What term is used to describe losses incurred by retailers due to theft?

The term that accurately describes losses incurred by retailers specifically due to theft is inventory shrinkage. This terminology encompasses not only theft but also other factors that can lead to a reduction in inventory. These factors might include shoplifting, employee theft, administrative errors, or vendor fraud. Inventory shrinkage quantifies the total loss of inventory value, making it a broad term that effectively captures the various ways a retailer can experience losses.

While "shoplifting" refers specifically to the act of stealing goods directly from a store and is a significant contributor to inventory shrinkage, it does not encompass other types of loss. Similarly, "retail theft" generally aligns with the concept of loss due to theft but lacks the depth that inventory shrinkage provides, as it does not address other losses caused by mismanagement or error. "Retail fraud" is a broader category that may include various deceptive practices but does not strictly refer to the loss of physical inventory.

Using the term inventory shrinkage allows retailers to analyze and address the various causes of loss more comprehensively, enabling better management practices to reduce such losses.