Reduce Business Shrink with These Common-Sense Loss Prevention Strategies
What would you do with $112 BILLION in your pocket? That is a question that retail business owners across the world should be asking themselves, because according to the 2012-2013 Global Retail Theft Barometer, a total of 1.4 percent of retail sales – equating to over $100 billion – were lost due to shrink. This isn’t an epidemic that only strikes large retailers or tiny shop owners – it’s a burden that a business of any size has to bear.
While shrinkage can be attributed to numerous causes, such as vendor fraud or administrative and paper error, the bulk of the issue lies in internal employee theft and external shoplifting. Before you go counting your losses, here are some tips to help business owners execute effective loss prevention strategies and reclaim their part of the money pie.
Promote a Security-Conscious Environment The fight against employee theft begins at the interview. Make an effort to hire honest employees. This can be done through interviewing techniques, written honesty tests, and most importantly by carefully checking references. Clearly communicate a zero-tolerance policy towards theft, both internal and external.
As an owner, there are simple processes you can put in place to control employee transactions and cut down the chances of theft: Require management approval on all refunds and credits. Make sure all employee purchases are rung up and checked by the owner, manager or another trustworthy, designated person.