Loss prevention in retail is a major concern. Losing products between the point of manufacturing and the point of sale causes a significant loss of profits for retailers every year. As per a study by Global Retail Theft Barometer, global retail industry lost $128 billion in 2013. However, before we delve into the ways with which retail loss can be curtailed, let’s take a look at its top causes.
Top causes of retail loss
Employee / Internal Theft:
Employees at a retail store have the easiest access to products. Weak monitoring and supervision further adds to the easiness with which they can lift these products. According to National Retail Federation (NRF) Retail Security Survey 2016, employee theft account for 36% (approx.) of total inventory shrink.
Another major factor that contributes to retail loss is shoplifting. Customers steal products by putting them in their pockets, under clothes and leave the store without paying for it.
It refers to employees giving away products at discounted prices or for free to friends / relatives who come in as customers, accounting for a huge loss in retail.
Inefficiency in pricing, record keeping, accounting, etc. by employees cause a great deal of retail loss.
Clearly, retailers need to initiate activities that restrict causes of loss prevention. Enlisted below are 4 simple ideas for loss prevention in retail:
Installing Security Signs:
Putting security signs in a retail store is an inexpensive yet effective way to deter shoplifters. Strategically positioned signs close to entrance, try rooms, etc. impact the visitors’ mind and reminds them that any sort of theft is punishable. This restricts them from taking the illicit action.
Retail surveillance systems:
Installing surveillance cameras and IoT based security sensors is the most effective way to ensure retail security. Having it in place allows 24/7 video monitoring of employee and customer activities. Well-planned positioning of cameras helps keep an eye on the number of store visitors and their movement within the store. Also, monitoring of PoS (Point of Sale) area helps keep a check on transactions carried out by the cashier.
Installing security mirrors is a yet another way to prevent internal theft and shoplifting. It is a low-cost solution to keep a check on the blind spots in a store. Blind spots are those areas that are not visible or are blocked behind fixtures.
RFID (Radio Frequency Identification):
It refers to the chips embedded in product tags that help retailers catch shoplifters. If a customer tries to take a product out of the store without payment, RFID tags attached to the merchandise will trigger security sensors giving an alert to the store staff.
Thus, incorporating these 4 simple ideas into your store security strategy can help bring in effective results. However, use of retail surveillance goes beyond standard security purposes. GizmoSupport’s managed e-surveillance for retail expands security reach across a retail store and ensures protection from all possible causes of retail loss. Get in touch with us to know more.