- Discrepancy between a firm's actual inventory and its recorded inventory due to theft, deterioration, loss, or clerical problems. Bloomberg Financial Dictionary
* * *shrinkage shrink‧age [ˈʆrɪŋkɪdʒ] noun1. [countable, uncountable] the act of shrinking, or the amount that something shrinks:
• There has been a shrinkage in wage growth, pension coverage, and health insurance coverage.2. [uncountable] COMMERCE when goods intended for sale are damaged, stolen by employees etc:
• The manager of the store is allowed only 1% shrinkage.
• Shrinkage — or theft — is a very real problem for industry.
* * *shrinkage UK US /ˈʃrɪŋkɪdʒ/ noun [U]► the process or amount by which something becomes smaller or less: »
Conservatives are not happy about the private sector's shrinkage and the public sector's expansion.shrinkage in sth »
A permanent shrinkage in supplies would severely damage today's oil-based economy.shrinkage of sth »
He expects employment to grow by 1.9% this year compared to a shrinkage of 0.4% last year.sales/deficit/brand shrinkage »
Two years of double-digit sales shrinkage have hurt the industry.► COMMERCE the loss of goods for sale because of damage, stealing, etc.: »
The retailer's stores lose about $1m a week from shrinkage.»
Financial and business terms. 2012.