If you are suffering from retail shrinkage problems you may feel like you have no control.  We will take a look at a few ways to get control into your hands to stop those issues and start making more money.

You probably have a “security system”.  This is a burglar alarm that you only arm when you are not there / store is closed.  To add to this basic level of security against burglary, consider installing motion detection light outdoors.  There are products designed for this, such as that offered by TAKEX.  Great deterrent that will hopefully keep thieves out.  You may be able to connect to your burglar alarm so that if the sensor is triggered it will set off the alarm and dial the central station.

During business hours is when most  retail loss occurs. And over 42% of your losses (based on industry average) are by employees.  Employee theft can be much more fatal than shoplifting because employees have access to sensitive info and typically steal ten times per occurrence more than a shoplifter.  Look for a loss prevention professional to hire for an audit.  These pros will identify vulnerabilities and help you set up policies and procedures to nip this issue in the bud…and might even identify an issue with an employee.  At that point they can help you through how to process the employee theft investigation etc… to get the best possible end result for your business and good employees.

Consider a Checkpoint systems retail shrinkage control system.  This system tags merchandise with security devices that come in a variety of sizes, shapes and even paper labels.  The devices will interact with sensors at doorways and actively alert when there is a theft in progress.

For more information on how to develop a loss prevention plan, visit: retail shrinkage control

 

 

Retail shrinkage is a growing problem around the world today. Retailers are always looking for the best solution to protect assets and boost profits. One of easy and most obvious is adding anti shoplifting equipment like Checkpoint Security Systems.

A growing chain of supermarkets in the south learned the value of a Checkpoint Security System after recently opening a new store and experiencing retail loss as high as 10%. The store management had no clue how or why these numbers were so high, but the corporate office wanted, needed, demanded answers.

Loss Prevention Consultants worked with the store team to develop shrink reduction efforts in store and recommended several tools to help combat the retail loss . Of those solutions, the Loss Prevention Consultants recommended the first step to control loss was to install a Checkpoint Security System. Shoplifting was a large portion of the overall store’s retail loss and had a huge impact on the morale of the store.

Daily the store management team was told of customers that come into the store and “shelf sweep” entire sections of the store, then get out of the store almost completely unnoticed. Checkpoint Security Systems are designed to prevent customer theft by being an obvious, audible and conspicuous deterrent to reducing acts of shoplifting.

The store decided to go with a Checkpoint Security System. The program was rolled out and Checkpoint labels were placed on merchandise deemed high loss. Additional anti theft devices were placed on areas like liquor and some electronics. The Loss Prevention Consultants also recommended using a loss prevention agent to help monitor customer theft activity as well.

As time went on, the loss prevention program created by this team of Store Management and Loss Prevention Consultants should a dramatic return on investment. Within the next inventory cycle, retail shrinkage was cut down to 3.3%, a dramatic decrease in one year. A large portion of this reduction was directly related to the installation of a Checkpoint Security System.

For more information about retail shrinkage visit us at retail loss or call 1.770.426.0547 – Atlanta Georgia

It is sometimes interesting to look at the items that a shoplifter may choose to steal.  My team recently apprehended a shoplifter that took a lot of what you’d expect to see taken from a large retailer such as ours – makeup, cologne, etc.  She also took Kool-Aid.

Retail shrinkage is unpredictable.  While we can theorize on what a potential shoplifter may want to take from your business, there is no way to be 100% sure what will draw the attention of a thief.  That is why it is imperative to have good loss prevention procedures and training in place – to boost those profits and reduce the retail loss .

Retail shrinkage is also a very broad descriptor of loss.  It is, essentially, anything and everything that can possibly create a loss to your business.  This can be employees, vendor errors, shoplifters and paperwork errors.  Anything that creates a loss of profits by lost merchandise or assets.

Experts in the field of loss prevention can analyze your business and its practices, and develop plans to narrow that broad spectrum of retail shrinkage into a workable concept for you.  Once the type of shrinkage is narrowed down to what is occurring in your business, then you can begin to combat this retail loss , one shoplifter, employee thief, or dishonest vendor at a time.

For more information about retail shrinkage or retail loss contact us or call 1.770.426.256 – Atlanta Georgia

Retail shrinkage is not just the loss a business incurs from the merchandise that is shoplifted by customers.

