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Preventing retail shrink requires a multi-pronged strategy, whether your store is fighting shoplifting, staff theft, or miscellaneous loss in the supply chain and administration.
A retail shop may prevent theft, fix mistakes, and then identify areas that require further attention by looking at this strategy as tiered.
So, starting at the product level and working our way up to the larger retail store, here's a look at the five levels of loss prevention.
Level 1: PRODUCT SECURITY
Shoplifting is the most common cause of retail loss, and the simplest approach to prevent it is to prevent it at the product level.
That's where measures like electronic article monitoring (which includes security tags, labels, and antenna) and lockable displays come in, as they safeguard particular objects that are likely to be stolen.
The delicate balance between security and an appealing environment must be carefully handled here. That implies products should be properly safeguarded with the necessary label or tag for the task, as well as the appropriate lockable displays that stimulate consumer contact.
Meanwhile, EAS isn't something that merchants can just turn on and forget about. The system should be checked every now and then to ensure that the proper strength tags are being used and applied.
Level 2 – LAYOUT AND DISPLAY
The architectural design and lighting of a business, as well as how a retailer displays things, all influence how well criminals can get around security and how likely a store is to be targeted for theft.
Stores should be well-lit to avoid dark, inconspicuous areas, have a clear line of sight from the POS across the floor, and be maintained clean and tidy.
Staff can better manage stock in a neat, organised retail shop, and this line of sight from the POS allows them to keep an eye on the floor.
Level 3 – TRAINING AND STAFF
Both shoplifting and employee theft may be reduced with good recruiting practises and frequent staff training. Prior to induction, all employees should be checked, and they should be instructed on what to look out for when it comes to stealing.
Simple customer service procedures like welcoming and greeting clients have been demonstrated to prevent theft and appreciated and respected employees are significantly less likely to steal from their employers.
Good training and procedures such as inventory counts, and stock reconciliation also aid in reducing administrative errors and recognising supply chain concerns.
Level 4 – SURVEILLANCE
Surveillance, such as CCTV and the hiring of loss prevention specialists, aids in the protection of a retail outlet on a store-by-store basis. This degree of loss prevention deters would-be thieves from committing a crime while also assisting in the detection of stealing or theft.
It can also be beneficial in spotting patterns, such as locations of a store that are more likely to be targeted for stealing and persons who act suspiciously before a prospective crime.
Level 5 – ANALYTICS
Traffic counts, inventory management, employee rosters, and sales records are all examples of analytics that provide a thorough picture of what's going on within a business.
These may then be used to pinpoint periods when a theft is most likely to occur, things that go missing the most regularly, or shifts when cash registers are running low or excessive returns are being made.
This information is crucial in evaluating where loss prevention tactics in a shop need to be strengthened.
Then, to better secure their shop, retailers can go back through the tiers of loss prevention.
Additional resources:
https://www.shopify.com/retail/loss-prevention-retail-shrinkage
https://losspreventionmedia.com/loss-prevention-and-the-bottom-line/
https://www.indeed.com/career-advice/career-development/loss-prevention-examples
https://www.vendhq.com/blog/loss-prevention/
