Management Communication And Cohesion Lead To Stronger Teams

February 27, 2018 by Leave a Comment

 A unified leadership team for any business can be a catalyst for driving great results. When managers are all communicating with each other, sharing information and giving honest feedback an entire team benefits. Managers in those environments tend to see the big picture and can assist a peer in another department in their absence. As the staff members see this cohesion they understand that they can’t get one over on a supervisor or pit one against another. A management team that works well together can prevent situations where an employee may lie and not get caught or manipulate managers by playing what I call the “Mom vs. Dad” card.

Working in a library, I see student workers trying to manipulate one or two “nice” staff members on a somewhat regular basis. The students may not see what they are doing as lying or being dishonest, they just know that there are certain supervisors who will probably say “Yes” to almost any request. The request may be to leave early or they want to call out of work for silly reasons. I had one employee who wanted to leave early because her pet fish was sick, even though she had spent one hour of her two-hour shift at work when she made the request. Now seriously, was she going to take this fish to a veterinarian? She chose the wrong supervisor to approach because the supervisor came to me and told me of the request and asked me for my opinion. While I gave the student the option to stay she was reminded that requests for leaving early impacted hiring decisions for the next semester. She stayed for her next hour.

In another situation, I had to have a conversation with a worker over her behavior with co-workers and supervisors. I made it clear the behavior would have to change and steps on how to improve. I did let her know I wanted her to be successful but I would not allow the behavior to continue if she was going to work for us. The employee came back later and attempted to give her resignation and turn in her equipment to one of our nicer staff members. The staff member was super sweet and was going to let it go with a, “I’m sorry to see you go.” The supervisor who was with me when I spoke with the employee walked in on the conversation and the mood changed. The employee tried to lie about the conversation and what was said to her. This supervisor cut off her excuses and reminded her what was really said during our talk. The employee left in a huff but the blame game was shut down. When the first supervisor was asked why she was just going to let the employee make her complaints and leave the supervisor said she liked to give people the benefit of the doubt. It’s no wonder why employees like to go to her to get what they want.

While we have a great team of supervisors, I do have problems with some who do not like to be the “bad guy”. A management team needs to share the burden of holding employees accountable for their actions. It is unfair to expect one or two supervisors to conduct discussions involving poor performance or behavior problems and/or administer corrective actions. These supervisors are the ones who appear to be the mean ones to the team members and acquire an undeserved reputation as being “unfair” or “harsh”. The best management teams are those in which everyone participates in the corrective action process. They document talks with employees and record them in some form of record keeping so when review time comes around those notes play a part in the scoring. These teams also have supervisors taking partners with each other making it harder for one person to be pitted against another.

There will always be those employees who try to get away with something whether it is not working as hard as their co-workers to outright lying to a supervisor. Those management teams that communicate amongst themselves and share the responsibility for administering correction or discipline when necessary will find it easier to identify and keep the best workers. Build a great store team by creating a cohesive management team that communicates with each other and shares the responsibilities of leadership.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Preventing Shoplifting In Your Store

February 8, 2018 by Leave a Comment

A Target or Walmart store can and are able to fight shoplifting in their stores every day of the year.  The expense associated with shoplifting has for many years been known to be passed down to the consumer, and the increase in prices has been an expense that gradually has affected consumers around the globe.

In the United States retail shrink which includes shoplifting, employee theft, administrative errors and vendor fraud cost the US retailers close to $50 billion in 2016 alone. More than 36% of shrink was due to shoplifting, and 30% was due to employee theft.

Many local businesses across the United States have taken different approaches to prevent shoplifting.  From investing in Facial recognition software to shoplifting prevention training, many businesses have taken different approaches to the prevention of this crime.  But, according to the National Retail Federation (NRF) even as the average inventory shrink rate has increased by close to 1.5% the budgets for loss prevention personnel has decreased or remained flat.

What are some of the steps local businesses have taken to prevent shoplifting?

