Retail stores experience a substantial amount of loss every year. Retail loss prevention has become a hot topic in the boardroom and the back-room. Considering the current economy, consumers need lower prices and affordable goods in order to maintain their life-styles. Unfortunately, retail loss passes on to the consumer, as companies raise prices to keep up with the losses they are incurring.
Various methods of loss prevention allow retailers to reduce "shrinkage," and increase profits, thereby benefiting both seller and buyer. Technology allows the business owner to view his or her precious merchandise with various scales of video and monitoring equipment, depending on their budgets. The implementation of this equipment has given many large and small businesses the ability to stand strong against retail loss, thereby allowing them to pass the savings along to the consumer. So how do you accomplish retail loss prevention and what steps can you take?
A popular methodology used by businesses consists of employing closed circuit television to monitor both customers and employees. This type of setup typically allows the owner or manger to monitor the entire store from one command center. The cameras require mounting around the store and may take on the look of a store fixture or be completely viewable to the public, depending on whether the objective is catch the perpetrator in the act, or forestall the act itself.
Technology provides many alternative ways for retailers and other businesses to protect their stores against both external and internal loss. Many companies show an interest in equipment that allows them to keep an eye on their products without infringing on the public's right to privacy. This would be an example of utilizing "plain-site" cameras; Privacy can't be infringed if there is no expectation of privacy. Money invested in the system is normally recovered quickly through the reduction of loss. Profits grow, resulting in price-to-value equalization. The security provider has demonstrated value to the retailer, who now has superior control inventory loss.
Both employee theft and customer theft are minimized after implementation of a detailed prevention plan to eliminate retail loss. "Pin" camera placement in areas that view fitting rooms, bathroom facilities and other, more private, areas of the store including warehouses, have helped increase the apprehension of shoplifters and dishonest employees. Such systems also reduce the cost of fraudulent work injury claims.
Retail loss prevention provides businesses of any size the ability to take control of the problem and limit theft to a level that doesn't endanger the business as a whole. Owners that wish to view their business from home, or an area outside of the store, can access the monitoring system by adding an additional screen at a secondary location, thus allowing remote monitoring.
Another positive aspect for the business owner is that insurance companies take into account security systems of this type when setting premium rates. Just as with cars, increased security equates to lower premiums.
It is manifest that a properly designed and monitored closed circuit television system provides many cost saving values, from reduction in insurance premiums to savings realized from the deterrence of "shrinkage" due to dishonest customers and employees.
There are many lawbreakers who are simply amateurs, while others are skilled criminals and groups that target particular locations, most often large chain stores. Many people feel that large companies will not miss the loss, but the reality is that you as a consumer will pay more for items.
While much of the retail industry claims that shoplifting is the biggest cause of excessive costs, employee theft or fraud is the cause of an astounding 50% of the loss and can cost retailers on average $25 million a day.
Most shoplifters rationalize that store merchandise is over-priced and only benefit the owners and executives of the company at the shopper' s expense. The reality is that you, as the consumer, will pay more for merchandise as the retail outlet makes up for their loss. Shoplifters will eventually damage the targeted retail store's bottom line and increase their price points causing consumers to shop elsewhere.
To protect yourself from retail loss, it is important to understand the different types of shoplifters. There are those that simply do not wish to pay for items, others that get a thrill from stealing; some need the merchandise and lack the money, and others who steal merchandise to sell again for profit.
There are also extreme cases where people fake shoplifting to bring legal action of false accusations against the store owner. There are also political shoplifters that steal merchandise to produce economic damage to owners or store managers. Shoplifters can also be store employees and security personnel that steal internally from the company that they are employed by. Part of retail loss prevention is monitoring the store from these illegal activities.
Merchants and store managers must follow several rules when performing an internal arrest and detainment. You must see the suspect enter the display area, witness the theft actually occurring, see where the suspect has concealed the item, and you must see the person leave the store without paying.
Many merchants fear lawsuits by people that feel they were falsely accused. Retail loss prevention methods help aid merchants and store managers in ensuring the store is not losing valuable merchandise and opportunity for profit.
Often times retail stores place phony shoppers in areas throughout the store to browse the racks and monitor people that are shopping. This is a great way you can protect your merchandise and ensure that people that may have been trying to steal from actually completing the task.
You can also use uniformed guards and exit inspections to deter shoplifting and to monitor people coming in and out of the stores. There are also many floor attendants that are taught to greet, follow, and offer help with their shopping experience. It is important to also teach your employees and personnel to also monitor the store for possible shoplifting opportunities.
Many stores also have locked merchandise cabinets for expensive or demand products, and require shoppers to purchase that merchandise before leaving that department. Many store employees, managers and owners have certain powers of arrest where they can detain people that you feel are unlawfully taking merchandise. In this case, merchants can do a limited search of packages, handbags, and other property if they believe they contain stolen merchandise. This ability helps merchants feel like they can truly work on retail loss prevention techniques that deter the crime in the first place.