways

✔ Prevent shrink by enforcing security measures and following proper procedures.
✔ All incidents must be recorded in the Shrink Log for accountability.
✔ MODs & Store Managers must investigate and take corrective action.
✔ Cashiers must double-check transactions to avoid pricing errors.
✔ Operations Managers review shrink levels quarterly and address problem areas.

By tracking shrink, improving employee awareness, and enforcing accountability, Westside Market minimizes financial losses and maintains operational efficiency.