Signage – A Spokane Washington local business has signage that lets you know from the time you enter their store that they have Video surveillance in use and they will prosecute you in case of shoplifting, and they also have a policy of taking your name when you enter their fitting rooms. If you shoplift, they already have your name.

Customer Service -has been proven to be one of the major loss prevention strategies businesses have adopted that can also benefit them in the long run. Be aware of the difference between offering great customer service and stalking a customer.

Training –  Trained personnel cannot only help you prevent shoplifting but can prevent incidents from getting out of hand.  Knowing the laws, regulation, and the process when a shoplifting incident occurs can save lives and prevent lawsuits.

Facial recognition software – If you are using facial recognition software in your stores, caution has to be taken into consideration.  Using facial recognition improperly can lead to too many problems and too few rewards.  Properly trained personnel are one important aspect of using this kind of security measure.

There is probably a fine line between great customer service and making your customer feel like a criminal.  Losing customers because your employees follow them and are constantly asking them if they need help or making them uncomfortable is not a good solution.  If you are also targeting people for no apparent reason, the probability that the bad experience will find an outlet that will carry bad publicity for your business is very likely.

Let us know if some of the above methods you are using seem to be working for you.

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , ,

Sweethearts In February Are wonderful, Sweethearting Deals Between Employees And Their Friends Are Not

January 29, 2018 by Leave a Comment

It is the time of year again when Cupid starts shooting his arrows and couples fall in love. What is more romantic than the marriage proposal in a restaurant and a ring presented in a glass of champagne? How about sweethearts strolling along the beach under a moonlit night? Is there anything more touching than the couple that has been married for a very long time and they still walk hand in hand wherever they go? Sometimes love makes us do something dumb to try to impress the apple of our eye. In one instance, a prisoner escaped from jail because he was worried how his wife might react to all the time he had been spending in jail. In another instance, a man robbed three waffle house restaurants and a 4th business in order to pay off his girlfriend’s probation fees (both from mentalfloss.com, “11 Strange Things Done in the Name of Love,” by Jennifer M. Wood, Feb 14, 2014). Perhaps it is the purchase of a ring we can’t afford but we are determined to show our love and commitment to the person we are enamored with. Love is fine and we may even excuse behaviors we might normally consider silly when two people are in love. What is not acceptable is when love and friendship turn into “Sweethearting” deals in a retail business.

 Sweethearting is a theft or fraud activity that transpires between two or more people who know each other. At least one is an employee who provides special deals to his or her friend(s) and sometimes co-workers. The transgressions often start out small. They may involve giving a small discount on a drink or snack. Maybe it is “accidentally on purpose” overlooking an item while scanning merchandise through a register. More often than not what starts off as a little gift or friendly gesture evolves into a big problem. That boyfriend or girlfriend starts coming to the store more frequently and checking out in their friend’s line. What may have started out as the occasional extra candy bar in the bag or a large drink at the snack bar for the price of a small drink quickly turns into outright passing and theft.

If the activity is going to take place at the register, the cashier may send a text message to the friend alerting them that they are on a register and will look for them to come in. There are a variety of ways the two can rip-off the store. The cashier can ring merchandise up and discount it so it appears the transaction is legitimate. The employee can fail to ring up merchandise and bag it which becomes a passing situation. There is also the tendering of money that can result in cash shortage. The friend hands over a cash payment and the cashier gives too much change to the patron. This is a difficult type of theft to see transpire because money does change hands.

Sweethearting also takes place when an employee intentionally looks the other way when her friend is in the store shoplifting.  This does not require the employee to take an active role in the crime. All that is required is for the employee to make a point of turning a blind eye to the theft as it is being perpetrated. There are times when the two parties plan out when the friend will come to the store and steal. This also means the employee is now an active participant and aiding in the commission of the crime which is much more serious on the part of the staff member.

Encourage your team to be friendly and courteous. Go above and beyond in the service you offer to customers. Love your shoppers, just make sure your employees aren’t being sweethearts in the process.

