Cash Handling Tips That Can Prevent Cash Losses

April 30, 2017 by Leave a Comment

Have you ever noticed that when a convenience store robbery takes place the crook never demands all of the credit card slips? I have never heard of a bank robber pulling out a gun and yelling for the teller to give them all of the checks in the drawer. What is it the bad guys are always trying to get their hands on…CASH! While Loss Prevention departments do work on credit card and fraudulent check cases our bigger concern is cash theft and fraud. It has been my experience that in many incidents involving a stolen credit card or check, I have been able to work with bank investigators and police detectives to identify and in some cases resolve those crimes. In those situations there is usually a victim as well as a perpetrator of the crime. When it comes to cash loss cases it becomes another matter altogether, the victim is the store. While we may have video of the crime there may not be any other means of tying in additional information. Another issue with cash losses is that the stolen money cannot be tracked further. Stolen credit cards tend to leave a trail of locations where they are used which can lead to greater opportunities to pick up on additional evidence. The same can be true with fraudulent check writing cases. With a cash loss case, once it’s gone you don’t see it again, money is not traced.

     What kind of situations can lead to cash losses? The first thing that comes to mind is internal employee theft. A cashier may steal directly from a register till and pocket the money. You could also have a cashier stealing from customers by short-changing them. I recall at least one case I had in which the employee was keeping back a dollar every so often from a customer’s change they were due back. Until a customer complained to the supervisor rather than going back to the cashier, I had no idea it was taking place.

     External causes of cash loss can include:

  • Robbery
  • Short change artists
  • Till Tappers
  • Counterfeit and fraudulent cash (fraudulent bills may be a $1 bill with two $100 corners pasted over two of the $1 corners. The other two corners are pasted on another $1 bill giving the bad guy $200 of value for a $100 bill and yes, it does happen when a bad guy tries to hurry a new or young cashier).
  • Grab and Runs

In all the cases of external cash losses there are cash handling tips that any store can use to minimize the risk of loss or the amount of exposure to loss:

  • Be sure to do daily bank deposits. Preferably contract with an armored car service to pick up money or drop off change orders. If you choose to conduct your own deposits vary the time of day and the route to the bank. Storing excess money in your cash office only increases the amount you could lose in a robbery.
  • Train cashiers to call a manager or supervisor for any transaction that is $20 or less and the payment is a $100 bill.
  • Train cashiers to never allow someone to put their hand in the till. Slam the drawer closed if necessary. If a customer is taking too long to look for change, the drawer should be closed.
  • Have cashiers place all large bills under the till and call for a pick up when the transaction is complete or have a cash drop at the register that can only be opened by a supervisor. This keeps bills from being seen by customers when the drawer is opened and prevents a grab and run.
  • Use locking till covers for registers. When a register is not in use but has money in it, the till cover prevents someone from getting to the cash even if they have a register key to open the drawer.
  • Cashiers should each have their own till. When multiple employees work from one register it is more difficult to pinpoint who may be causing cash shortages and dishonest cashiers know it.
  • Conduct register skims when they are over a pre-determined dollar amount. There is a temptation for dishonest employees to feel that the more money in the register the less likely a $10 or $20 bill will be missed. Lesser amounts in a register drawer also take away incentive for a potential robber.

There is always going to be risk of loss when cash is an accepted form of tender for your business. Minimizing that risk can be done through training and a few commonsense security measures.

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Improving Loss Prevention Training For Your Employees

April 21, 2017 by Leave a Comment

Training your personnel well on how to handle shoplifting incidents, can be an asset for any company. Excellent training is an asset.  Prejudiced training is a liability for the business plus it’s bad for business.  The loss prevention team and management of the store that receive training and are constantly educating themselves through out their careers, become  indispensable in any company.  

For more about this topic, follow the links below.

How Organizations Can Impact Loss Prevention with Improved Associate Knowledge

Four takeaways gathered over the course of transforming the way Bloomingdale’s approaches LP and safety training:

Prior to 2012, Bloomingdale’s was doing what most retail organizations do when it comes to lossprevention and safety training–relying on a number of standard training approaches like posters, classroom training, huddles, and pre-shift morning rallies. But these approaches just weren’t working.

As I contemplated this situation, I realized we weren’t focused on the right thing. We were concentrating on simply delivering training, when we should have been focused on building knowledge. Simply plastering posters on the wall or using all those other one-off approaches weren’t making our associates smarter or getting them to do the right things on the job. This dearth of knowledge was impacting our loss prevention and safety numbers.

