Retail loss prevention involves several strategies to protect your business from theft, shrinkage, and fraud. It can include product protection devices, EAS systems, internal company procedures, and more. Since retail shrinkage is an ongoing concern for retailers, solutions are available to help prevent your losses. 

Continue reading to learn how to use loss prevention methods to reduce retail shrinkage for your business. 

3 Types of Retail Shrinkage Problems with Solutions 

Retail shrinkage occurs when the inventory data doesn’t match what’s physically on hand in the store. The good news is that you can take action to reduce those losses and put money back into your bottom line! Here are three shrinkage problems with potential solutions. 

1. Data Errors 

Human error can occur in a few different ways. One way is when someone enters inventory numbers into your system, they accidentally type the wrong number. You can implement an inventory management system using RFID devices to prevent human error.

Another error is when a vendor delivers less than the order amount, and the receiving team doesn’t catch the missing products. Make sure to receive the record shipments as soon as they arrive and before the vendor leaves. 

2. Internal and External Theft 

When hiring employees, conduct background checks, call references, and install security cameras by registers and stock rooms. These solutions will help to lower internal theft occurrences. 

To lower shoplifting incidents, you can use security devices, install an EAS system, and create an open store layout removing any blind spots. 

3. Product Damage 

This happens when merchandise is damaged inside the store, whether by an employee or a customer. To prevent damage, remove clutter from aisles, display fragile merchandise on higher shelves, and build product displays in an open space (not in aisles). This will help to lower the chances of anyone bumping into merchandise. 

How Can Loss Prevention Devices Protect Your Business? 

Loss prevention products can include tags, safes, quad wraps, smart shelf technology, and any device that secures a product without locking it up in a case. 

Additional benefits include: 

  • Adding an alarming element so if anyone attempts to remove the device, the alarm sounds
  • Reusing it for 5+ years 
  • Providing full or partial item coverage 
  • Working with existing planograms 
  • Combining devices with RFID 
  • Allowing for open merchandising 

It’s important to note that locking merchandise inside a case can sometimes lower overall sales and negatively impact a customer’s shopping experience. So, compare the pros and cons of selecting security devices and cases. 

Loss Prevention Solutions for Shrinkage

In our previous article, Inventory Theft Prevention Devices for Stronger Prevention, you can learn more detailed information about specific and universal loss prevention devices.

Are You Ready to Reduce Your Retail Shrinkage? 

Take the next step towards reducing your losses with Product Protection Solutions (PPS). As a veteran-owned company, we aim to help you protect your profits with prevention products, technology, and customizable solutions. Contact our team so we can work together to find the best solution for your loss prevention goals. 

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