An Assessment of the Impact of Retail Shrinkage on Sustainability and Profitability: A Case Study of a Zimbabwean Retailer

The main objective of the study was to evaluate the impact of retail shrinkage on the sustainability and profitability of a Zimbabwean retailer. This was done in order to come up with ways to improve sustainability and profitability of retailers due to the dwindling effect of shrinkage on profitability and future sustainability of the retailers. The research used a qualitative research design. The sample was taken from the employees of the retailer randomly. The findings of the research indicate that internal theft is a cause of retail shrinkage, inaccurate pricing, scanning and errors and inaccurate stock counts. The findings also indicate that the impact of shrinkage is a negative one on profitability and future sustainability of the retailers. The study recommended that the retailers should embrace technologies such as visual deterrents, POS and alarms. The retailers should conduct preventative audits and make use of performance related awards for management to instill the reduction of shrinkages amongst the employees.