Reducing inventory shrinkage will boost profits big time

 

Retailers face  inventory loss / inventory shrinkage every day and battle with how to reduce it.  There are several ways to reduce inventory loss / inventory shrinkage which include a balance of both installed technology and written company loss prevention procedures implemented by personnel.

A simple “hello and welcome” to every shopper while looking them in the eye will reuduce shoplifting.  Ameteur and impulsive shooplifters will not steal according to studies when they feel they have been recognized.  The two magic words that reduce shoplifting / inventory loss / inventory shrinkage are “customer service”.  Shoplifters hate customer service and will leave empty handed, and will not likely return.

Installing cameras are thought to be a way to control inventory loss / inventory shrinkage however it is a passive solution.  Only the recorded event will be helpful if you know when/ where to look for it to be used as evidence in prosecuting thieves or employees stealing.

Installing a EAS system, electronic article surveilence system will reduce sholifting losses by as much as 70% as proven recently by Price Waterhouse Coopers study of a major supermarket chain.  Checkpoint systems is the leader in EAS systems.

The University of Florida’s Retail Security Survey reported that the average value of a shoplifting incident is $256.  At a 2% net marging the retailer would have to sell $12,800 to generate $256 of profit to replace the stolen goods.  Stop that theft from happening and all that money hits the bottom line net profit margin.

For more info visit inventory loss / inventory shrinkage 

Posted November 13th, 2010 by Staff Writer and filed in prevent theft

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