Retail loss comes in many forms. From the associates taking merchandise to distribution center mis-ships or mis-directs, losses occur. However, one form of retail loss that many companies seem to overlook is that of vendor fraud. Especially for those of you that sell food items. In my career, I have seen many instances where for years store management has disregarded the fact that vendors do contribute to losses in their stores, whether intentionally or unintentionally.
As an example, a general merchandise store I worked for always seemed to have an issue with the items they sold in the cooler section of the store. This includes a variety of sodas, soft drinks, beer and other beverages. Retail loss being huge in this particular store and this area contributing the most retail shrinkage , I looked at it closer.
The manager on duty, against the company’s policy, was simply blind receiving shipments of beer into their store. The vendor delivering the merchandise showed an invoice for 200 cases of beer, the manager would simply sign the invoice and send the vendor on his way. Talk about retail loss exposure. The next visit from this vendor, I did an audit. 25 cases of beer were missing from the shipment. I walked out with him to his truck, and literally found 25 cases sitting in the back of the delivery truck, almost as if he intentionally set the beer aside.
Deliveries in and out of your stores pose a huge potential from retail shrinkage . It is vital to the success of your business that you inspect every shipment of merchandise from vendors coming into your stores.
Later, after inspecting the cooler box, we found several empty beer cans contributing to retail shrinkage . We installed a covert camera, and within two weeks time, this same delivery guy was caught on camera guzzling a couple cans of beer after he stocked the shelves.
For more information about retail shrinkage visit us at retail loss or call 1.866.914.2567 – Atlanta Georgia