What was the result of Walmart's annual inventory audit regarding inventory shrinkage?

• A. Inventory shrinkage doubled year-over-year
• B. Inventory shrinkage increased by 90 percent
• C. Inventory shrinkage decreased by 90 percent
• D. There was no change in inventory shrinkage

Answer: (C)

Inventory shrinkage is the gap between what the books say you have and what you actually count in physical inventory, caused by theft, damage, miscounts, or supplier issues. An annual inventory audit measures that gap and how it changes year to year. The result here shows a dramatic improvement: shrinkage decreased by 90 percent, meaning the discrepancy was reduced to one-tenth of its previous level. This points to much stronger controls and loss-prevention efforts—better cycle counting, enhanced surveillance, and tighter vendor compliance—that together cut inventory losses substantially. The other options would imply worse performance or no change, but the audit indicates a major reduction in shrinkage.