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

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