"Every retailer needs to remember that ‘shrinkage' will occur. Things get broken (by staff and by customers), some items will probably be stolen, and human errors happen. You can be alert to try to minimize these occurrences, and be wise to try to compensate for them.

"Suggestions to combating shrinkage in your gift department:
1. Try to minimize:
a. shoplifting and theft by greeting each customer and making eye contact. Try to know where customers are in the store at all times. Keep more expensive items, like more expensive jewelry, in a case.
b. errors-Train staff to double-check themselves when doing things like counting back money, and entering information on the cash register and credit card machine.
2. Compensate for shrinkage by:
a. increasing margins, when possible, taking your mark-ups when you can
b. writing off losses at the end of the year
c. discounting or donating slightly damaged items."

Susan Lewis
Gift buyer
Logos Bookstore
Dallas

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