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.
As a manager of a retail shop, the layout of the store is probably out of your hands and there is nothing to do about it.
I wonder if Santa Clause conducts background checks on his newly hired elves? I’ve been contemplating the chaos that would take place in Santa’s workshop if he just hired any old elf to work for him. Does Santa ever get into a time crunch right around June and bring in seasonal hires to help meet timelines to get all of the toys made? Imagine the pilferage that would ensue if Santa’s Helpers haven’t been properly screened for criminal activity before being brought on board. Defective dolls might be delivered to darling little girls who deserve better. No firetrucks for a little fella because a fiendish elf stole it.
“Dashing through the snow in a one-horse open sleigh…” OH BOY, this is one of my favorite times of the year! Christmas time and the other holidays just make it special for me. The television specials, the music, the foods and treats and the decorations all combine to just give a warm feeling. I even feel like people tend to be friendlier and more helpful to each other. Then there is the shopping to do, going out to window shop or find that perfect gift for someone(s) special in our lives. Living in the South we don’t often get to dash through the snow but when you live up in the northern states you can add the winter frolicking to your holidays. Even if we haven’t experienced it almost all of us have seen pictures or movies with reindeer dashing through the snow pulling Santa’s sleigh. There’s something about it that evokes a bit of childhood magic.
A Department of Corrections officer was arrested this week at a Walmart for shoplifting. The perpetrator was a former Walmart employee who had left to become a corrections officer. The incident was reported to the authorities, indicating the amount stolen was around $400 dollars during 45 visits at that particular Walmart.
I remember it like it was yesterday. It was a Black Friday morning and we had lines of customers jockeying for position at 16 front end cash registers, two pharmacy registers, a jewelry counter register and 2 registers at our electronics counter. Sure, there were a lot of people, hundreds if not a thousand at one time but we were handling it. I had our Loss Prevention team monitoring cameras, checking receipts at the front doors and walking the floor with “Security” jackets on to deter theft and prevent fights. The store management team had good plans in place for replenishing freight on the floor and giving employees breaks. I had worked with the Store Manager to control the flow of customers into our building and all had gone off without a hitch, no pushing, shoving or fights. I even had a number of police officers at our front doors aiding us with crowd control. We had really planned for every contingency, or so we thought. The one thing that we had not planned for happened and it was a major problem, our register system went down! The audible sighs, snide remarks, and expressions of anger and frustration were heard in one collective voice. All of our managers jumped into action trying to reboot registers and get systems back online. Ever so slowly we got things moving again but it was a nightmare and it made us realize the scary truth, we had not really prepared for everything as well as we thought we had. A number of shopping carts had been abandoned with Black Friday specials in them and no salesfloor staff available to re-shelve the merchandise.
With Thanksgiving right around the corner, I thought it would be an appropriate time for me to ask the employers out there how thankful are you for the staff you have? I don’t mean are you just thankful you have people who work for you in a general sense but how thankful are you for what they bring to the workplace every day? Maybe you have never thought about it like that. I’m certain you are thankful that Bobby showed up on time today or Mary Jane rang up customers without a customer complaint. But have you ever looked at how you express your thanks to your team? Maybe your attitude is that you pay them and that should be enough. Perhaps you give your employees a birthday card when their birthday rolls around each year. But is that really sufficient? Is it fair for your employees to expect more from you in terms of recognition?