We sought out and eventually discovered an employee knowledge platform that aligned with the organizational vision. The platform’s methodology, which was rooted in brain science principles, and its use of gamification techniques to keep associates interested, succeeded in building employee expertise over time. Since implementing the platform, we’ve reduced safety claims by 41 percent and saved $2.2 million per year, which is a $10 million savings overall.

Here are a 20 ways to make more money and boost your profit margins by minimizing loss in your business: – Modest Money (press release) (blog)

There’s an old saying that “you have to spend money to make money,” but it’s also true that one of the best ways to make money is to avoid spending money in the wrong places. If your business is spending too much money on unnecessary business expenses – or worse, if your business is losing money due to theft by customers or employee fraud – you are letting good money go out the door. And this makes it harder for your business to be profitable because you have to work that much harder.

Here are a 20 ways to make more money and boost your profit margins by minimizing loss in your business:

  1. Reduce Administrative Errors: Many businesses make seemingly simple mistakes in their pricing, paperwork or bookkeeping that lead to big losses over time.

VIDEO: What police told last night’s West Seattle Crime Prevention Council meeting about recent gunfire incidents, and more

Despite the overnight gunfire spree hours earlier, turnout was low at last night’s West Seattle Crime Prevention Council meeting, so we recorded highlights on video. Above is what precinct commander Capt. Pierre Davis told attendees; below, special guest Officer James Ritter, talking about the SPD Safe Place program, which has now been adopted by more than 50 cities across the country.

Toplines: Capt. Davis said a multi-city/multi-agency task force is working on the gunfire situation, which has seen recent incidents in South Park as well as West Seattle (SP also is part of the SW Precinct’s jurisdiction). None of the WS incidents have resulted in injuries – so far; the precinct is working with special teams including the Gang Unit and SWAT and trying to get more officers out on patrol to try to get ahead of the problem. They are working to identify potential suspects who might be from out of the area – he mentioned Kent, Renton, Federal Way – but spending time with family in this area.

 

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The Advantages of Hiring and Training Good Employees

April 11, 2017 by Leave a Comment

A study done by the University of California at Berkley found that hiring a new employee costs an approximate $4,000 dollars per employee and in hiring for higher positions-professionals and management level employees-the figure increases to $7,000. If you are a small business, then the figure increases per every new employee you are trying to hire.  If you are a small business that offers other benefits to their employees, the cost increases considerably.  The importance of hiring quality employees, or training the employees you already have, are an economic advantage many businesses cannot pass.  Hiring and training new employees is expensive, why not do it right the first time? Background checks, and recommendations from other employers are not something you can take lightly.  Checked them before you hire, and it would likely paid dividends.

For more about this and other stories, follow the links below.

Loss Prevention Management Must Focus on Quality Recruitment and Retention

Loss prevention management has the power to improve understanding, morale, and workplace inclusion.

Let’s face it—the bottom line to any corporate organization is the profit margin. However, those in executive loss prevention management should always be mindful that quality of service drives the margin. Factors that lead to high-quality service are often the result of well-retained employees. Specifically, all management levels need to be mindful of what policies work, what don’t work, and what looks promising.

Recruitment and Training

Think back to when you first joined your company. What was your initial impression of the first few people you met when you went in for the initial interview? Do you remember their general attitude about the company?

Chances are that your initial impression was positive. Perhaps this is why you stayed. Do you think the same attitudes are being conveyed to new recruits today? If not, you might consider those colleagues who left the company. What was it about their experiences that differed from yours, that made them leave?

The Square Alliance met this morning to discuss ways to combat the increase in shoplifting in the hub of Oxford’s shopping. Business owners had a Q&A with OPD investigator Chris Case about how to prevent shoplifting and deal with those who are caught in the act.

Case provided tips in shoplifting prevention such as a more visible security system, keeping an eye out for suspicious activity and more. Business owners voiced their opinions and discussed certain tricks and trends that they’ve noticed shoplifters using to attempt to steal merchandise. Case mentioned that shoplifters will usually work in pairs rather than alone to attempt to distract workers while they commit the crime.

A heavy importance was placed on figuring out how to deal with shoplifters when they are caught in the act to find the balance of ensuring security but not overstepping the boundaries. Businesses and workers have the ability to recover stolen merchandise and keep the violator in the store until the authorities arrive, as long as they have probable cause. It is also unlawful to lock them in a small space such as a closet or use force.

