Retail loss prevention system pays for itself

Checkpoint systems retail loss prevention technology will pay for itself in a few short months…and then it is a huge money maker. 

Let’s take a look at some actual statistics that point out how the Checkpoint systems technology effects the numbers.  Price Waterhouse Coopers conducted a survey recently where they watched 98 sku’s in a supermarket chain, four locations, for fourteen weeks.  There were four weeks pre Checkpoint Systems install and ten weeks post install.

Working with store management, they identified high shrink items and determined pre install shrink levels.  They then performed weekly inventory counts to determine results.

PWC found that these 98 sku’s went from over $1,000 per week in shrink to $306 per week in shrink.  That is a reduction if inventory shrinkage of 69.79%.  They also found that sales increased by 9.2% because more stock was available for sale to paying customers.

If we simply look at the shrink reduction we can make some calculations.  The average retailer with $1mil in annual revenues and a shrink rate of 3% is losing $30,000.  Reducing the shrink by 69% equals $20,700 less shrink.  This $20,700 goes directly to the bottom line profit margin.  Again the average retailer is seeing a net margin of less than but let’s use 3%.  So the net profit goes from $30k to $50.7k which is also a 69% jump in margin.

The average Checkpoint Systems retail loss prevention install for a one door retailer is less than $5k.  You could buy four of these systems in one year with the reduction in loses.  And consider the improvement on the overall numbers of the business…it’s a no brain-er.

For more info visit: retail loss prevention 

 

Posted December 2nd, 2010 by Staff Writer and filed in Uncategorized

What is Loss Prevention Security?

 

Although I get this question asked of me indirectly, it is an interesting question to me, “what is loss prevention security”?  Many retailers consider their burglar alarm as loss prevention security and it is to an extent, but only when the doors are closed, no one is in and the alarm is set.  That makes it more of a “loss alert” than prevention security.  The reality is most retail loss occurs during business hours.

The next most popular “I have loss prevention security” comment is in regards to their camera system. And again 99% of these systems are not actively in use for prevention.  Retail camera systems – CCTV surveillance for retail, are typically in “set it and forget it” mode.  In fact, most retailers never even check their recording device any more since DVRs will automatically overwrite recorded info firt in first out.  In other words, no one is sitting in front of the monitor watching the cameras during business hours in order to prevent theft.  The shoplifters know this by the way and couldn’t care less when they see cameras in place.

Maybe you think of a uniformed security guard as loss prevention security, which if they are actually trained on loss prevention and understand how to prevent and process theft, they are a good source of loss prevention security.  Trained people always trump installed systems.  However, very few retailers can afford 24 hour security personnel.

The best installed loss prevention security is active in nature like an EAS (electronic article surveillance) system.  Checkpoint Systems is the leading EAS installer and you will see their systems in store like Kohls, Target, Old Navy, Gap, CVS, Walgreens, Rite Aid and so on.  These are active systems because they alert the store employees immediately when theft is attempted.

Even then the systems full benefit will not be realized without good employee interaction.

For more info visit: loss prevention security 

Posted December 2nd, 2010 by Staff Writer and filed in Uncategorized