A store no matter the size cannot avoid theft. Employee theft and shoplifting are major issues for the retail industry around the globe. Billions of dollars are lost due to this crime, and everybody is somehow affected.
The small business cannot weather the storm as well as the big retailers and could close their doors due to this issue, the honest buyer pays more their merchandise, everyone pays regardless of who commits the crime. So, what can you do to protect your business from shoplifting and employee theft.
Owners should set good example to help combat employee theft
Q. How can a small business avoid employee theft?
A. That’s a timely question because employee theft is more likely during a recession.
The risk is illustrated by a recent news story of a chief financial officer who embezzled $9.9 million over six years. Most employees are honest and loyal but a single dishonest employee can cause large losses.
The average loss when major employee financial theft occurs is about $190,000, enough to bankrupt a small business. Small businesses are more susceptible to employee theft. Owners tend to be too trusting and either are not skilled in financial management to catch theft or don’t have time to monitor financial transactions to avoid theft. Employee staffs are small and that makes it difficult to separate financial functions among employees to avoid theft and have financial controls. Owners need to strike the right balance between employee trust, which is essential for employee loyalty, and maintaining controls to avoid theft.
Walmart’s Shrinkage Problem Is Causing Earnings Headaches And A Lot Of Excuses
Thieves are creating a massive headache for Walmart’s bottom line and the company is now regularly blaming shrinkage for much of its earnings issues.
During the retail giant’s quarterly results call on Tuesday morning, the company spoke about shrinkage throughout the conversation. Shrinkage was mentioned 13 times on the call, as the company’s team quickly blamed theft for much of its lower than expected earnings.
The company says much of its writedowns occurred for inventory that just disappeared. Walmart employees claim that customers steal everything from meat to electronics.
According to Walmart’s chief financial officer, Charles Holley, the problem isn’t about to go away anytime soon. Walmart is restarting a program to teach employees how to spot thieves and the company is auditing its entire supply chain to “close gaps” while it adds staff to parts of store’s in which items tend to vanish. In many locations, new “receipt” checkers will even make sure items are not being snuck out after someone leaves the register.
Newport Grand employee arrested, fired for alleged theft at slots parlor
A Newport Grand employee has been arrested and fired from her cashier’s job for allegedly trying to steal $1,300 from the slots parlor.
Kimberley Albro, of 6 Union St., Warren, was arrested in April by Rhode Island State Police after Newport Grand alerted them to the theft. Albro subsequently was fired from her slots parlor cashier’s job and the R.I. Department of Business Regulation later revoked the state-required “operations employee license” needed to handle money at Rhode Island gambling venues, according to records of the two state agencies.
Albro apparently tried to get away with pilfering the money from her cashier’s drawer, but other employees noticed that her transactions were off, according to State Police Capt. Matthew C. Moynihan. A review of video recordings by Newport Grand security showed Albro taking the money.
“Security there is very tight,” Moynihan said.
Newport Grand alerted state police, who arrested Albro, Moynihan said. She was arraigned April 3 in Newport District Court on a felony charge of embezzlement of more than $100. The case remains open.
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