Learning that the purpose of loss prevention in retail is to reduce product theft and preserve profits is an essential part of running a successful business. There are many aspects of retail loss prevention that can help you within your company. If you’re new to loss prevention, this article will help to educate you!
Loss Prevention Explained
Loss prevention is the practice of reducing loss while preserving profits within your business. Losses can include:
- External theft (professional and amateur thieves)
- Internal theft (employees)
- Fraud (customer or vendors)
- Administrative errors (human errors)
To combat the above losses, you can implement various loss prevention strategies.
- Implementing loss prevention policies and training
- Utilizing loss prevention devices
- Installing a security system
- Using inventory management or point of sale (POS) systems
Many retail stores will hire a loss prevention professional to handle their loss prevention strategies, but you don’t need a professional. Instead, working with a trusted and reputable loss prevention solutions provider, like Product Protection Solutions (PPS), can help you achieve your loss prevention goals.
What is Shrinkage?
Shrinkage is a familiar loss prevention term. It refers to the loss of inventory within a store for various reasons. A high shrink product is an inventory item that is regularly reported as a loss, whether from theft, fraud, or damage. The higher the shrinkage, the higher your loss of profit.
A Clear Understanding of What is Loss Prevention in Retail
There are many purposes of loss prevention in retail:
- Finding loss prevention solutions to reduce shrinkage
- Identifying high shrink merchandise
- Implementing internal loss prevention strategies for employees
- Lessening operational errors
- Minimizing damaged merchandise within the business
- Reducing theft from amateur and Organized Retail Crime (ORC) thieves
Why Retail Loss Prevention is Important
The primary purpose of retail loss prevention is to increase business profits from the different types of losses. Loss can occur throughout the company, not just from inventory shrinkage (for example, employee injuries or time-wasting tasks). Learning how to cut down on those losses then applying strategies before those losses occur is a game-changer.
Getting Started with Loss Prevention
Learning how to implement a loss prevention plan in your company doesn’t have to require significant time or resources. You can begin with small changes and policies and add on additional strategies when you’re ready. Retail loss prevention is a valuable way of protecting your business and securing your merchandise.
A Free Loss Prevention Resource
One loss prevention tool that you can take advantage of is the PPS TotalLP App, you can:
- Scan a product’s UPC to learn theft solutions
- Learn tips on preventing work injuries
- Read industry news and updates
- Follow current shrink trends
Download Your Own Loss Prevention Checklist!
The PPS team created a Retail Loss Prevention Checklist to help you with:
- Cash Handling
- Loss Prevention Policies
- Loss Prevention Technologies
- Physical Security Measures
- Reduce Return Fraud
- Training Your Staff to Watch for Theft
To learn more about how PPS can help you with your loss prevention goals, contact us online or by phone at 866-750-5744.