Loss Prevention in Atlanta…Do You Have a Plan?

Most large retailers in Atlanta and elsewhere suffer “shrinkage” of less than 2% of their revenue, but did you know that small business retailers often suffer “shrinkage” of up to 20% month over month?  If your business does not have a loss prevention plan, get one, NOW.

Loss prevention involves all types of retail item loss.  According to Wikipedia, the following outline losses of inventory percentages and their causes:

  • 46.8% from employee theft
  • 31.6% from shoplifting
  • 14.4% from administrative error
  • 3.75% from vendor error
  • 2.86% from unknown error.

The above listed reasons are not the only culprits for loses.  Credit card fraud, check fraud, and skimming can also be considered causes of “shrinkage”.  So what can a small business do to prevent these types of problems from occurring?

Have procedures in place such as the method a cashier checks out a customer? Have them check the bottom of the basket first.  “Bottom of basket” loss occurs when either a customer does not indicate other items are below where the employee can’t see or they are forgotten.  This can be prevented with proper training of employees.

I’ve noticed many retail outlets have anti-shoplifting alarm systems on articles, such as clothing.  However, when the article passes through the alarm and it goes off, no one responds.  Have a loss prevention employee that is responsible for checking the bags and receipts of existing customers.

By having a plan in place, you can decrease the “mysterious disappearance” of items in your retail outlet. 

Need additional advice on loss prevention?  Contact us at loss prevention   or call 1.866.914.2567.

Posted September 8th, 2010 by Staff Writer and filed in Uncategorized

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