A major ongoing concern for retailers is loss prevention, which is understandable as losses from employee theft, shoplifting and admin errors are costing retailers an extortionate amount of money. According to the British Retail Consortium, £613 million was lost by retailers 2014-2015 just through crime, this number does not include additional admin errors that are made.As a retailer you need to be aware and proactive about loss prevention, here is a list of things that can be done to help you reduce shrinkage and improve store security.
Give a Clear Message
Putting up security signs that show zero tolerance to theft whether it is internal or external is a low-cost way to deter potential thieves. Ensure as soon as someone walks into your shop or staff areas that the signs are clear and visible, both at the entrance and especially in changing rooms. Make sure that the message is clear and if they steal from you they will be prosecuted and taking a ride in a police car, which is a promise, not a threat.
Watch and Record
An excellent way of seeing what is going on in your store is to have surveillance cameras installed. This gives you the opportunity to monitor not just repeat offenders of shoplifting but also unusual staff behavior. It gives you the evidence to successfully prosecute those that have stolen from your store whether that is internal or external.
Reflecting on the Situation
Another cost-effective way to reduce theft is to install mirrors in your store. Blind spots which are normally corners blocked by fixtures or shelving and areas that are not visible to the cashier. Mirrors can give all staff especially Managers the view they need of the store and remove the temptation for individuals being out of sight to steal.
Responsibility
As a retailer, you may have a POS (Point of Sale) system which should allow you to set specific user permissions to restrict or allow certain tasks to be completed. It is imperative you understand who has permissions for which tasks as this is one of the easiest ways to allow internal theft, managers should have to also sign off any high-risk tasks. Be especially aware of how many void sales are being put through and who is authorizing them as this is a very simple way for staff to pass items to friends and family with no payment.
In Control
Being in control of your stock is crucial in managing loss prevention. If you do not know where your stock is and how many items of each product should be where you are leaving yourself wide open to have both external and internal thefts. Counting your stock on a regular basis will identify discrepancies earlier and will keep your financial records on track. Counting proactively rather than reactively when the stock is identified as missing reduces inconsistencies. Starting a count after the stock is found to be missing is shutting the door after the horse has bolted. If you conduct regular stocktakes then you can avoid the stock going missing. Use the stocktaking reports to identify high-risk areas in your store where the stock is regularly going missing. Also, ensure your staff has a full understanding where these areas are and how to minimize the loss of your stock.
The points made above can certainly help in increasing your store security and ultimately reduce your shrinkage, they can also be used within a warehouse environment. It is really important you look at your store or warehouse and identify its unique weaknesses to manage your loss prevention effectively.