On average, big business retailers suffer over $42 billion in annual losses due to shrinkage throughout the U.S. Regardless of the size of your store, there are strategies that you can implement to reduce shrinkage and increase your bottom line profit. We have picked out our top 5 recommendations and laid them out for you.
Strategically place deterrents –
Criminals target stores that they feel they have the least chance of getting caught at. Well-placed deterrents can lower your shrinkage substantially. Signs stating that shoplifters will be prosecuted or that you are on camera are an inexpensive option that will make shoplifters take a second thought before stealing. Other options for deterrents include visible cameras, RFID tags, mirrors, detection systems, or a full-time security guard.
Train your employees –
Your staff can be your number one asset for loss prevention if you train them correctly. Develop policies and procedures that your employees can implement to deter shoplifting. Some of these policies could include:
- Greeting a customer as they walk into your store.
- Making sure you have adequate staffing depending on the amount of traffic you have at any set time of day.
- Show employees how to identify if price tags have been switched.
- Identify a code word for staff to alert others of suspicious activities.
Reconsider your floorplan –
It is important to maintain visibility throughout the store. If you have a rack in the middle of your store that prevents your employees from being able to monitor activity in the back, you may want to rethink your placement of those taller displays. Any display placement like these allow a shoplifter to have a place to hide while they stash the goods.
Minimize internal theft probability –
Just like every tree has a few bad apples, every store will go through their own batch of bad employees. There are ways to promote good work ethic before the opportunity to consider stealing ever arises. The first strategy to implement is a simple one. Create a positive work environment and company culture. When an employee feels like they are part of a community or when their place of employment feels like a second home; they will be exponentially less likely to steal from that company.
Be intentionally inconsistent –
During your procedures, be consistent in the activities that you plan but constantly change up the timing and individual performing those procedures. For example, if you are having an employee count inventory of a particular item, rotate from one employee to another to help promote a culture of honesty. If you have the same person completing the audit each time, it could occur to them that it would be unlikely for them to get caught if they were to start stealing small quantities here and there. Switching between employees keeps each individual accountable.
Have you already implemented these 5 tactics and are still suffering detrimental losses? We have partnered with Sapphire Risk Advisory Group to offer you a free security phone consultation.
If you are interested in learning more, you can request your free security phone consultation by following these easy steps.
- Go to this page
- Fill out the form
- That’s it! A seasoned security expert will be in contact with you.
Written by: Heather Haney