PRESENTED BY :

HARSHA TAINWALA
 Future Group is India’s leading
business group that caters to the
entire Indian consumption space led
by Mr Kishore Biryani incorporated in
1987 Headquarters in Mumbai
Future Group operates through six
verticals:

 Future Retail
 Future Capital
 Future Brands
 Future Space
 Future Media
 Future Logistics
Objective of the Research
The project is mostly related to reduce the shrinkage,
and damage and defects (DAD) in the Big Bazaar
stores. Following are the objectives of the project –

 1. To understand the DAD and shrinkage.

 2. Analyzed shrinkage and DAD data of Big
Bazaar stores.
 3. Identify the root causes of shrinkage and DAD.
 4. Suggestion to reduce the shrinkage and DAD.
 Shrinkage is the loss of inventory. “Shrinkage” or “Shrink” is, widely
used in accounting. It is the difference between the book / financial
values (unit and cost of good) minus the physical count value. Inventory
Shrink is largely due to theft from stores; a variety of process errors,
accounting lapses, pricing mistakes, and improper inventory
management also contribute to such losses.

Types of shrinkage:

Usually, shrinkage is categorized as-

• Accounting shrinkage- it occurs due to variation in system quantity and

physical or floor quantity. This can be because of wrong inward, false
entry or counting error.
• Customer/employee theft- it occurs due to shoplifting and employee
theft.
 Employee theft –Employee theft from a retail store is a term used when
an employee steals merchandise. Employee theft can occur just like
shoplifting by concealing merchandise in purse, pocket from the store.

 Shoplifting-Customer thefts occur through concealment altering or

swapping price tag or transfer from one container to another

 Vendor fraud –This usually occurs when outside vendors sends

delivery of material into the store

 Cashier error –cashier error may also lead to shrinkage. For e.g. –while
Wrapping the merchandise cashier does do billing of merchandise
because in hurry he forgets one or two
 Employee dissatisfaction and irresponsible
behaviour.
 Improper handling of electronics products
 Specialized person for the demonstration. For
example, it is observed that the person who is
assigned to one department was giving
demonstration of products from alien department
to the customer and mean while damaged the
product.
 Improper warehouse keeping.
 Technical issues in electronics items, especially in
Koryo Electronics which is the home brand of
Future Retail Ltd
 Be Clear About Your Theft Policies
 Core areas to reduce shrinkage:
 1. Customer
 2. Employees
 3. Warehouse
 4. Emergency Response Plan
 Size of the warehouse should be increased.
 Security staffs should be changed weekly in
the warehouse
 Not all employees/respondents are
comfortable in sharing information.
 Store manager may be biased towards store
employees.
 Manual errors during data entry and stock
count.
 Due to work load respondent may not provide
in depth and accurate information
 The highest shrinkage with respect to
amount/price is occurred in the fashion category
 People prefer to shoplift luxury items or the items
which have high maximum retail price (MRF)
 For damage and defects, generally it occurs at
manufacturing end (especially for fashion
category), warehouse level (due to improper
handling, over stacking of boxes or cartons in
warehouse) and at store level (when customer try
to use garments in trial room, taking
demonstration of electronics items).