The retail industry according to some reports was a $2.5 trillion in 2012 with a predicted increase of 3.4% for the year 2013. As the busiest season for the retail industry is fast approaching, retail stores and businesses will be busy keeping inventory on the shelves as avid customers shop at their stores. While many retail stores prepare for this time, retail security and surveillance should be part of their strategy to keep this year the best profitable yet.
For more information about shrinkage follow the links below.
Reducing Retail Shrinkage: How to Beef Up Security and Prevent Loss in Your Store
Shrinkage (aka: Public Enemy #1 for most retailers), can eat up a significant amount of your profits. According to the National Retail Federation, retail shrinkage amounted to $34.5 billion in 2011, and a big chunk of that was due to theft or fraud.
That’s why it’s critical to constantly stay on top of protecting your store. Keep your systems up-to-date, be vigilant about spotting fishy behavior, and see to it that your staff is adequately trained to deal with security issues.
To help you do all that, below are some of the most common causes of retail shrinkage along with security tips to help you prevent them.
Shoplifting
A common problem among retailers, you can prevent shoplifting with the following steps:
1. Recognize the signs – Educate yourself and your staff on how to spot shoplifters. Keep an eye out for people who:
Survey: Retail shrink translates into $57 billion loss; cash theft jumps 20%
New York — Shrinkage levels average 1.27% of sales, which translates to a $57 billion loss to the industry, according to the U.S. Retail Fraud Survey, which is based on research into the systems and strategies used by 100 leading North American retailers.
The biggest area of store loss remains employee theft (38% of shrink), up 3% from last year, according to the study, published by U.K. based Retail Knowledge and sponsored by Volumatic and Kount. It is followed by cash theft (24%), up 20% from last year, administration and book keeping errors (21%), down 9%, and shoplifting (11%), down 15%.
The biggest area of online loss is fraudulent use of credit cards (59% of shrink).
In other survey highlights:
• Return fraud is costing retailers an average of 0.25% of sales this year, compared with an average of 0.4% last year.
• With regards to loss prevention departments, on average, each member of the fraud prevention team is responsible for $103 million of sales.
5 Tips for Reducing Shrink
1. Find vulnerabilities: Take a look at your store layout as though it were in a heist film and think, “If I were to steal something, how would I do it?”
2. Determine where to concentrate your resources: Your high value items that can be stolen easily should be of more concern for you when merchandising, as well as protecting with security features.
3. Cameras don’t work unless you use them: Installing cameras isn’t enough to deter employees and serial shoplifters. If you notice discrepancies in the register or on the shelves, look at the tape.
4. Signs deter some, not others: Professional thieves aren’t likely to care much about signs (or cameras for that matter). However, employees and amateur shoplifters can be dissuaded if they know they are being watched.
5. Talk to your team: Employees need to be on the same page as their manager when it comes to a loss prevention strategy. Source: retailminded.com
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