Shrink Anomaly Detector

Identify stores with unusual loss patterns

Retail shrink erodes margins silently.

Shrink rate threshold: Store shrink exceeds a defined percentage
Peer deviation: Shrink rate exceeds 1.5 standard deviations above the district average
Store shrink summary with current rate, dollar amount, and trend
Shrink breakdown by category showing top-contributing departments
Request a DemoSee How It Works

Shrink Anomaly Detected

Store #147 • 2.3x peer average

High Loss
Shrink Rate
4.2%vs 1.8% peer
Est. Loss
$127K
Variance
+2.4%
Category Impact
3
High-Shrink Categories
Electronics6.8% shrink
Cosmetics5.2% shrink
Apparel3.9% shrink
Investigation Focus
Camera reviewStaffing auditInventory count

Built for operations teams
who demand total inventory control

Retail shrink erodes margins silently. By the time annual inventory counts reveal the damage, months of losses have accumulated.

Loss Prevention Managers

Shrink reduction & investigations

Operations Directors

Strategic oversight & escalation

Store Managers

Store-level execution

Inventory Analysts

Stock accuracy & optimization

From alert to action in minutes

The objective of this agent is to reduce unknown loss through early anomaly detection.

Step 1

The Trigger

You define when the agent should activate. When conditions are met, it starts working automatically.

  • Shrink rate threshold: Store shrink exceeds a defined percentage (e.g., >2.5%)
  • Peer deviation: Shrink rate exceeds 1.5 standard deviations above the district average
  • Historical spike: Month-over-month shrink increases by more than 30%
Step 2

360° View

The agent opens a tailored dashboard consolidating data from all your systems.

  • Store shrink summary with current rate, dollar amount, and trend
  • Shrink breakdown by category showing top-contributing departments
  • Historical trend charting 12-24 months with anomaly highlighting
Step 3

Automated Analysis

The agent follows a structured analysis flow, combining checks with exploratory reasoning.

  • Anomaly classification: Determines whether the deviation is a sudden spike, gradual trend, or category-specific issue.
  • Category drill-down: Identifies which categories and SKUs account for excess shrink, comparing to chain-wide norms.
  • Timing pattern analysis: Examines whether shrink concentrates on specific days or shifts, flagging patterns suggesting internal theft, ORC, or process breakdowns.
Step 4

Actionable Output

After analysis, the agent creates a human-friendly report with everything your team needs.

  • Alert summary: Overview of the anomaly and estimated shrink at risk
  • Severity classification: Priority tier with scoring rationale
  • Shrink breakdown: Category and SKU detail
Step 5

Delivery

Reports are sent automatically via email or accessed directly in Veezoo.

Key benefits for operations teams

Concrete, measurable value for your team from day one

Lower Loss

Faster anomaly detection

Before: shrink surfaced at annual counts. Now: deviations flagged within days, enabling earlier intervention.

Consistent

Prioritized audit resources

Focus LP visits on highest-impact anomalies rather than uniform rotation.

Key Benefit

Category-specific insights

Understand which categories, SKUs, and timeframes require attention.

Up and runningin production in weeks

To deploy this Agent, you connect Veezoo to your existing Data Warehouse, typically containing data from:

Inventory Management System: Perpetual inventory, shrink rates, cycle count results
Point of Sale (POS): Transaction data, voids, refunds, discount exceptions
Workforce Management: Staffing schedules, open positions, turnover
Loss Prevention Platform: Incident reports, EBD alerts, ORC case data
Inventory
POS
Variance
Location
Store
Exception

Ready to explore Shrink Anomaly Detector?

Fully customizable to your workflows, data sources, and business requirements.

Try for freeBook a call

Typical initial implementation in weeks, not months.