Shrink loss has been a huge problem in retail for many years. The term is a euphemism for theft and accounts for 1 percent to 2 percent of sales in stores across the country. However, there are a number of strategies to control and reduce theft in your store.
The number one source of retail shrinkage is employee theft, according to a national survey. The types of theft include improper price reductions, refunds and even credit card abuse. The best way to avoid this problem is to install a strong ethical culture that stresses your firm's values and the punishments for violating the firm's policies. It is difficult to monitor because of the authority that employees have; however, a close examination of individual employees' refund and discount records can give clues as to who is violating the policies.
Some shoplifting strategies include concealment, altering or swapping price tags. Annually shoplifting costs retailers tens of billions of dollars. Extensive store monitoring using employees and security guards can reduce this problem. Install surveillance cameras that focus on entrances and exits, loading areas, cash registers and high-value items. Train employees to spot likely shoplifters and the techniques that are used. For example, many shoplifters work in pairs to distract employees and take off with the merchandise.
Establish anti-fraud processes to ensure that goods are authentic. For example, mandate that any products returned for cash has the original receipt. For merchandise that the customer does not have a receipt for only provide store credit and only upon proof of photo identification. Also, employees should place magnetic strips or security clips on merchandise that sounds an alarm when they are stolen.
Another form of shrink loss is vendor fraud, which is when a vendor misstates how much product they are delivering to the store. This obviously will effect the profit of the store as the company pays more for fewer products. Carefully monitor this through counting when the product comes into the store. If it is many small products, use RFID tags and to ensure that everything has been delivered.
- Photo Credit Hemera Technologies/AbleStock.com/Getty Images
How to Prevent Soil Erosion
Erosion takes place in nature all the time, but it can also affect your own backyard whether you live in the country...
How to Prevent Retail Shrinking
People generally avoid talking about retail shrinkage. Most think shoplifting represents the lion's share of retail theft, but the Center for Retail...
How to Calculate Retail Shrink
In accounting, shrink or shrinkage is when you have loss of inventory. This loss of inventory is usually due to theft. It...
What Is Shrink Control?
Shrink is a term used in retail to describe theft and inventory losses. This includes losses resulting from associate theft, shoplifting, paperwork...
Tips for Retail Security
Loss prevention is a major part of the retail business. According to Crime Doctor, American retailers lose up to $13 billion a...
Safety Procedures for a Warehouse
Employees need to follow safety procedures in the workplace at all times for their protection. A warehouse may contain hazardous materials or...
Loss Prevention Interview Tips
A career in loss prevention can be very lucrative. It can be an exciting job. Some of your duties include working undercover...
Safety & Fall Prevention Posters
Whether you work in an office or a factory, safety is everyone's responsibility, and it is important for every member of the...