shrinkage

American  

[shring-kij] / ˈʃrɪŋ kɪdʒ /

noun

1. the act or fact of shrinking.

2. the amount or degree of shrinking.

3. reduction or depreciation in quantity, value, etc.

4. contraction of a fabric in finishing or washing.

5. the difference between the original weight of livestock and that after it has been prepared for marketing.

6. Commerce. loss of merchandise through breakage, pilferage, shoplifting, etc.

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shrinkage British  

/ ˈʃrɪŋkɪdʒ /

noun

1. the act or fact of shrinking

2. the amount by which anything decreases in size, value, weight, etc

3. the loss in body weight during shipment and preparation of livestock for marketing as meat

4. the loss of merchandise in a retail store through theft or damage

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Etymology

Origin of shrinkage

First recorded in 1790–1800; shrink + -age

Explanation

When something becomes smaller than it was before, that's shrinkage. You can see shrinkage in action when you accidentally put your favorite wool sweater in the dryer! The process of shrinking, or the amount that something has shrunk, is shrinkage. You might notice the shrinkage of your hand-knit socks when you try to put them on your feet, or read about the shrinkage of the polar ice caps in school. Another meaning of this word is "loss of inventory due to theft or shoplifting." A store's shrinkage rate sometimes improves after they install security cameras.

Example Sentences

The shrinkage follows lackluster economic performance in 2025, which plummeted the company’s shares by 25% in February.

From Los Angeles Times • Mar. 30, 2026

The sector’s shrinkage reflects years of yo-yo profitability and of returning gobs of cash to shareholders because companies lacked good reinvestment opportunities.

From The Wall Street Journal • Mar. 12, 2026

Despite potential equity valuation shrinkage for software firms, Golub anticipates they will continue to repay lenders.

From Barron's • Feb. 6, 2026

This suggests that once brain shrinkage passes a certain level, its impact on memory increases more rapidly instead of progressing at a steady pace.

From Science Daily • Jan. 14, 2026

The shrinkage is greater on the outside than near the heart of the tree; thus if a log be cut into four quarters it will shrink as in Fig.

From Modern Machine-Shop Practice, Volumes I and II by Rose, Joshua

Related Words

• contraction
• depreciation
• diminution
• reduction
• shrinking