Retail Shrinkage Quiz

What is retail shrinkage primarily defined as?

• Increased sales revenue

• Excess inventory on hand

• Missing money or inventory

• Customer satisfaction

Which of the following is the number-one source of shrinkage in the retail industry?

• Administrative errors

• Shoplifting

• Employee theft

• Vendor fraud

What percentage of total shrinkage is attributed to employee theft?

• 18.8%

• 33.2%

• 5.8%

• 6.6%

Which of the following is NOT a cause of retail shrinkage?

• Return fraud

• High employee wages

• Vandalism

• Internal theft

What is one of the first steps in preventing retail shrinkage?

• Increasing product prices

• Reducing store hours

• Identifying sources of shrink

• Hiring more employees

What is a common measure to prevent retail shrinkage?

• Decreasing employee accountability

• Establishing security policies

• Limiting customer interactions

• Reducing inventory tracking

What impact does shrinkage have on a business's revenue?

• Leads to revenue loss

• Improves stock availability

• Enhances cash flow

• Increases profitability

Which of the following is a method to minimize cash payments?

• Offering cash discounts

• Encouraging cash transactions

• Increasing cash drawer size

• Promoting credit card usage

What should be required for all returned items to prevent retail loss?

• A manager's approval

• A product exchange

• A receipt

• A customer survey

Which of the following is a sign of suspicious behavior?

• Making eye contact with employees

• Repeatedly picking up and replacing items

• Asking for product information

• Shopping with friends