Wally doesn’t care.
Shrinkage losses are tax deductible.
We need to change that.
Oh, I didn’t know that.
Explains a lot about store policies that seem insane, to honest people.
Why? A business should be taxed on profits. Revenue less expenses. Theft is an expense like any other.
Having an item that cost Wally say $10 is worth $4 as a tax deduction. A tax deduction of $4 is not worth a loss of $10.
Wally will not gladly endure these loses.
Also, to let you know, it is almost impossible to determine the exact amount stolen because of the way things are done now. Most retail operations pay based on what they sold via scan. For example, a Campbell's soup can may be misread by the scanner and recorded as a candy bar because the store's database of scanned codes are incorrect; or the scanned codes do not work and the register operator records it as a general purchase. The store will only pay to Campbell's the amount they scan. All companies take a loss because nothing works perfectly every single time My company knows how many widgets are sent to every single store across the country. When a specific store has a high shrinkage, we will send someone to that store to investigate and often it is because of an incorrect code and sometimes it is because the code is not in the store's database because it is a new product.
So there is really no way to determine the actual amount stolen because technology and human error causes shrinkage.
“We need to change that.”
Why do “we” need to change that? Writing off pilferage is a common practice among all manufacturers and on down the supply chain to the retailer. Just as there is “Lost and Damaged” product due to shipment, handling, etc. there is pilferage among employees. So why do we need to change that?