Shrinkage, to a retailer, is the loss of inventory due to THEFT, damage, or other causes. It is an important issue for retailers, as it can have a significant impact on their profits. The crossword solution for shrinkage, to a retailer, is THEFT, which is an act of taking something without permission or legal right. THEFT is one of the most common causes of shrinkage in retail stores, and it can be difficult to prevent.