I recently interviewed an employee that was accused of underringing – intentionally allowing a customer to leave her register without paying for all of the merchandise.  This cashier underrang for just one customer, a friend of hers, and it added up quick:  nearly $1000 in less than three months.

The sad thing is that the loss could have easily been higher.  What if she had multiple friends that she was doing this for? This type of retail loss is common place, and your profits fall victim.

Combating retail shrinkage has to be a priority for the business owner that wants to be profitable.

The amusing thing about this case is that the cashier did not feel that she did anything wrong.  She explained that she did not profit from this “theft”, and that she only did it because her friend asked. She assured me that she would never steal.  She admitted she could just not tell her friend “no” when the friend asked for this favor.

Unfortunately, this is not an unusual story.

Employees that cause retail shrinkage can often justify the loss that they are creating.  And that justification often sounds bizarre to us honest folk, but it is a justification nonetheless.  Justification that can overshadow any guilt or regret an employee might feel for creating a retail loss for your business.

For more information about retail loss contact us at retail shrinkage or call 1.770.426.256. Atlanta Georgia

Most business owners understand that retail shrinkage is part of doing business, but many do not realize what actually causes the shrink that they are experiencing.  Knowledge about retail loss helps the business owner battle this profit-eating monster.

A major contributor to retail shrinkage is employee theft.  Many business owners think that shrink is just caused by shoplifting, but studies have shown that employee theft will actually cost the business more lost profit than shoplifting.  Employee cases of theft tend to be higher in value per occurrence than shoplifting.

There are ways that you can help prevent employee theft in your business.  Make sure you have an understanding of your inventory levels so you know when something is missing.  Stop into your business unannounced and at later hours.  Also, do not allow your employees to keep their purses or coats in their immediate work area.  Provide them a locker or an area where these items can be kept so that the opportunity to conceal merchandise is reduced.

Another type of retail loss is employees that help customers steal from your business.  An employee that has access to the cash register might not ring up all the items that the “customer” is paying for.  This is called “underringing”, and is a type of theft that can be difficult to detect.

Watch for customers that loiter near employees, or seem to wait for a certain employee to be available to help them.  These customers and employees may also appear nervous and may be watching other employees or managers.

Retail shrinkage will happen, but to what extent depends on you, the business owner.

For more information contact us: retail shrinkage or retail loss or call 1.770.426.256 – Atlanta Georgia

A business is not a business without retail shrinkage .  In today’s society business owners have to have their heads up out of the sand and face this unfortunate reality.

However, retail loss is not something that a business owner just has to accept.  There are solutions to this retail problem.

According to an Ernst and Young Study of Retail Loss Prevention, retail shrinkage costs retailers more than $46 billion every year. The majority of that loss is attributed to employee theft.  While shoplifters are more frequent in a business setting, the dollar amount per instance of theft is much higher for employees of a business.  Employees can steal more before being caught, because they are trusted.

Retail loss affects everyone.  Consumers have to pay higher prices to counteract the impact of retail shrinkage on a business.  If this type of shrinkage could be eliminated, businesses would be able to price their merchandise much lower.

Solutions to retail shrinkage can be found in loss prevention experts that know how to go into a business and analyze it’s every day business practices.

Loss prevention associates can identify shrinkage and develop plans to combat retail loss . Recoup your lost profit through a reliable loss prevention program, developed for your business to reduce retail shrinkage .

For more information on retail loss contact us at:  retail shrinkage or call 1.770.426.256. – Atlanta Georgia

In a perfect world, there would be no such thing as retail loss , shrinkage or theft.  And there would be no need for loss prevention, asset protection, employee theft investigations and security measures.  Businesses would not incur huge losses.  But, unfortunately, theft and loss in the retail environment is very real, and the issues must be dealt with proactively.

Do we live in a world full of thieves?  It would be nice to think that we do not, but there are a few bad apples among us.  There are plenty of people that a business may come in contact with that have every intention of gaining something for nothing – be it shoplifting, employee theft, or vendor fraud.  Who can argue with the possibility of a 100% profit margin?  That temptation alone often overpowers any sense of morals or decency that would encourage an individual not to steal.  This is especially true in tough economic times, as individuals struggle to make ends meet.  The temptation of a quick buck, or acquiring something desirable without spending any money, can often be too great to resist.

