What can I do to reduce shrinkage in my store? Where can I find effective loss prevention devices that are affordable? Is it possible to have 0% shrinkage in my store?
If you’ve found yourself asking those questions and similar ones, you’re not alone. Retail shrinkage includes everything from theft, product damages, administrative errors, or anything resulting in inventory with fewer items on hand than recorded. When the physical items don’t match the system, then you take a loss on those items. So it’s no surprise that business owners are constantly searching for solutions to reduce shrinkage in retail so they can protect (and ultimately increase) their bottom line.
So, what can you do to secure your merchandise? This article will educate you on several loss prevention options to tackle specific shrinkage challenges in your retail store.
Shrinkage in Retail – What to Know
Identifying the loss contributors in your business is the first step toward securing your profits. There are many options owners can choose from when they’re ready to combat shrinkage. It all depends on the time and resources available, from hiring a team of security guards to installing an EAS system to investing in advanced technology. And with protecting inventory from both the digital and retail fronts, time is of the essence.
Where to start?
If you’re new to loss prevention and want to learn more about your options, read this article on why retail loss prevention is essential.
5 Retail Shrinkage Solutions
Since retail shrinkage includes anything that results in unsellable inventory, that can consist of numerous scenarios. Here are five of the most common shrinkage problems with solutions.
If you want more knowledge on protecting your business, check out our other loss prevention articles on combating shrinkage in the news section of our website.
Problem: Frequently Stolen, Easy to Conceal Merchandise
Cosmetics, OTC medications, and personal care items are some of the easiest to steal due to their size. Unlike their size, their retail profit is anything but small, so protecting these items is necessary for protecting your bottom line.
Problem: Accurately Identifying and Tracking Inventory
Maintaining accurate inventory data is needed for product ordering and monitoring theft numbers. Unfortunately, this can often become a time-consuming task for employees.
Combining RFID devices with an EAS system is one way to monitor items once they’re on shelves for sale. Each RFID device can be programmed for your needs, including setting the EPCs for identification and tracking.
Problem: People are Consuming Products in the Store
You might have empty packaging throughout your store if you sell consumables (energy drinks, candy, liquor, etc.). This theft is difficult to monitor because it only takes a person a few moments to open the package and consume the item.
- Bottle Security Collars
- Bottle Security Caps
- Bottle Boxes
- Energy Drink Caps
- Ice Cream Pint Protectors
Problem: Difficulty in Monitoring High Theft Products
To maintain the shopping experience, keeping products on open display is essential. However, how do you monitor those high theft items when employees are busy caring for customers?
- Stoplock for Pegged Merchandise
- Pusher Systems
- Shelving Systems
- Swing Gate Protection
Problem: People Attempting to Wear Clothing Out of the Store
You provide your customers with a fitting room so they can confidently purchase their clothing. Still, some take advantage of the opportunity to wear the clothing right out of the store. You’ve added tags to apparel to try to reduce the theft, but what else can you do?
Benefit denial products are security devices that destroy a product if anyone attempts to remove it without the proper removal device. They come in several options to fit a variety of clothing, accessories, designer items, and shoes.
Protect Your Bottom Line and Reduce Your Shrinkage!
At Product Protection Solutions (PPS), our team is a powerful ally to have at your fingertips! Our knowledge and experience in applying AM, RF, and RFID technologies throughout retail stores can significantly reduce your retail shrinkage concerns.