Wal-Mart has a unique way to cut down on shoplifting

Wal-Mart has taken the law into its own hands. 

No, the company has not started its own jail, and any employee who wears a cape and fights crime must still do so on his own time. Instead, the retail chain has taken a new approach to fighting shoplifting that requires less involvement from the police. The retailer has been using a “restorative justice” program in 1,500 of its stores, according to The Gainesville Sun. That’s a program in which people deemed low-risk, first-time offenders are given the choice of paying to take an anti-shoplifting course rather than facing arrest and prosecution.

The effort is in its early days, but the results have been good so far. The company has seen a 35% reduction in calls to law enforcement nationwide since restorative justice programs were first implemented, Wal-Mart spokesman Ragan Dickens told The Sun in an email.

“No retailer is immune to the challenge of crime. We recognize the importance of this issue at the highest levels of the company, and we are investing in people and technology to support our stores,” he wrote, noting that police are not being cut out of the loop.

 

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Fighting Shoplifting Locally

April 4, 2017 by Leave a Comment

Across the United States, local governments are passing legislature to combat and punish shoplifting and employee theft.  The harsher sentences are supposed to deter the shoplifter while sending the message of severe persecution if caught shoplifting.  Now, small business owners are taking a new initiative.  They are uniting to fight retail theft, and being able to provide information about shoplifters and shoplifting among retailers in the area.In some areas, the increase of shoplifting is hitting businesses hard and according to them “We are fed up.”

For more about this and other topics, follow the links below.

East Coast supermarket chain finds talent in former drug dealers

PHILADELPHIA

When Jeffrey Brown looks to promote employees within his 13-store supermarket chain, he looks for people with hustle, ability, commitment, all that.

There’s another unlikely attribute that has turned out to be a predictor of success at Brown’s ShopRite and Fresh Grocer stores.

Drug dealing.

“What we realized is that a lot of the people we hired were in the drug trade,” said Brown, founder and chief executive of Brown’s Super Stores Inc. “We were surprised that some of the people we hired have fairly good business skills. The drug trade is a business. It’s an illegal business. You are buying. You are selling. You have inventory. You have some of the common problems that any retailer has. A lot of them are accelerating into management.”

That’s the kind of human capital insight that Brown would never have imagined in 2008, when, at the urging of an outspoken customer, he decided to make it his company’s mission to hire people coming out of prison.

Research Findings from Employee Theft Articles

Peer-reviewed employee theft articles can stimulate discussion and reassessment of policies among LP professionals.

As many of you know, I have been researching employee theft, occupational crime, employee dishonesty, and workplace deviance for more than 30 years. I peruse scholarly journals and academic publications regularly for relevant research studies that can help us all better understand this phenomenon. This column features a couple of employee theft articles that may shed some light on this continuing problem. I have included the full citations so you can find these publications online or in your local library to read and share with your staff. If you do not have direct access to a major research library, try using Google Scholar.

“Workplace Theft: An Analysis of Student-Employee Offenders and Job Attributes”

The first of the two employee theft articles is authored by Elizabeth Ehrhardt Mustaine (University of Central Florida) and Richard Tewksbury (University of Louisville) and published in the American Journal of Criminal Justice 27:1 (pages 111 – 127, 2002). This employee theft study surveyed a large population of college students attending a number of major universities. Since existing research suggests that many dishonest employees are younger, part-time, untenured, and dissatisfied, these two researchers concluded that college students would make an ideal sample of employees to survey about their occupational criminal behavior.

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Defective Hiring

March 31, 2017 by Leave a Comment

Would you knowingly buy a car with a defective engine? Of course not! So why would you hire a “defective employee”?

My definition of a defective employee is one with a criminal history, horrible credit history, has lied on their application and more.

Getting this kind of problem child in your business is asking for trouble you don’t need or have time for. On top of that, do you really want someone who has stolen, committed violent acts or worse in the environment you are trying to build? That person then wastes your hard earned resources including payroll, training and time by causing the same aggravation they have for others. But this time you have to deal with them.

Do you know what the most lied about item is on an application? It is not pay, experience or even that they really do not have a sunny disposition.  It is the dates of employment from their previous jobs. Let’s say they have had three previous jobs. They got fired from number two so they stretch the dates of number one and three and whoosh job number two never existed. As employers we want to have it all including the good, bad and especially the ugly. This allows us to make better hiring decisions. 

