With the busiest shopping days of the year inching closer, retailers are in overdrive to make sure they have all the bases covered. While a high priority is placed on being able to handle the increased sales traffic, it should also be on preventing shrink or loss prevention.
According to the 2012-2013 Global Retail Theft Barometer, which was released this week, shrink levels reached a total of $112 billion in 2012. That represents 1.4 percent of retail sales on average.
When most people think about this aspect of owning a business, they immediately look at shoplifters and larger theft. However, there are a number of other ways that shrink can occur, which include administrative errors, improper inventory reporting and shipping problems. On top of that, employee training on POS equipment can ensure that every transaction is handled properly.
“You have a lot of turnover at some of the retailers. We found that when you don’t have that turnover and you have a good manager in the store, the shrink falls,” Dan Reynolds, vice president at Checkpoint Systems, told Security Info Watch. “But, when you have higher turnover, it is harder to instill the disciplines and focus on store shrink.”
This can also mean it is time to upgrade POS software and inventory systems. By using the latest technology, business owners are able to keep more accurate and real-time records of all products on hand and in route. This helps solve any problems quickly before they spiral into larger issues that increase shrink.