How to Cut Retail Product Loss

Retailers battle product theft by shoppers every day. Just as much is stolen by employees, sometimes more. Employees have access to every part of the shop or store. They receive goods, prepare them for shipping and can even steal when taking out the trash. Most employees and customers have no intention of stealing and would never do so. It is the minority who cause the most trouble. Retailers constantly need to consider how to prevent loss. The consumer is the ultimate loser when a retailer loses profit and inventory to thieves, because the retailer must build that cost into the retail price of every product sold. The best weapon against loss is prevention, not capture of the thief. But often, discussing theft prevention methods can give the thieves the knowledge they need to steal more successfully. There are, however, many loss prevention aspects that can be discussed openly.

Instructions

1. Fend off internal and external losses. Average retail loss, or 'shrink', is 1.57 percent of the annual sales according to the National Retail Federation's National Retail Security Survey. Home Center, hardware, lumber and garden retailers experienced 1.54 percent of total annual sales, just below the retail industry average. The 'shrink' rate as remained relatively stable throughout the past years. For the garden and home centers, employee theft represents 38% of shrinkage and shoplifting equals 24%.

2. Assemble loss prevention methods. Start with customer service. Pay attention to all shoppers and stay close by. Ask if a customer if she needs help finding something if she is lingering. Teach employees to be watchful and have a physical presence at all times. This is probably the best shoplifting prevention technique.

3. Open your store layout. Employees can monitor customers more easily if the store is laid out so a single sales associate can operate the register and observe the front of the store as well.

4. Install security cameras. When the store is busy, there may be too many customers for employees to devote time to just one. Security cameras deter theft and create a record for law enforcement. The also show the shopper that someone is paying attention to his actions. Magnetic security tags work well for shoplifters. If they leave the store without paying, alarms sound.

5. Do not let employees apprehend shoplifters. The shoplifter can become abusive and dangerous. Call the police and let them handle it.

6. Watch the trash. Employees take out the trash when needed. Often dishonest employees can take merchandise out with the trash, put it in their vehicles or hide it somewhere for later pick up. Use see-through trash bags and keep an eye on the trash when it goes out.