Are you looking for a way to affect your shrink loss in a positive manner? Retailers who have a smart loss prevention program depend on certain fundamental to reduce their chances of loss and increase their opportunities for higher profit. Below you will find four of the key fundamental which should be included by every retailer in their loss prevention programs as well as some best practice articles.
There are retailers who attempt to implement a loss prevention program while lacking in the proper focus that is needed to impact their shrink. True, store management, operations, field management, everyone is responsible for loss prevention, however having dedicated resources whose focus is on shrink prevention, will bring about much desired results in the long run. Ensuring you have solid strategies to prevent retail loss can make all the difference in your efforts success.
Often, a diminishing return is seen by those who share ample resources across too many responsibilities. Another thing that can result in a fragmented program that does not deliver results is changing initiatives it often or trying too many initiatives. In order to reap the best results with your loss prevention initiatives, place your focus on the proper resources as well as the correct program initiatives.
There is no question that the retailers who have the most success in lowering their levels of inventory shrink and preventing loss are those with a well-structured program, who stick with it. Right alongside of focus is consistency with the elements of the program. Whether it is along the lines of your techniques to investigate loss, conducting associate training, or scoring audits, it is important to be consistent.
There are some key elements that a program should start with in order for it to be consistent; policies and procedures that are documented, and audit that is developed sass well as an audit schedule for every location and a clear knowledge of how theft investigations are handled by the company. If you do not have key elements and a consistent program, your expectations will not be clear to your associates and they will not be able to properly help you prevent loss at their locations.
It was reported by the 2011 Global Retail Theft Barometer in their last survey results that the retailers whose shrink results were better conducted at least two loss prevention audits at each location. At the last Annual Session Loss Prevention Research Council in October, professional shoplifters explained the employee awareness and visibility was the top factor in deterring them from shoplifting.
When it comes to preventing loss, visibility plays a large role. Holding training sessions, conducting audits, unexpectedly dropping by a store are all methods of increasing LP presence. What is it that does not work? Not conducting a loss prevention or shrink audit at a location, or not visiting a location because “the shrink is always good.”
Preventing loss is what loss prevention is all about; this requires a proactive rather than a reactive program. Yes there may be times, maybe even often in which racing to situations will occur; however as The Six Principles of Loss Prevention stats, the way that all reactive situations should end is in consideration of how future prevention will be implemented.
To have a real impact on shrink loss, the focus of a loss prevention program should be on certain fundamentals, being proactive should be the key fundamental. Those who are successful with their shrink reduction do not view certain initiatives as elements, but more as the development of a culture of loss prevention; behavioral changes, the creation of an environment that is trustworthy, look for and reward accomplishments that are positive.