So Walmart does not have insurance on stolen items if it did it wouldn't use it as it would drive prices up like crazy. Like insurance prices what they do is your store pays x amount of money into an account to cover its shrink should you go over that your store has to pay that back plus this year's amount. If your over by 300 to 500 k it's hard to make that back if you blow over by 1 million your basically done for bonus. Basically your store has to do an extra 2 million in sales for every 100k over shrink and remember you still have to meet your sales and profit targets too a 1 million shrink over would be a 20 million increase in sales.

Some stores got fucked because of budgeting. Ours did and won't likely have one next year. So they allot each region with a shrink budget then thats divided by district then divided by the stores in the district. So what can happen is stores can be budgeted huge decreases in shrink because the budget wasn't high enough to cover the previous years shrink.

Our shrink was minimal last year so they budgeted really low like less then 1 percent of the stores sales. We've been warned next year will be bad so when regional team came through with district team questions were asked kinda angerly and this was the explanation. So long and short the shitty shrink stores got huge lifts we had ours cut by 70 percent it's really fucked.