Demography and disappearing merchandise: How older workforces influence retail shrinkage

Prior research on retail shrinkage has taken a largely individual‐level approach to theorizing about why it occurs, showing that older employees are less prone to theft and more vigilant in preventing customer shoplifting than younger personnel. However, given the influence of organizational contexts on organizational behavior, theorizing about shrinkage may be enhanced by the consideration of business‐unit level contextual variables. The present study addressed this concern by examining the relationship between store‐level age composition, whistle‐blowing (WB) climate, and shrinkage in 726 retail stores. Results indicated that the negative mean age–shrinkage relationship was stronger when there was less age diversity or a climate more supportive of WB. Moreover, the negative WB climate–shrinkage linkage was stronger when the mean age was higher. Copyright © 2011 John Wiley & Sons, Ltd.