 

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Employee Training And Shoplifting

January 3, 2018 by Leave a Comment

After the holidays, you probably have a whole array of chores you must do to decide whether you had a good or bad year.  The holidays are behind us, and if you seem eager to have new strategies to put in place, it is not uncommon, and you are not alone.  New year resolutions are abundant during this time of year, and even though many of them are related to exercise, eating and health issues, yours can be directed completely to the business side of your life.

For a retail business owner, employee training is always an important issue they should not neglect.  There are many aspects of every business that owners must take care of to ensure a well-run business and employee training is one of those important issues they must keep in mind.

Employee training has been shown to help businesses keep more of the profits, and to reduce the shoplifting happening at their stores.  Paying for employee training is one way of investing in your business, and seeing the return of investment right away.

One of the many benefits of employee training is the certainty your employees will know what to do in case a shoplifting incident occurs.  From the way they approach the suspected shoplifter, to the way they apprehend them, their training can be the difference between a lawsuit for your store or not.  The guidelines they are supposed to follow are clear for trained employees when dealing with a difficult situation, and a dangerous situation is clearly assessed and dealt with before lives are endangered.

Employee training can also be a deterrent to shoplifters.  Shoplifters will be less eager to enter your place of business if they know they will be approached and even questioned or apprehended if they do something illegal.  Making your business a place where shoplifting is hard can get around to other shoplifters.  Sharing the names of “easy” places to shoplift is well known among them, make yours the “hard” place shoplifters are unwilling to try.

Trained employees know how shoplifters behave and how they try to get away with stolen merchandise.  They know which items may be a target for shoplifters, and which ones if the opportunity presents itself will be stolen without a second thought.

 

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , ,

Store Safety Impacts Profits: Keep Your Store Safe During The Winter Months

January 2, 2018 by Leave a Comment

Accidents can be costly to businesses. In fact, according to the OSHA website, “It has been estimated that employers pay almost $1 billion dollars a week for direct workers’ compensation costs alone. Direct costs include workers’ compensation payments, medical expenses and costs for legal services.”

This does not take into consideration expenditures on general liability claims made by customers against businesses for accidents. The impact of a customer claim can be significant as well and according to thehartford.com “The Hartford Reports: More Than 40% Of Small Businesses Will Experience A Claim In The Next 10 Years,” March 30, 2015, the average cost of a customer injury or damage claim is $30,000 while a customer slip and fall incident is $20,000. A struck by object claim not identified as being specific to a customer or employee is listed at an average cost of $10,000. Consider then that the risk of these accidents taking place during the winter months increases significantly. What steps can you take to reduce the possibility you may have to pay out on a claim, especially during the winter months?

Slips and Falls

Slips and falls are not uncommon all year round, however, winter increases the chances of a slip on icy sidewalks and parking lots. Additionally, people will track ice and snow into the building leaving puddles of water that contribute to slip accidents. It is necessary for store employees to be diligent in placing wet floor signs near entrances and drying those areas too. Allowing standing water to remain because “people just keep tracking it in” is not an excuse that will hold water in an accident settlement case (pun intended). It is worth investing in wet area or all weather mats for the front doors to aid in the drying of shoes as customers enter the building. Have umbrella bags available for wet umbrellas. Bure sure to have deicers and anti-icers on hand for unexpected snow and ice storms to help keep sidewalks and curbs safe for patrons and employees. Stores located in traditionally warmer climates must be even more diligent because ice and snow are not as common; finding shovels and proper equipment when that rare snow or ice storm strikes can be a difficult task. Hardware stores run out of necessary items quickly as people without the tools come in at the sudden threat of storms.

Strains and Sprains

You or one of your staff may go outside to shovel snow from your sidewalks. Be careful! Not only is there the danger of being exposed to the cold too long, there is also a chance of a strain injury resulting from the shoveling of snow and ice. In an article in webmd.com titled, “Shoveling Snow Injures Thousands Each Year,” Jan 20, 2011, by Kelli Miller, the author points out that shoveling sends on average 11,000 adults and children to the hospital each year. She continues in her article, “The American Journal of Emergency Medicine details the most common health hazards associated with shoveling snow. Snow shoveling can lead to bad backs, broken bones, head injuries and even deadly heart problems.” Carefully watch those you may send out to shovel and rotate them in and out. Look for signs of excessive stress or pain and if necessary contact a local EMS station.

