If you are experiencing inventory loss through shoplifting, you have probably considered installing a checkpoint security system or similar product. You may have asked yourself whether the investment is worth it wondering what the result would be.
checkpoint security systems corporate head quarters called in third party experts Price Waterhouse Coopers to conduct a study for a major supermarket chain. Their findings are very interesting, here are a few tidbits…
Four locations tested, 98 sku’s in test
Four weeks pre checkpoint security system installation observation
10 weeks post checkpoint security system installation observation
Overall shrinkage on the 98 sku’s tested averaged out to a 69.79% reduction in shrinkage!
Since the shrinkage was reduced profits also increased for two reasons, first there is more product available to sell if not stolen and second less losses obviously means the cost of goods does not have to be recovered or absorbed into profits.
This resulted in a net increase in sales of 9.2%.
So with a checkpoint security system installed the retailer not only lost less product due to theft they actually increased sales by having more product on the shelf for buyers. The system had an average ROI of between 6 to 9 months. Keep in mind supermarkets have very low net margins, usually below 2% so getting a ROI that quickly is significant.
To explore the type of results you could expect go to: checkpoint security system
Contact Loss Prevention Systems for a consultation today.
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