Retail theft is more than a $35 billion dollar issue. Studies, surveys and interviews with industry experts show that regardless of the size or segment of your business, theft can destroy profitability.
Affecting your profits are losses caused by internal theft (employees), external theft (customers) and financial frauds. Combine those thefts with the losses caused by errors (mainly by employees) and margin erosion (discounts, markdowns) these lost profits can become quite substantial.
How Much Are You Willing To Lose?
Unlike a sale, the loss of merchandise or monies requires no customer interaction. Industry statistics show that employee theft is much greater than shoplifting for the average retailer (don't fool yourself into thinking this not true). A dishonest employee will do more damage to a retailers' profitability than multiple shoplifters.
The Need for Loss Prevention
Larger retail companies have the resources, both in budget and human capital to develop and maintain a loss prevention program and presence. Smaller retailers and independent owners may not have the luxury of human resources or funds.
Loss Prevention begins with an understanding that losses can, will, and do occur. Taking this understanding and bringing it to your employees through education, training and awareness is the key to protecting your business. You rely on your employees to be that presence within your location to sell your merchandise and bring profitability to your business. To protect your profitability, they need to understand their role with regards to loss prevention and how to prevent loss.
All they need to start is the knowledge. All you need is a team effort!
SPECIAL VIDEO PRESENTATION: Key Steps to Effective Employee Awareness
Developing an initial understanding of loss prevention concepts takes time, but is time well spent. Training your employees on protecting your profitability should be just like training them on product knowledge, handling register transactions or maintaining store operations.