Parking Lots

Ensure your employees are safe if you send them outside to collect shopping carts or clear snow from parking spaces. Have orange or yellow reflective safety vests on hand and require those working outside to wear them. Moving vehicles in a parking lot may not stop quickly enough on the icy pavement if they don’t see the employee in time. The safety vest provides additional visibility to help alert drivers. While it should go without saying make sure weather appropriate clothing such as jackets, gloves and even scarfs are available for employees to help them avoid frostbite or other cold-weather ailments.

Struck-by’s

Don’t overlook the risk of ice falling from a rooftop. Too much weight from accumulated snow and ice or a slight increase in temperatures may result in ice and snow sliding off an overhang or roof. Be sure to monitor for such hazards and take proactive measures to clear potential problems before they result in an injury.

Accidents can happen anytime but winter offers unique challenges. Be pro-active and make sure you and your managers are doing all you can to make your employees and customers safe when they visit the store to work or shop.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Now that the holidays are over does that mean theft is too?

January 2, 2018 by Leave a Comment

 Whew! You made it through the holidays and hopefully, you were successful in deterring shoplifters and survived the fraudulent return attempts but does that mean you can rest on your laurels? Unfortunately, the answer is “No”. Criminals do not take a break because you do. As a matter of fact, you could find that this is a prime time for criminal activity to increase. Why would that be? It is during these next few weeks and months that traditionally retail owners and managers begin to tighten up payroll. They release their seasonal employees and reduce the hours budgeted to the various work centers. This leads to several theft concerns:

  • If given too much advance notice that the end of their employment is imminent there are workers that may get angry and justify stealing because of a perceived injustice. This person may think they worked hard enough to earn a permanent spot on the team or assumed they would be retained based on what they thought they were told when hired. Some managers feel a bit guilty for having to let seasonal employees go and feel an obligation to give a significant amount of advance notice so the person can look for new work. The best way to avoid this situation is to give a seasonal employee a date they will work up to and no later than during the interview process. By doing so the employer can give a reminder a week out that the last day is approaching. This gives the worker time to start looking for other employment and does not give too much lead-up time for them to start stealing if they may be so inclined.
  • As sales decline after the holiday season, managers and owners have to make budget decisions on payroll expenditures. It is not reasonable to spend the same amount of money on sales floor coverage with reduced customer counts. Where you had three or four cashiers during the last few months to ensure customers were served quickly you may now have only one cashier. The staff members that were getting 32 hours a week may be down to 25 hours a week. If the employee is dependent on that income to make ends meet and their hours are cut they may decide that stealing is a way to make up for what they have lost. 
  • When seasonal employees are released and hours reduced to cut back on payroll expenses, sales floor coverage starts to wane. This means there are fewer people to provide customer service that is one of the critical components in theft deterrence. Shoplifters know when there are fewer employees present and find it easier to avoid those few workers that are on the floor. Remember that one of the three things needed to shoplift is the opportunity and with less chance at discovery, more opportunities to steal present themselves.
  • There are operational functions that may suffer due to a reduction of payroll hours. Specifically, merchandise protection strategies including electronic article surveillance tagging of merchandise may not be as thorough. As an example, if a freight pusher is responsible for tagging products with retail anti-theft devices but they are struggling just to get freight stocked on the floor in the allotted period tagging could be a secondary issue. The focus may be on filling the floor in order to sell rather than protecting it to prevent theft.

