The Holiday season does not start for some weeks yet, but if you are in the retail industry preparations for the busiest time of year begins months in advance. The retail industry loses billions a year due to shoplifting and employee theft making prevention all the more significant and solutions to decrease shrinkage pivotal in the profits and loss of a store. Read more about loss prevention by following the links below
Taking the Bite Out of Organized Retail Crime
“Store robbers…always work in gangs of two, three, or four in number, in order that their operations may be quickly conducted… The first thing to be done upon locating in a large town or city is to select the place upon which they design to work… When they finally decide upon a store to be robbed, they are fully posted with regard to everything that pertains to the business…”
A hundred and fifteen years ago, Allan Pinkerton, America’s “first detective” and founder of the Pinkerton National Detective Agency, penned those words in his book “Thirty Years a Detective: A Thorough and Comprehensive Exposé of Criminal Practice of All Grades and Classes”. In 2014, the tenth year that the National Retail Federation (NRF) conducted its Organized Retail Crime Survey, ORC has remained a staple of criminal enterprise in the United States, accounting for known losses in the neighborhood of $30 billion annually.
Organized Retail Crime (ORC) has been the bane of retailers for years and was first addressed by merchants in the late 1980s. Since then, ORC has grown into a yearly multi-billion dollar business that not only injures the retailer, but also the consumer, who has to pay higher prices. There is another loss — the one to communities in the form of lost tax revenue, which has a direct effect on state and local governments and school budgets causing a direct impact on the quality of life.
Since the early days, when ORC was first recognized, retailers have taken great steps to combat the crime. The most important step was the education of lawmakers who have passed laws across the nation combating Organized Retail Crime. Many of today’s retail trade organizations such as the National Retail Federation (NRF), the Food Marking Institute (FMI), Retail Industry Leaders Association (RILA), along with many other organizations have taken up the fight.
BearCom Informs Retailers on How to Use Two-Way Radios for Loss Prevention
BearCom, a nationwide provider of wireless communications equipment and solutions, offered suggestions on how two-way radios can help reduce loss during the busy holiday shopping season and all year round.
Loss, also called shrink, consists of shoplifting, employee or supply fraud, organized retail crime and administrative errors. According to Marianne Wilson at Chain Storage Age, “Growing shrink concerns have put loss prevention high on the agenda of retailers.”
“More than $100 billion worth of merchandise is stolen from retailers every year. That’s about 1.5 percent of retail sales, just in the United States,” said Hugh Johnston, Product & Purchasing Manager at BearCom. “The most effective way to prevent loss is to have a vigilant and visible staff in constant communication.”
Johnston gives some suggestions for basic shrink prevention that are especially important during the hectic holiday retail season:
Inconspicuous communications – When an employee needs to contact a manager or security personnel, they should do it in a way that doesn’t bring attention to the situation. Two-way radios with earpiece accessories enable quiet and discreet communication.
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