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 1.866.914.256 – Atlanta Georgia