Criminals are not going to take a vacation after the holidays. They will look for stores that lower their defenses and then take advantage of them. Be on guard as you come out of the busy season and things seem to slow down. Be wise in how you reduce seasonal employee staff and do what you can to encourage the people you are keeping. Make plans to identify and address potential problems that may arise from those decisions. Strategic planning and follow-up can minimize the chances thieves will try to target your store.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Bad Santa (this one is on the naughty list)

November 29, 2017 by Leave a Comment

Could it be that Santa Claus is not always a jolly, giving man? Oh yeah. Take a look at this Santa. He (or I guess it could be a she) is out for a little cheer for…. himself. Regardless who they are, customers need to be watched. In this case, the store let their guard down because of the costume. Shoplifters use deception and costumes to steal.

In this case, the Santa costume allows plenty of room to hide merchandise. Shoplifters will make or modify clothing to become a shoplifting tool. We call these “booster” items. Booster coats, dresses, skirts, pants and more. I have even seen booster “bloomers”. They are worn under a loose fitting skirt or dress. The shoplifter drops a merchandise item through what looks like a pocket in the outer garment and into the bloomers which are secured at the knee. A lot of merchandise can be concealed that way. We once caught a woman with four cordless drills including batteries concealed that way.

Other costumes include religious clothing. How about a Nun? I have caught one of those. It was a difficult “habit” for her to break. Even someone who dresses as a member of the Armed Forces, a security officer, repairman, phone company technician with tools and a toolbox. A shoplifting team may use a person like this to distract your attention or create a scene while the others steal.

Another booster item could be a false bottom gift-wrapped box. Your merchandise Items go in the bottom with a trap door. Shopping bags are yet another tool. Especially ones from your store. Our inclination is that whatever is in there, was already purchased. Or they put stolen merchandise under merchandise that they did purchase.

The general rule of thumb is that shoplifters want to blend in with your regular customer look. Take a look at this video of a customer that “blended in” but was bottomless:

If your average customer wears a suit then that is the way the shoplifter will dress. If they wear shorts and flip-flops, then that is their targeted look. But a costume that portrays confidence such as uniforms, religion, public servant… is like hiding in plain sight. We dismiss that person “because an XXX would not be stealing from me”.

If a costume makes people uncomfortable, they would tend to avoid that person. Someone dressed in an outrageous way such as a stripper (okay, not too many places to hide something), odd clothing combinations and colors or some of what we can find at the People of Walmart website probably qualify.

Of course, no story on shoplifting costumes would be complete without a creepy clown. So if I have not weirded you out too much, then happy hunting!

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Proper Preparation For Holiday Gift Returns Reduces Fraud

November 29, 2017 by Leave a Comment

The end of the holiday gift buying season ushers in the inevitable holiday gift return season. Clothes that don’t fit, ugly holiday sweaters no one really wanted, toys that were too old for a young child or too young for the older child all lead to returns, exchanges, and refunds. For those who have been in retail for any length of time, we know that many of these items will be returned without tags or a receipt and not even a gift receipt. It also means people will try to return merchandise to your store that was never even purchased there, despite what the customer in front of you says. This means it is prime time for those who engage in return fraud. There are so many people making returns that trying to separate legitimate refunds and exchanges from the fraudulent ones is difficult. There are steps you can take to minimize the number of fraudulent returns you accept.

  • Ensure you have your store return policy clearly posted at the points of sale all year round but make it especially prominent during November and December.
  • Encourage cashiers to remind customers of the store return policy at the time of purchase. If there is a time limit to how long a customer has to refund an item that should be stated.
  • While some stores have gone to print as well as emailed receipts if your store has instituted this recommend that patrons use BOTH options. This means that even if a receipt is lost it should still be in their email.
  • Open packages to see what is inside even when shrink-wrapped. The really good criminals will know how to seal a rock inside a box to make it look normal.
  • Require a government-issued I.D. card with no-receipt refunds. It may sound extreme but those persons who engage in fraud are less likely to do so if they have to produce a picture ID.
  • For no-receipt refunds require an exchange for a like item. Criminals have gotten to the point where they are willing to accept in-store credits what they don’t want is the merchandise. Exchanging for a like item defeats their purpose.
  • Be ready for the returns. If possible have one return line for receipted returns get customers through more quickly. Have a second line for no receipt refunds/exchanges that may take more time to process. You will make life easier for the customers with receipts and you give cashiers the opportunity to be more thorough with no receipt returns without feeling pressured to hurry through the transactions.
  • Don’t leave a regular employee alone with a line of customers, have a manager at the return desk or register too. Most customers will be understanding of wait times and return policies but some won’t be and hourly employees shouldn’t have to put up with the added stress caused by upset “no-receipt” returners. Fraudulent returners also look for employees who appear to be young or relatively new. Having a manager up front can discourage some of these people.

