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

Economic data showed an increase in industrial output and less shrinkage in durable goods orders than expected.

From The Wall Street Journal • Feb. 18, 2026

"Once an expansion or shrinkage exceeds the elastic limits, it will lead to the particle cracking."

From Science Daily • Dec. 29, 2025

There are several causes for the yield shrinkage, one being the big share price increases in recent years that pushed yields lower.

From Barron's • Oct. 16, 2025

The shrinkage in the raw state then is mechanical, and distinct from that which takes place in the oven under the influence of heat.

From British Manufacturing Industries Pottery, Glass and Silicates, Furniture and Woodwork. by Arnoux, L.

Related Words

• contraction
• depreciation
• diminution
• reduction
• shrinking