Retail shrinkage and retail loss are one in the same. No matter which term you use, they equal the same… Bad News for the business owner or manager.
I’ve been part of many inventories over the years and have seen lots of ways retail shrinkage affects business. I have to say, the losses all seem to occur the same way at every company.
There can be a solution, but management must be willing to incorporate specific policies, procedures and create a proactive loss prevention environment. Retail shrinkage will ALWAYS happen but it can be controlled and kept to manageable levels. For this to occur, management MUST incorporate some sort of retail loss prevention program and make them accountable for a large portion of the inventory shrinkage. This will encourage the program to dig deep to the root causes of retail loss and build a solid plan or shrink reduction strategies.
In most companies, Retail loss prevention is the department to turn to when you store is having inventory shrinkage or retail loss. As specialists, they will and should develop a program to help counter the retail loss a store may be experiencing. Focusing their efforts on employee theft investigation, shoplifter apprehension, operational accountability audits and front end controls, retail loss prevention offers many solutions. Now, for a retail loss prevention program to be successful, they must have and maintain a solid partnership with their operations business partners. This includes onsite managers, corporate level managers and business owners.
If a plan to counter retail shrinkage and retail loss is created, then a business can focus on what is most important… boosting profits. Keep your profits and seriously consider creating or incorporating a retail loss prevention program. After all, that’s why most businesses exist, to make a profit.
For more information visit us at retail shrinkage or call us at 1.866.914.2567