To fix a problem, you first need to know what is wrong with it. Shoplifting and employee theft are two of the main causes of billions of dollars lost in the retail industry every year. Employers and management personnel do not know how to fix those problems, and sometimes are not aware there is a problem till much later. If employees are caught stealing, the problems then are the financial costs associated with prosecuting such individuals. Is firing them enough punishment? Should the employer pay thousands of dollars in legal fees to bring such individuals to court? There are many issues associated with shoplifting, do you know what to do about them?
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Managing Retail Shrink Begins with Problem Identification
The retail shrink action plan should begin with problem identification.
One question I have been asked frequently is, “How did you know how to battle retail shrink in the grocery business, especially considering your background is predominantly in discount retail?” My response to that question is almost always the same, which is: “I follow the loss prevention road map.” Often I get blank stares, but after explaining, most understand and realize they have probably been following their own road map for years without realizing it.
I have always described the road map as a six-step process; one that takes years to perfect, but when executed properly can yield amazing results in not only retail shrinkage reduction, but any expense a company is attempting to minimize.
The process includes the following six steps:
• Step 1—Problem identification
• Step 2—Program development
• Step 3—Program execution, or what I like to call countermeasures
• Step 4—Comprehensive awareness programs
• Step 5—Auditing for compliance
• Step 6—Measurement



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Employee theft continues to rise.  In some retail settings it’s surpassed customer theft.  There are a variety of reasons for the increase.  One of them is that many managers have a hard time believing that “My people would do such a thing”.  And because they have a hard time believing it they don’t take steps to combat it.
EAS is great isn’t it? For the most part, if someone is stealing product “X,” you slap on a quick tag or label and you see a pretty substantial reduction in shrink (for the most part.… Live in the real world). As my LP career has progressed over the years, I’ve seen EAS change drastically. I’ve also seen what retailers apply EAS tags to change as well. Often times, I scratch my head in disbelief at the ideas that come out sometimes and others, I pull my hair out because we could have been more proactive with tag placement. I’ve also seen some fantastic ideas from my store teams on some not so standard tagging procedures.