Retail loss prevention is an ongoing worry, in large part because it’s key to protecting your bottom line. While losses can come from several sources, employee theft and shoplifting should be your two biggest concerns. There are many ways you can reduce your risk from either of these sources, and while some of them may seem onerous during your busiest sales periods, the alternative is worse.

Shoplifting

Some shoplifters are individual opportunists, but many are members of organized retail theft rings. In 2013, 78% of losses attributable to these organized rings came from fraud based on gift card and store merchandise credit scams.

Patrons who know you’re paying attention are less likely to misbehave. Put up one or more signs that state your intention to prosecute shoplifters. Interestingly, studies show that signs which depict eyes work better than those with words.

Lock dressing room doors, and have employees count items in and out each time they open/close a room. If you can’t avoid “dark spots” within your store layout, install mirrors so sales associates can see into and around these areas. Besides, customers who can see themselves know you can see them, too.

Security experts emphasize that, for your own safety, you should never physically accost or outright accuse shoplifters. You can try to “gently” rectify the situation, or simply call the authorities instead.

Your floor staff are your eyes and ears when it comes to loss prevention. Train them well on “red flags” to look for — around the store and at the cash register. With friendly greetings to each new customer, visually monitoring the store and personally engaging with shoppers, they send a message that you love paying customers but your store is not an easy target for thieves.

Employee Theft

It’s all too easy for employees to steal, both merchandise and money. Set high expectations for their behavior, and pay attention to what’s going on in your store. Don’t hire anyone without conducting a solid background check. Change your computer passwords regularly but randomly. And track your inventory religiously, with periodic unannounced audits of both inventory and sales transactions.

According to the National Retail Federation, about 12% of shrinkage comes from administrative mistakes. That emphasizes the importance of employee training, especially during the holiday rush, when you have temps on-hand to augment your regular sales staff.

Live video surveillance is an effective deterrent to both employee theft and shoplifting, especially when cameras are aimed at your cash register and back room as well as the sales floor. Video is also a valuable asset, should you be hit by thieves. If you can’t afford the highest technology, there are still a number of cost-effective low-tech ways you can protect your store.

Common sense and a level of vigilance that matches your merchandise and budget go a long way toward protecting your store from shrinkage. No matter what your store size or type, the National Retail Federation has vast resources to help you learn and implement retail loss prevention best practices.

Palmer Retail Solutions strives to offer our clients the absolute best combination of innovation, quality, service, and value for our diversified custom store fixtures and merchandising displays. For more information about our designs, retail fixtures, cash wraps, kiosks, or point of purchase displays, visit our website at: http://www.palmerretailsolutions.com.