Inventory shrinkage cuts far deeper into the bottom line than most retailers and business owners realize. In fact, a recent National Retail Security Study showed inventory shrinkage represents 1.47% of retail revenue.
How that breaks down is both startling and revealing.
Of that amount,
- 48% is due to employee theft
- 32% to shoplifting
- 15% administrative errors
- 5% vendor fraud
Retail loss and inventory shrinkage can devastate a business. The good news is that much of it can be prevented with the right strategies. Here are some important tips for reducing loss:
- Do background checks before hiring
- Keep employee morale high
- Develop a specific loss prevention protocol
- Train all employees on theft reduction strategies
- Have a dedicated theft reduction team
- Stop by the business frequently and without warning
- Check inventory and cash drawers
- Check physical inventory against inventory lists
- Hire security guards
- Make Integrity part of the company culture
- Install access control systems
- Install video surveillance systems and CCTV
- Manage traffic patterns and choke points
- Be aware of dwell times
- Train employees to engage customers
- Train employees to spot suspicious activities
Retail loss is a complex problem that requires a multifaceted solution. In a time where most retailers work within very tight margins, it is vital to increase the effectiveness of your strategy by utilizing the tools you put in place most effectively. Learn about the technologies you implement, and find out how you can use them to the fullest potential. Technologies such as security alarm systems, video surveillance, and access control systems can all be controlled and monitored remotely giving you the most control of your business.
If you have questions about how to implement business security systems as part of a loss prevention program, give us a call today. We’d be happy to assist you.