In retail

Retail

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

, leakage occurs when members of a community spend money outside that community or when money spent inside that community is transferred outside the community. For example, crossing a border to buy goods forgoes the same purchase that could have been made inside the community. Many chain store

Chain store

Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...

s have high leakages rates due to the transferring of sales revenue

Revenue

In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....

 to a corporate headquarters.

In addition, in retail trade, leakage, or shrinkage

Shrinkage (accounting)

In financial accounting the term inventory shrinkage is the loss of products between point of manufacture or purchase from supplier and point of sale. The term shrink relates to the difference in the amount of margin or profit a retailer can obtain...

can also mean the loss of stock

Inventory

Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...

without payment, typically due to theft by employees or shoplifters.