This research study aimed to comprehensively evaluate the significant sources of inventory shrinkage at a Zambian Department Chain Store and to formulate strategies for its mitigation. Employing a mixed-methods approach, the study integrates data from security reports and structured open ended interview responses from various employees within the organization. The research specifically focuses on three objectives: identifying the sources of shrinkage, assessing its impact on the store both financially and non-financially, and developing mechanisms for its elimination or minimization. The findings reveal a multi-faceted problem with significant contributions from employee theft, shoplifting, administrative errors and vendor fraud. Financially, the store incurred a loss of over K35, 973.81 in a span of six months, highlighting the urgency of addressing the issue. Beyond the financial toll, the study also uncovers the adverse effects of shrinkage on employee morale and customer relations, adding layers of complexity to the problem. Given the multi-dimensional nature of the issue, the study proposes a phased, multi-faceted strategy tailored to different management levels within the organization. The study not only offers practical solutions for the Zambian Department Chain Store but also contributes to the academic discourse on retail shrinkage.