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Unit 11: Loss Prevention and Shrinkage Control

Internal Theft: Internal theft can be anything from taking merchandise to taking cash or store Notes
supplies.
OSHA: OSHA is the main federal agency charged with the enforcement of safety and health
legislation.
Scrap materials: Scrap materials are those that are not usable in their present form, but that still
have value.
Shrinkage: The difference between the perpetual book inventory and the physical inventory
count is called shrinkage.

Surplus materials: Surplus materials are those that, while still in good condition and usable,
have no foreseeable use within specified operations during the next 12 months.

11.7 Review Questions

1. What is meant by term loss?

2. What is loss presentation?
3. What is shrinkage means?
4. Define the term ergonomics.
5. What are scrap material?
6. What is surplus material?

7. What is internal theft?
8. How does internal theft may be controlled?
9. What do you understand by the concept of cost control in retail store?
10. Write a brief note on the concept of shrinkage control.

Answers: Self Assessment

1. business volume 2. under-staffing

3. store 4. never
5. False 6. False
7. True 8. True
9. down 10. declines

11. Paperwork errors 12. honest
13. False 14. True
15. True

11.8 Further Readings

Books Berman B. Evans J. R., (2004), Retail Management, 9th Edition, Pearson Education

Berman, Barry. Evans, Joel R. Mahaffey Tom, (2005), Retail Management: A Strategic
Approach, Pearson Education

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