Company losses or shrinkage are due to three primary causes: internal theft, shoplifting or paper errors. Theft can be reduced if temptation and opportunity are reduced.
Internal Theft - Sixty to 70 per cent of business loss is created by employees. To prevent losses in retail businesses:
Do frequent cash audits.
Keep one person to a register.
Break shifts so that one employee doesn't work cash for a whole shift.
Do daily reports, bank deposits, retail inventory, and trend sheets to monitor shortages and overages, and the number of voids, refunds, * readings and "no sales" per employee.
Be suspicious of employees with consistent overages and shortages, and frequent * readings or "no sales."
Twenty-five to 30 per cent of business loss is due to vendors. To prevent losses by vendors, watch for a series of suspicious "mistakes," free samples, swaps, and vendors who want to count product for you, or appear rushed. Also:
Insist on counting product yourself and count all product, not just cases.
Check all invoices with a company wholesale price book.
Shoplifting
Be observant! Watch and tend to customers in a pleasant, courteous and interested manner.
Greet and serve customers promptly. Shoplifters do not want your attention.
If you suspect someone has stolen something, call the manager or security. Watch them, engage them in conversation and offer to assist them.
Shoplifters come in all shapes and sizes. Be aware of people wearing loose, baggy clothing, those carrying shopping bags or large handbags, and customers under the influence of drugs or alcohol.
Do not allow your attention to be diverted by someone who may be a shoplifter's accomplice. Stay alert and avoid unnecessary conversation.
Keep displays neat and tidy. Constant attention to stock allows sales staff to become familiar with merchandise.
Lock small or valuable merchandise in display cabinets.
Sales personnel should have a full view of the entire sales floor area. Rearrange displays, shelving and lighting to eliminate blind spots.