We can find this out for you. The criminal acts, thefts, assaults, DUI’s, rapes, illegal drug convictions and more. Oh yes, we can even find those jobs they are not telling you about and get the dates of employment. 

You do not want a car that breaks down as soon as you drive it off the lot. Why would you want the same thing in an employee? Contact us today; we can start pre-employment background checks for you right away.  In most cases we have same or next day results.

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Tuning Up Your CCTV To Maximize Safety And Security

March 31, 2017 by Leave a Comment

When do closed circuit television malfunctions occur? I’m sure you can guess, it is always at the point when you need it most. I can’t recall the number of instances when I had a cash shortage I needed to look for and when I attempted to pull video through the DVR the video was already dropped or the camera wasn’t functioning. I remember having to look for an image of a suspect in a shoplifting incident and the picture was too grainy to be of any use due to a dirty camera lens or dome. One slightly embarrassing situation that stands out in my mind involved robberies that were taking place behind our store. I had developed a great working relationship with our local police department and they knew the quality of our camera system. Investigators came to me seeking assistance with outdoor camera footage to try to identify the criminals conducting the robberies. I pulled up video of the date and time in question and much to my chagrin the camera had a great shot of the ground directly underneath it. A power surge had impacted the programming of the pan/tilt/zoom (PTZ) camera and placed it in a default position. I had not noticed the problem in a timely fashion and could not recall how long it was before I did catch the issue. The good news was I was able to re-program the camera and eventually we did provide footage of an incident a little later that led to an arrest.

     It is important to do a spring cleaning of your Loss Prevention tools, and especially a tune up of your closed circuit television (cctv) equipment. As a Loss Prevention Manager for a big box retailer, each spring we would have what we referred to as a bounce back checklist. The checklist covered a number of housekeeping items, including cleaning and checking CCTV components. Doing so helped to ensure we were getting maximum video retention, quality camera pictures, clear public view monitor images and we would identify equipment needing repairs.

     I used to train my team to look at CCTV equipment from the eye of a shoplifter. If there is a public view monitor it is supposed to be a deterrent to crime. When the bad guys see their picture on a monitor the idea is that they will be less inclined to do what they intended whether it is shoplifting, stealing purses or robbing the business. I would emphasize that a filthy monitor or poor quality picture indicated to the bad guys that the store didn’t take Loss Prevention seriously and diminished the deterrence value.

     CCTV equipment maintenance is not just for stores with a Loss Prevention Department. Many stores do not have a security department but there is equipment that is a precaution against crime. Often a camera system with a digital video recorder, computer and or multiplexer is housed in a small office recording activity. It can be easy to forget about it if there is not someone assigned to check on it daily. Sometimes it is neglected until a robbery takes place or money is missing from a register and then a manager goes to review footage and finds the system is not functioning. Using a spring checklist helps managers ensure equipment will be functioning when it is needed.

      So what should be included in a cctv tune-up checklist?

  • Dust digital video recorders, keyboards, computers and multiplexers with canned air and good quality dusters
  • Check all connections and ensure nothing has come loose and no wires are frayed
  • If equipment is maintained in a small office, ensure the room is properly cooled
  • Review each camera and picture, is it positioned to see what you need it to see?
  • Clean every camera lens
  • Wipe down all camera domes (even dummy domes)
  • Clean Public View Monitors. If a monitor has a burned picture, replace it. Look at it during different hours of the day is there a time when too much glare hits it? If so, you may want to try repositioning it.
  • Check your video retention. If you aren’t getting at least 30 days follow up with your vendor to see about clearing space or optimizing recording. You may be able to set recording zones or sensors that will only record when movement in an area happens.

No one wants to think about a robbery, employee theft or shoplifting taking place in their store but it is something you have to be prepared for. Take care of your cctv by tuning it up so that IF the time comes when you need it you will have the video necessary to help police in their investigation to put the criminals away.

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How to Tackle Employee Theft and Shoplifting

March 13, 2017 by Leave a Comment

The big retail stores and thousands of convenience stores across the country try to find solutions to tackle shoplifting and employee theft.  The retail industry losses account to $42 billion every year, and it doesn’t seem to be stopping anytime soon.

Security  measures implemented and adopted by many retailers have given these stores some small wins, but overall the losses are staggering.  Inventory adopted by these small stores that are done in real time, and are working in conjunction with software that displays results to the management of these stores instantly,  are invaluable to the operation and profitability of the stores.  As a deterrent to shoplifting and employee theft, these operative measures are of tremendous help to the management as well.

