Your Shrink Action Plan
Your First Week of Shrink Tracking – A Checklist
In The Shelby Report, we examined how shrink averaging 3.0% is silently eroding independent grocer margins—and why nearly one-quarter of stores are experiencing increases, according to the FMS/NGA 2025 US Independent Grocers Financial Study. Read the full article here. Understanding the problem is step one. Step two? Taking action. This week, establish your shrink baseline with a simple daily tracking system.
Set Up Your Tracking System
Choose your method—even a simple notebook works. Create columns for:
- Department
- Item/Category
- Reason (spoilage, damage, markdown, theft, administrative)
- Dollar value
- Date/Time
The key is consistency, not complexity.
Capture Everything Daily
Document every known loss as it happens:
- Expired products pulled from shelves
- Damaged goods in receiving
- Markdown stickers applied
- Items donated or discarded
- DSD credits processed
Don’t wait until day’s end—details get lost.
Daily Close: 10-Minute Review
Before leaving each day:
- Total known losses by department
- Note unusual patterns (power outage? delivery issue?)
- Calculate daily shrink as percentage of sales
- Flag anything over $50 for investigation
End of Week: Your Baseline
By Friday, calculate:
- Total shrink dollars for the week
- Shrink as a percentage of weekly sales
- Department breakdown
- Primary causes
You should now answer: What’s our weekly shrink rate? Which department needs attention? What’s driving losses?
From Manual to Automated
While manual tracking establishes your baseline, FMS Track-ItTM automates this process—capturing markdowns, transfers, and known losses in real-time. The system integrates with your POS, eliminating manual logging while providing instant visibility into shrink patterns by department, shift, or day of week.
Your Action This Week
Start tracking today. One week of data reveals patterns you can’t see otherwise. Compare your numbers to the 3.0% industry average to identify opportunity.
Learn From Your Peers
Want to learn how other grocers are tracking shrink? The G.O.A.L.S. Share Group (Great Operations And Less Shrink) brings together VPs and Directors of Operations, Loss Prevention, and Asset Protection to share best practices on employee training, SOPs, and the latest technologies. Learn more about The G.O.A.L.S. Group here: https://fmssolutions.com/goals-share-group/
Next week: Spotting overordering red flags before they become shrink
