Here are some articles written on suggested and actual methodologies used to reduce shrink.
Proactive Loss Prevention
It’s good news that retail theft rates have decreased. However, shrinkage is still a multi-billion dollar problem. The University of Florida, in collaboration with the National Retail Federation (NFR), conducted a National Retail Security survey earlier this year, which concluded that employee theft, shoplifting, administrative errors and supplier fraud in 2011 was $34.5 billion worldwide. Employee theft and shoplifting combined represents almost 80% of the problem.
An article in Security Today, written by Wayne Jared, states that shrinkage in the US is estimated at $15 billion, an “enormous margin eater”.
The article offers suggestions on taking a proactive approach to loss prevention: Consider solutions that identify theft in real time and that use video analytics combined with security footage and office systems to harness business intelligence. Creating operational efficiencies is another approach to taking proactive steps to minimize shrinkage. Analyzing day-to-day operations provides store owners with the opportunity to effect positive changes on profits.
“There’s no business too small to find the best techniques to reduce shrink”
In the NFR’s blog, Retail’s BIG Blog, Tony Fontana writes about loss prevention experts sharing their consensus on the best methodologies they used to battle shrinkage with minimal resources. They agree that they find the methodologies they used to battle shrinkage involve: detailed suggestions on exception-based reporting, employee surveys on sales and operational procedures, training and education, unique approaches, and “breeding a culture of honesty.”
How do your methods to reduce shrink compare?