Businesses can combat retail loss in a variety of ways.  Training employees to know what to look for in a potential shoplifter is important.  Shoplifters do not want attention – so provide it!  An understanding of organized retail crime (ORC) is also important for managers and loss prevention professionals.  ORC thieves are involved in their own business of acquiring merchandise for resale.  Consider these groups competition, in a sense, except that your business is their supplier.  And you are supplying the merchandise free of charge.

Retail loss is an unfortunate part of doing business, but does not have to be the death of it.

For more information about retail loss or retail shrinkage contact us at retail loss or call 1.770.426.0547 – Atlanta.

In the world of retail loss and retail shrinkage in Atlanta this story that was recently published in the AJC really hits the nail on the head.

Arielle Kass, October 7, 2010
 
Sharla Jackson can rattle off a list of stores that have closed due to smash-and-grab crimes over the past three years.

Since July, a new state law has imposed tougher penalties on those convicted of smash-and-grabs, in which thieves bust through windows, walls, roofs or doors then snatch merchandise like jeans or flat-screen TVs to resell. It comes as the number of such crimes is the highest it’s been in years said Jackson, senior assistant district attorney in the Fulton County district attorney’s office and a member of the retail theft task force.
 
With 132 smash-and-grabs so far this year, the count is already ahead of 2008, when there were 130 instances in metro Atlanta’s five biggest counties.  Last year, there were 119 smash-and-grabs; in 2007, there were 97, according to the task force.
“They do it so quickly, it makes it difficult for them to be apprehended,” Jackson said. “They steal thousands of dollars of merchandise in a very short period of time.”
 
The latest happened Tuesday at Urban Outfitters on Ponce de Leon Avenue at North Highland Avenue. The chain declined to comment.
 
Metro Atlanta saw more than 300 incidents from 2007 to 2009, said Angelica Rodriguez, senior director of loss prevention for the National Retail Federation. The losses totaled more than $3 million, and Rodriguez said because not all incidents are reported to the organization, that is likely just the tip of the iceberg.
 
A new state law that took effect in July defined the crime and lengthened minimum sentences, ensuring that juveniles who are arrested for smash-and-grabs causing at least $500 worth of damage are subject to up to five years of custody. Adults who solicit juveniles for the crime serve between one and five years of jail time, and minimum sentences for participating adults were extended to two years.
It is still too early to know if the new laws will deter the crime, Jackson said, but she noted that the issue is a problem outside Atlanta’s city limits.
 
Smash-and-grabs happen “As far north as Dawsonville, up at the outlets . . . It’s not just an Atlanta issue, it’s an issue that affects so many businesses.”
Rodriguez, of the National Retail Federation, said thieves have moved on to department and electronics stores as boutique owners have enhanced security. Now, they also often target ATMs in grocery and convenience stores.
 
House of Adrene, on Peters Street in Castleberry Hill, had been hit several times at its old location, manager Erica Morton said. Since moving down the street in March, the store’s owner has taken measures to prevent the thefts, including locking up the denim that was a frequent target.
 
The crimes are worse in metro Atlanta than elsewhere, said John Heavener, president of the Georgia Retail Association. Jackson said that is because Atlanta has a large retail concentration and is near several highways. The stolen property can show up at flea markets, in online stores or on the street.
 
Small business owners don’t often have large security budgets, Jackson said, and are selling inventory so they can buy new inventory with their earnings. When those items are taken, they can’t pay to replenish their stock and repair the damage. Retailers hit more than once may be dropped from insurance, and Jackson said it can be impossible for a business to stay open.
 
“It’s a huge deal for retailers,” she said. “In a poor economy, you don’t want to have to pass those losses on to customers.”

If you are a retailer do not just sit back. Get involved. Join the Georgia Retail Association (GRA) and make sure your voice is heard on the smash and grab epidemic that is occurring. Prevent retail loss and retail shrinkage . You never know your store could be next.

For more information about retail shrinkage in Atlanta contact us at retail loss or call 1.770.426.0547