Abstract: A system and method for combatting shrinkage in the retail industry which has a computer system, a user interface, a payment acceptor, a receipt generator, a vending machine, an inventory reader, a receipt reader, and a vending machine controller. The inventory reader tracks inventory of the vending machine and communicates the inventory to the computer system, which in turn communicates the inventory to the user via the user interface. A user selects a product for purchase on the user interface and pays via the payment acceptor. The user is provided with a receipt, which is then taken to the receipt reader. Once the receipt reader verifies the receipt, the vending machine controller of the vending machine provides the purchased product to the user.