The 2020 National Retail Security Survey showed that theft, fraud, and retail shrink losses totaled $61.7 billion in 2019. This growing trend hasn’t slowed down, even with 2022 only a few weeks away! For all supermarkets, fashion outlets, and retail stores, if you haven’t maintained (or even began) a loss prevention strategy, now is the time to start.
There are many cost-effective solutions, policies, and processes you can implement that can help to ward off the increasing theft. Review our top ten retail loss prevention best practices list below to learn how you prevent shrinkage and secure your bottom line.
Benefits of Loss Prevention Practices and Services
Some companies have an entire department dedicated to loss prevention solutions, and others have a single person responsible for it. The good news is that no matter your size, there are practices and services that can help you. If you’re unsure why you should invest time and money into loss prevention, here are some benefits you can expect.
- Reduces losses from short term and long-term shoplifting
- Improves inventory tracking
- Increases employee focus selling and less on theft monitoring
- Prevents out-of-stock or overstock situations
10 Retail Loss Prevention Best Practices
Here are ten retail loss prevention best practices that you can begin to implement that require minimum to no upfront costs.
#1 Keep Customers a Priority
Don’t become so focused on preventing and discouraging theft that the customer’s shopping experience suffers. Many loss prevention solutions are available that allow for open merchandising and don’t require staff to open and close cabinets.
#2 Maintain Current and Exact Inventory Data
Correct inventory counts allow you to make faster, more accurate business decisions. To manage inventory counts, you can use:
- Regular cycle counting in-store
- Smart-shelf technology
- RFID security solutions
#3 Set Up a Checks and Balances System
This system ensures staff is held accountable and reduces internal losses. For instance, one person shouldn’t be tasked with sales and reconciling cash.
#4 Implement Loss Prevention Policies
Creating and reviewing these policies will help develop a unified goal among staff.
#5 Correct Losses That’s in Your Control
Many internal losses result from staff errors, waste, or internal theft. Review your current procedures and look for areas of improvement.
#6 Review Incoming Merchandise
When you receive the product delivery, compare it to what’s arriving and the invoice. When shipping items, make sure to review the outgoing products with the order. This prevents inventory mistakes from going undetected.
#7 Reduce Clutter
Have staff regularly monitor shelves, walkways, and product displays for messes. When products are disorganized, it’s harder to keep track of inventory and makes it an easier target for thieves.
#8 Rate Aisles for Risk of Loss
Some product categories, or aisles, have a higher risk of loss than others (cosmetics vs. canned goods). Taking the time to review each walkway and labeling the loss risk will help you determine which areas need additional protection and how much to invest in those solutions.
#9 Remove Opportunities for Theft
Review the layout of the store and how high-shrink items are displayed. During this review, look for opportunities to make products easier to shoplift.
#10 Monitor Weekly Loss Trends
Stay current on news that informs you of targeted items for your geographical area and high-shrink items for that time of the year. For instance, alcohol theft increases during the holidays, cold medicine theft increases during winter, etc.
Learn How PPS Can Secure Your Bottom Line
Product Protection Solutions (PPS) is a loss prevention company that focuses on helping our customers’ overall profitability while improving the shopping experience. The PPS is your loss prevention team that’s ready to help you achieve your business goals!
Contact our team online or by phone at 866-750-5744 to learn how we can help you prevent loss today!