How to Calculate Retail Shrinkage in Excel
In retail terms, shrinkage refers to a company's percent loss resulting from damage, product expiration and theft of unsold products. Retail shrinkage can happen anywhere along the production and sale chain, including at the factory, in transit or at the retail location. You can calculate retail shrinkage in Excel by dividing the value of goods lost to shrinkage by the total value of goods that are supposed to be in the inventory.
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1.
Run Microsoft Excel and open a new worksheet.
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2.
Type the total value of the goods that you are supposed to have in your inventory into cell A1.
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3.
Type the total value of the goods that is physically stocked in your inventory into cell A2.
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4.
Type the following formula into cell A3:
=(A1-A2)/A1
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5.
Press Enter. Excel calculates and displays the proportion of goods that have been lost due to retail shrinkage.
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Writer Bio
Dan Howard is a sports and fitness aficionado who holds a master's degree in psychology. Howard's postgraduate research on the brain and learning has appeared in several academic books and peer-reviewed psychology journals.