WHAT AND WHERE IS PRODUCE SHRINK?
SHRINK CAN BE FOUND IN MANY AREAS
First of all, what is shrink? Shrink is the retail dollar value of product that was charged to a produce department but not sold for full retail value. The difference is in the form of SHRINK loss or WASTE through the produce system.
Here is a simple example: Say a produce department received 500 cases of produce items for the week at a total retail value of $10,000 and sold $9,000 worth. This is a difference of $1,000 that needs to be accounted for.
After taking a physical inventory, there is $1,000 of product unaccounted for. That $1,000 is termed as SHRINK loss.
CAUSES OF PRODUCE SHRINK
Three Major Causes of Produce Shrink are:
- Inefficient Ordering
- Improper Handling
- Heavy Inventory Assets (especially feature ad items)
Other key causes of SHRINK:
- Not checking inbound product item for item
- Not dating cooler/backroom wareroom product
- Improper culling and rotation
- Avoiding reworks and reductions in a timely manner
- Neglecting to follow crisping program
- Leaving product out of refrigeration after delivery
- Price signs not posted on all items
- Overloaded display stocking levels – unnecessary product piling
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