The correct answer is d) Employee theft. Shrinkage in retail refers to the loss of inventory between point of manufacture and point of sale, typically caused by various factors.
How to explain
Employee theft is a significant contributor to increased shrink. It involves dishonest employees stealing merchandise, money, or supplies, which can lead to substantial losses for retailers.
Choices a, b, and c are incorrect as they do not directly contribute to increased shrink. High customer satisfaction, increased advertising efforts, and effective inventory management are positive aspects of retail operations that do not necessarily contribute to inventory shrinkage, unlike the negative impact of employee theft on a retailer's inventory and bottom line.
Which of the following can contribute to increased shrink?
a) High customer satisfaction
b) Increased advertising efforts
c) Effective inventory management
d) Employee theft