CCTV cameras that provided a grainy image of the customers or perpetrators are a thing of the past.  Now, CCTV cameras provide a clear image of the individual that is easier for police officers and management of these stores to get a clear view of these people. Facial recognition software now provides solutions to these stores that were not available to them before.  And although trained personnel has to work in conjunction with these technological advances, the results have greatly improved over the years.

For more about this and other topics, follow the links below.

To stop a thief: Shoplifting is a daily battle for retailers

On any given day, more than $35 million worth of merchandise is stolen from retail stores across the country by shoplifters – amateurs and professionals alike – who steal clothing, jewelry, electronics and a host of other items, including food.

Some sneak quickly and quietly with the merchandise, others make bold getaway attempts.

In Tupelo, the retail and financial hub of Northeast Mississippi, the Tupelo Police Department gets hundreds of reports each year.

In 2014, TPD took 483 reports related to shoplifting, according to TPD Public Information Officer Chuck McDougald. Last year, that number fell to 260. So far this year, the department has taken 162 calls.

“Higher shopping volume days correspond to more shoplifting calls,” he said. “Those include weekends and holidays.”

As for the timing of when shoplifters are busiest, apparently they’re not early risers.

“Afternoons see an increase over mornings,” McDougald said. “Generally, it looks like the busier a store is, the more opportunities there are for someone to steal.”

For retailers like Reed’s, which has four department stores in the region, the key to cutting down on shoplifters is to make sure customer service is prioritized.

Are You Doing Enough to Secure Your Stores?

Theft and robbery continue to rise, but new technology and planning can deter.

NATIONAL REPORT — Whether it’s violent crime, robberies, shoplifting or employee theft, convenience stores have been dealing with store security issues for years. New technology is allowing operators to amp up prevention and react faster to incidents, but in many cases — in c-stores and the entire retail industry — the situation continues to worsen.

“I’ve been involved in the convenience store industry for 40-plus years and the risk of loss has not changed. The most worrisome is robbery, and as c-stores evolved into 24 hours, the violence level increased,” Chris McGoey of McGoey Security Consulting told Convenience Store News.

Robberies are up all-around, specifically in convenience stores, as the latest released FBI statistics show robbery up 16.8 percent in c-stores/gas stations from 2014 to 2015. Rosemary Erickson, researcher, forensic sociologist and president of Athena Research Corp., based in Sioux Falls, S.D., says this is the largest increase she can remember in all the years she has been studying crime. Erickson has helped NACS, the Association for Convenience & Fuel Retailing, develop many of its security resources.

 

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Preventing Shoplifting

March 7, 2017 by Leave a Comment

The National Association for Shoplifting Prevention agrees with the retail industry about the effect shoplifting has in all of us. Communities across the country lose the taxes they would otherwise collect from the items being stolen from stores to help social and outreach programs that could benefit those communities in the long run. Shoplifting is a crime that costs the retail industry $45 billion a year, and we as consumers have to pay higher prices to offset the cost shoplifting has in these businesses.

What we, as consumers and retail employees must not forget is that Profiling a customer upon entering a store is not legal, and we must not lose sight of that. Macy’s and CVS stores have had legal suits because of  profiling that have cost them millions of dollars. Assuming a poorly dressed person entering your store is a shoplifter, is assuming too much.  The NASP states that there is no profile of a typical shoplifter.  Men and women shoplift as equally.  Poorly or well dressed customers have the capability to shoplift from the store.

A recent article about ways to prevent shoplifting advises to monitor children and poorly dressed people, because they write“Teenagers are the most likely to steal from you. People that are poorly dressed are statistically more likely to be shoplifters as well”. According to The NASP 25% of shoplifters are kids and 75% are adults. Unfortunately they do not post statistics about how well or poorly those people are dressed.  If years of research from organizations like The NASP tells you that there is no profile of a typical shoplifter, it is distressing to find articles that tells you to target poorly dressed people with no data to back it up. If kids or teenagers are your main target, then you will be missing out the 75% of adults that actively shoplift.

Preventing shoplifting is not about targeting people of color, how well they dressed, or if they are teenagers or not.  People  from all walks of life steal, and some of them are repeated offenders with an addiction problem or other types of issues.  Preventive measures that allows you to monitor ALL people including employees, is the only smart solution to take for any retail store.  Prejudices or preconceived notions of what a typical shoplifter is can be detrimental to stopping shoplifting and employee theft.

