Shrinkage in retail is a massive problem and internal theft, shoplifting, administrative and supplier fraud cost retailers over $123 billion globally (according to the Global Retail Theft Barometer 2015) with the first two accounting for more than 75% of that total.
Faced with this staggering figure, it makes perfect sense for retailers to place shrinkage at the top of their to-do list.
Thankfully preventing shrinkage has been made easier with technological advancements - there have never been as many solutions available that can increase your security and protect your business. Sure, protecting your business takes an initial investment, but it’s one of with perhaps the greatest return. By investing in your cash management you boost the productivity, efficiency, and profitability of your business - while preventing shrinkage.
Preventing internal theft
Internal theft is one of the biggest problems that businesses face when it comes to retail shrinkage. Over 39% of theft-related incidents in retail can be attributed to employees according to the Global Retail Theft Barometer 2015.
Clearly, staff members can take advantage of having easy access to your cash and merchandise. Internal theft has negative effects on the profitability of your business while also negatively affecting employer-employee relationships and the overall workplace environment.
One of the best ways to reduce internal theft is through increased employee accountability – setting clear expectations and guidelines for conduct and procedures. Creating and implementing policies and procedures for your cash management processes will immediately boost staff accountability and reduce theft.
All of your policies should be clearly outlined and all staff should receive proper training - ensuring that they are aware how each policy should be implemented. Following up with employees after they have received training to ensure that they understand and to enforce your new guidelines is also vital to creating a culture of accountability within your business.
Preventing external theft
While improving employee accountability can reduce internal theft, external theft can be more difficult to pin down.
External theft can be attributed to a number of different factors that result in loss of merchandise or cash. Cash related incidents might be from theft or counterfeit currency. Regardless of how external theft affects your business, the required action is to increase your security.
When it comes to cash, it’s important to ensure that you are making use of effective cash management techniques throughout your company – perhaps make an investment in automated cash management technology.
Currency recycling machines and smart safes are designed to protect your money from theft by providing physical and technological safeguards. Both machines involve a system of barriers that separate your cash from your customers.
Here’s what you can do
Preventing shrinkage in retail is a team effort and all staff members from management to front-line workers must work together to develop a culture of loss prevention. Only through working collaboratively will we reduce that $123 billion global bill to retailers.
Introducing cash management technology to your business gives you reliable and effective support to thwart both internal and external theft - it protects your business’s cash guarantees your security, accuracy, and efficiency.
Start by evaluating how shrinkage affects your business and then find the best solutions for you - there are countless options available to help your business become safe and profitable.