There are many articles out there with tips about how to spot a shoplifter, and while their advice is well intended, it obviously does not translate well. The retail industry loses billions of dollars every year, and it seems to be getting worse not better. Knowing your store, educating your management team, employees, and investing in systems to prevent shoplifting can help you minimize your loses, but will definitely not end it. Profiling a shoplifter is not only bad for business, but can definitely get you in trouble. Educate your employees and make sure they know what to do if an incident occurs in your store.
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New Study Finds Loss Prevention Priorities Fall Short For Large Retailers
Disconnect between IT and LP revealed in budgets of retailers.
New research from the IHL Group examines industry perspectives on loss prevention technologies in retail and the very different ways business groups including IT, LP and the C-Suite, valuate and allocate investment, staffing, and more in those technologies, based on their individual roles and priorities. The study, “The Great Disconnect Between LP and IT,” finds that there is a huge disconnect between IT and loss prevention.
A separate 2015 Retail Theft Survey found that dishonest employees steal more than six times the amount stolen by shoplifters ($825.36 vs $133.80), and yet the findings in the IHL research suggest that the gravity of those numbers don’t line up with the importance executives are placing on the problem.
The study found that retailers with greater than $1B in revenue spend only 8.3 percent of their IT budget on LP priorities (not including PCI and data breach protection efforts); and while 100 percent of LP professionals say cashier monitoring is a priority use of CCTV, IT and other business units de-prioritize it at 56 and 57 percent, respectively.
Retailers Lost $44.02 Billion In Shrink In 2014
The 24th annual National Retail Secury Survey (NRSS) administered by the National Retail Federation (NRF) shows retail and security providers exactly how much shrink affected retailers in 2014. The national study looks at a variety of topics including employee integrity, inventory shrink and other concerns. The study is the result of a partnership between the University of Florida, with the report sponsored by The Retail Equation. NRF shared excerpts from the report in a press release. The study, with responses from 100 senior loss prevention executives, was conducted in March and April. The findings should illuminate topics of concern for retailers, and examine what issues they need to consider for preventing high levels of shrink.
“Retail loss prevention professionals have one of the hardest jobs in the industry – protecting their customers, employees and merchandise from the threat of harm and fraud, and the results of this survey prove the enormity of their task,” says NRF President and CEO Matthew Shay. “Retailers will continue to review best practices and work to better educate decision makers in Washington about the burdens these crimes place on consumers, retail companies, their employees and the economy.”
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.
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