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How a small shop can stop losing stock

Most missing stock in a small shop isn't only theft. It's having no number to compare against. If you don't know how much you should have, you can't know how much went missing.

This article sums up a stock routine a small shop can actually keep, with no expensive system: one spreadsheet and the habit of recording.

1. Know what you should have on hand

Stock control comes down to one formula:

Expected stock = opening + received − soldRecord these three every day and the result becomes your baseline to compare with what you actually count.

If staff use items themselves, or stock spoils or is given away, record it in its own column such as "used/spoiled" and subtract it too. Don't mix it into sales, or you won't be able to tell why stock went missing.

2. Count in cycles and watch the difference

You don't need to count everything every day. Set the frequency by value and risk:

  • Expensive or easy-to-lose items: every day or every shift
  • Fast sellers: every week
  • Everything else: once a month

Compare each count with the expected figure. Small differences always happen, but a gap that repeats on the same item or on the same shift is the one to follow up.

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3. Set reorder points so you never run out

A reorder point is the level at which you order straight away. A simple way to set it:

Reorder point ≈ daily usage × days to deliver + safety stockExample: you use 5 bags a day, delivery takes 3 days and you keep 5 bags spare → reorder point = 5 × 3 + 5 = 20 bags

The sheet uses conditional formatting to turn the cell red when stock falls to the reorder point, so you see it without reading every number.

4. Reading the numbers: an example

ItemExpectedCountedDifferenceWhat to do
Coffee beans (kg)12120Fine
Fresh milk (cartons)3027−3Check for spoilage or unrecorded use
Packaged snacks4031−9Missing every week: check which shift and where they're shelved

5. Small habits that make the numbers trustworthy

  • Record deliveries as they arrive and check them against the delivery note
  • Have one person count and another record, if you can
  • Keep every count so you can see whether gaps are growing or shrinking
  • When there's a gap, find the cause before you change the number; never just adjust it to match
Summary
  • Record opening / received / sold every day
  • Count in cycles and watch for repeated gaps
  • Set reorder points and let the sheet warn you
Get the stock control sheet freeCalculates stock on hand automatically, turns red when an item runs low, with reorder points and stock value
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