What Is Internal Shrink?
Internal shrink mentions loss of inventory, cash, or other business assets by employees. Internal shrinking hurts business operations through theft, fraud, or disappearing items. It’s a significant issue for businesses, especially in retail.
Let’s illustrate this with an example. Say you own a bakery, and you see cupcakes disappearing mysteriously. Behind the scenes, one of your bakers is sampling too many cupcakes, resulting in product shortage and causing significant damage to your profits.
