Retail Shrinkage in Singapore: 2-5% Loss = SGD 20K-50K/Year Per Store
Cosmetics store SGD 1M stock value. Physical count vs system: SGD 30K missing (3% shrinkage). Theft: SGD 18K. Spillage/breakage: SGD 8K. Unrecorded damage: SGD 4K. Impact: profit margin drops from 25% to 22% (SGD 30K cost). AskBiz daily inventory alerts: "Expected SGD 50K stock, actual SGD 49.8K. Investigate."
Why Retail Shrinkage Is Silent Profit Loss#
Most retailers don't track daily. Quarterly stock take: "System says SGD 1M stock, count finds SGD 970K. SGD 30K shrinkage. Spread across 3 months = SGD 10K/month loss nobody noticed." By then, too late to trace cause.
The Causes (Singapore Retail)#
(1) Staff theft: 30-40% of shrinkage. (2) Customer theft: 30-40%. (3) Operational error: 10-20% (wrong bin, data entry, unrecorded returns). (4) Damage/spillage: 10-20%. (5) Vendor short-shipment: 5-10%.
SGD 1M stock, 3% shrinkage = SGD 30K/year.
The Cost#
SGD 1M stock, 3% shrinkage = SGD 30K/year. Retail margin 25% = SGD 120K profit on SGD 1M stock. Shrinkage loss: 25% of profit. Miss this metric: business looks like 22% margin when actually 25%.
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AskBiz Daily Inventory Tracking#
Scans every receipt and issue. Real-time system stock vs expected. Daily alerts: "Expected SGD 100K stock (based on purchases and sales), actual: SGD 98.2K. Shrinkage rate 1.8% (normal 1-2%). Investigate unusual movement: Category X had SGD 5K inflow but not in sales."
- Cosmetics store SGD 1M stock value.
- Physical count vs system: SGD 30K missing (3% shrinkage).
- Theft: SGD 18K.
People also ask
What's an acceptable shrinkage rate?
Retail: 1-2%. Grocery: 2-3%. Cosmetics: 3-5% (higher due to testing/breakage).
How can I reduce shrinkage?
Regular counts, security measures, staff training, tighter access controls, mystery shoppers.
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Track Stock Shrinkage (Recover SGD 20K-50K/Year)
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