Shrink is one of the biggest problems every retail business faces. No company wants to be the victim of theft, but the fact is it is unavoidable. Because of this, prevention needs to be the number one priority.
In a recent article from Vend, Francesca Nicasio examined the four main ways that shrink can happen. It is important to know what these are, because the National Retail Federation is reporting that this amounted to $34.5 billion in losses annually.
The main ways that this happens is through shoplifting, return fraud, employee theft and vendor fraud. This is something that companies face on a daily basis but can be prevented with good customer service, attentive associates and proper policies. However, this is only one part.
Shrink can also happen through processing errors. If back of house improperly handles a delivery or an item is not fully processed at the time of sale, while not intentional, it is still considered shrink and looks bad for a business.
Companies can also help improve their overall operations by having the right POS software and reporting system in place. While keeping a watchful eye will certainly help stop shrink before it happens, a real-time reporting system that can handle an omni-channel approach is the best way to recognize and stop shrink early on.
By deploying a point of sale and inventory system that integrates every aspect of company operations, businesses will be able to improve overall operations while also keeping better track of where every product is and identify potential problem spots before they get out of control.