What is Stock Shrinkage?
Shrinkage is the difference between the stock your records say you have and the stock you actually count. Sources: theft, damage, miscount, supplier shortage.
A real Kenyan example
Records say 1,000 units. Count says 960. Shrinkage = 40 units, or about 1% of sales.
Formula
Shrinkage % = Loss value ÷ Sales × 100
Why it matters
Untracked shrinkage corrodes gross margin silently. It is one of the top profit leaks in Kenyan retail.
How Veira helps
Veira flags every SKU whose recorded stock and sale flow disagree.
FAQs
Healthy rate?
Under 1% of sales is excellent, 1-2% is normal, above 2% needs intervention.
Top sources?
Staff theft, customer theft, supplier shortages, admin errors.
Cycle counts?
Weekly for fast-movers, monthly for the rest.
Is shrinkage tax-deductible?
Yes with proper documentation.
Does Veira detect it?
Yes, automatically.