Being aware in advance that fraudulent returns will be attempted helps prepare managers for the situations when they arise.

It should also be pointed out that gifts are not the only items that will be returned fraudulently after the holidays. A lesser-known practice called wardrobing will also be conducted by dishonest customers. Store owners should be aware that these will be the Christmas or New Year’s Eve partygoers that don’t want to rent an outfit or buy it outright. The problem with this group is they are returning their merchandise with the tags intact and with a proper receipt. Unless they are returning the items outside of a specified policy it can be very hard to put a stop to this activity. An example might be if a store has a 30-day return policy and a customer attempts a return on day 31. This would be a clear reason to turn down the refund. The only sure way to prevent this fraud is for a store to use devices known as wardrobing tags on clothes to keep it from occurring. Loss Prevention Systems Inc. can provide more information on this type of fraud for store owners or managers interested in deterring the activity.

Not all no-receipt refunds during the holidays are fraudulent but a significant number are and it hurts a store’s profit margin. Make preparations now and put control measures in place that will make it hard for criminals attempting to cheat your business.

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,

Make Preparations For Your End Of The Year Wrap Up

November 29, 2017 by Leave a Comment

December is the month when retailers are focused on driving those end of the year sales. We push as much merchandise as possible out of the stockrooms to fill the floors. Empty salesfloor spaces should be “no-no’s” during this time of the year. We re-merchandise our fixtures to get gift ideas in front of our customers. We also take steps to increase impulse buys by filling check lanes with snacks, batteries, magazines, gift cards, etc. Managers should also be looking at last year sales information to plan schedules around peak times of the day in order to avoid long lines at the registers. While all of this is important it is just as important to start planning for your end of the year wrap up.

Much of December into January is the same as the rest of the year but there are some differences that need to be considered. It is the end of the year and that means you will have to consider inventory will be coming up in the next few months (depending on when you take inventory of course).  Even if you take your inventory later in the year you should still be thinking about it and starting to prepare now. As your team is pushing merchandise out of the stockroom it should be emptying out. It is the perfect time to look for merchandise that has fallen from hangers or dropped into a nook or cranny that is usually hard to see. Scouring the building for merchandise that has been hidden away is another step to be taken. Sometimes customers will hide merchandise intending to come back for it later or employees may do so to avoid re-stocking it. Merchandise may also be under base decks or fall behind registers and regardless of how it gets there, it will result in shortage if not accounted for at inventory time. 

You may have hired seasonal employees for the holidays. You will need to start making decisions on who you will release and who you may decide to keep on your staff. If you have other managers working for you seek their input. It is not uncommon for us to have a skewed view of what an employee’s work and productivity may be. You may see someone occasionally and think they are performing well. You then speak with their immediate supervisor and find out this employee is really a problem to their work center. Decisions must be made as to when cuts will be made and offers of permanent employment provided. Whether you like the employee or not it is only fair to give them time to start looking for other work or have the knowledge they won’t need to do so.

Review any vendor supplied items your store may carry. Are vendors maintaining their products and filling their allocated space? Conduct spot audits of vendor merchandise and make sure if there are products soon to expire they are on the front of the shelf. Be diligent that you are receiving the appropriate credits for merchandise the vendor is removing from your store. You or a delegated manager should look at vendor credits to be sure they are being given to you in a timely manner now and through the entire year.