Recent research suggest greeting customers as they enter the store is one of the best methods to prevent shoplifting.  Employees should also wander the aisles, but that does not mean targeting “poorly dressed” people. A well lit store, or a store that has shelves that are well organized can deter shoplifters from entering the store.  Shoplifting is an inevitable part of doing retail business, get to know your store, and offer preventive shoplifting measures without targeting specific people.

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Taking The Offense To Shoplifting

February 28, 2017 by Leave a Comment

Some shoplifters are violent. I follow these incidents and they seem to be becoming more frequent. The reasons why are many and there is plenty of blame to go around: State and local governments, courts and lax Judges, parents and even retailers themselves. Much of that is out of our control. We must keep violent and non-violent shoplifters from even entering our stores.

What is under our control is how we, the retailer, approach the shoplifting problem? First, you cannot be on the defense. We cannot play the defensive strategy any longer. You must go on the offense! Defense is putting up a sign like “no shoplifting” or some other weak response in place and hoping for the best. This includes a camera system. I cannot even count the number of retailers that have asked me why they still have a shoplifting problem when they invested in CCTV.  CCTV is a passive system; it does nothing pro-active.  CCTV is great for after the fact but even the dumbest shoplifter knows you do not have the staff to be watching all the time.

An EAS system like a Checkpoint System is a PROACTIVE system. It is working 24/7. It does not take breaks, vacations or let its mind wander or get distracted. A Checkpoint System protects your retail good at all times. The shoplifters know this and for the most part will be deterred by a Checkpoint System when they look in your doorway. 

If we deter shoplifters by going on the offense as they walk in, then we also reduce the chances for a violent encounter. Contact us today for information on your Checkpoint System and let’s go on the offense together.  

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THE IMPOSSIBLE ACT OF “SELLING YOUR WAY OUT OF SHRINK”

February 28, 2017 by Leave a Comment

I recently read over an article opining the phrase “sales cures shrink”. While the author touched on both sides of the coin, I found it interesting that in today’s retail climate, anyone would think that you can simply sell your way out of losses. Let’s cut to the chase here; we’re not bringing in 20% increases over last year, hell we’re lucky to come in flat to last year. Online giants like Amazon are eating up market share like never before and if brick and mortar don’t do something fast, sales will continue to slump.

Let’s break this down a bit further. Let’s say your shrink last year was 2% to your sales of $1,000,000. That’s a loss of $20,000 for the year, or about $57 a day. Taking that shrink number and dividing that into your loss per day gets you right at $2680. That means you have to sell an additional $2,680 on top of that $57 loss just to get to the break-even point. Understand this, you CANNOT stay in business if all you’re doing is breaking even. You just can’t. You need to turn a profit!

Being a realist here, there is no way that you’re ever going to sell your way out of shrink. EVER. It is a flawed philosophy and if you ever hear someone utter this crummy phrase, understand that whomever that person is, they have no idea what they are talking about. Unless you have some miracle business model and you’re bringing in money hand over fist, then “selling your way out of shrink” just isn’t an option. It’s a start…

Offsetting shrink takes a multi-faceted approach. Just as you can’t sell your way out of shrink, you can’t very well keep everything under lock and key, and it’s impractical to have the security devices on every single sku. If you’re trying to increase sales, you may be inclined to have more displays of merchandise. Copious amounts of data show that a customer is more likely to make a high dollar purchase if they have a chance to touch and feel the item. (Think sunglasses, hunting scopes, sports equipment, etc.) To sell it, they have to be able to touch it. For you not to lose it, you need to secure it in some manner. Once you find the balance of sales vs. LP procedure, you’ll find the winning formula for shrink reduction.

Proper security measures will only go so far to stop external losses. Internal theft accounts for an even bigger percentage of losses inside your store. Knowing who to hire, and whom you are hiring are both vital spokes in the retail wheel of shrink reduction. You need to go a step further and encourage a culture of honesty, integrity and ethics in your store. Employees should feel invested in your business, as that emotional attachment will likely deter an employee from stealing.

As with any problem, there are always a multitude of solutions to bring about positive change. Get away from a soloed approach to shrink and look at all the ways your losses may be tackled. Just as you would be foolish to believe that locking up all of your merchandise would stop theft, you’re of equal foolishness if you believe that sales are the cure all for shrink; and I personally, pity the fool.

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