The end of the year is also the time to look at building maintenance issues. Parking lot lighting, exterior lights, fire, and burglary alarm tests should have all been done at the start of the 4th quarter. Now is the time to look for facility problems, are restroom sinks and toilets operating correctly? Are there any roof leaks that have not been previously reported? Are fitting room doors opening, closing and locking? Some repairs may be a landlord’s responsibility to cover, be sure those are reported and taken care of.

Finally, as you wrap up your year take time to celebrate your wins with your team and also take a look at opportunities for improvement. Make it a group effort and give everyone a chance to comment on what they thought went well and what could have gone better. Getting everyone’s insight can be enlightening and provide ideas for making the coming year even better than this year and that is how businesses stay successful.

     

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

New Year’s Resolution’s To Improve Shortage This Year                                              

November 29, 2017 by Leave a Comment

A New Year is just around the corner and once again resolutions are going to be made and many of those will fall by the wayside. Why does that happen? Are goals too big to achieve? Sometimes we all start off with good intentions and we just get caught up in our normal routines and we can’t seem to focus on what it was we wanted to get done. There may be a manager out there who resolves that this is the year they will meet quarterly with each employee and discuss performance. They might do well the first quarter but then as the demands of the job take up more and more time something gives and it was the meetings. I recall one of my resolutions was to be more organized at work. I had a filing system, it was called my desktop and I knew where everything was at. I would make my resolution, create a filing system and you guessed it by the end of January I was back to my old habits. My intentions were good I just wouldn’t stay focused on it and made excuses.

      Retail shortage can be a problem for a store and if not addressed it gets worse and severely impacts the profitability of a business. Resolving to fix shortage is admirable but it requires a knowledge of where the shortage is taking place and methods that can improve problem areas. Below are some tips that can help with your resolution:

  • Know what causes the shortage. There are generally four areas that will impact shortage. Shoplifting, Employee Theft, Vendor Shortage and Administrative Errors. According to the 2014-2015 Global Retail Theft Barometer, Dishonest employees accounted for 45% of shortage, Shoplifters 36%, Vendor/Supplier Fraud 6% and Administrative and Non-Crime Loss 13% (pg. 53).
  • Rather than try to fix all areas of shortage, pick one that will give you the most bang for the buck. For example, if you were to focus on preventing shoplifting you could probably reduce your losses by almost one-third!
  • Once you decide what you want to focus on, find experts who will be happy to assist you. Go to a resource that has people experienced in the field of shortage reduction such as Loss Prevention Systems Inc. and look at their blogs and media pages and resource information. Contact them for help.
  • Educate yourself and your managers on shoplifting and employee theft. Find out how to identify and prevent both (combined this is almost 80% of your shortage). Schedule a training seminar with experts from Loss Prevention Systems Inc. who will give you the information to make your business successful. There are a number of training sessions they provide and you can find the one(s) that will be most effective at this time. You may even consider partnering with other retailers in your area to hold a group session.
  • Invest in a retail anti-theft system that will have an immediate impact on employee theft, shoplifting, AND non-crime loss. You can still focus on that one area of shortage but benefit from the impact it can have on preventing other losses.
  • Create an action plan for the area you decide to focus on. It doesn’t need to be big but it does need to have specific objectives, goals, and measures. You will also need due dates when an action item is to be complete. Set aside time each month on your calendar to review your plan. Do NOT allow anything to interfere with that time. Once you start rescheduling that time it is no longer a priority and will fail.  An example would be planning to install a Checkpoint System. If you set a date of March 1st to have it installed you need to have the date and times to schedule appointments, calls, service visits, and follow-ups if a deadline looks like it won’t be met. All of these would be on your calendar and you have to ensure they get done.

The best plans are the simple plans with achievable goals. Too many action items, trying to do too much at once or lofty or unreasonable expectations are a recipe for failure.

     As you make your resolution to reduce shortage be sure to have objective dates in place and measures you can celebrate as you accomplish them. Celebrating a small victory will lead to the achievement of other victories. It may take a little time but you will see the result of your efforts at the end of the year in increased sales and lower shrinkage.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
« Previous Page
Next Page »