describe the image

Criminal versus Control

Posted on 4/8/15 1:37 PM

In a market where brand recognition, market share and high competition have most businesses working overtime to reduce cost, there is little room for the losses caused by internal theft. Industry reports suggest that as much as 43% of all losses are caused by dishonest employees, totaling $16 billion annually in revenue loss.

Obviously with so much at stake, an honest employee is a key element to business health - but is there a magic bullet? How can we tell if an employee is likely to engage in dishonest behavior?

Read More

Topics: loss prevention, Audits and Investigations, Calculating Shrink

Shrink Results – Good Program Or Good Luck?

Posted on 3/17/15 9:00 AM

Everyone in the organization is satisfied, if not ecstatic, when final shrink results reveal that we have achieved the company goal. The shrink result, alone, seems reason for celebration and these good results would intuitively indicate the existence of an effective loss prevention program.

An unfortunate number of times, however, companies are frustrated when the next inventory cycle misses the goal or when shrink slips back to a higher percentage.  In a search for answers, the most common responses to increased shrink are:

Even a highly focused and effective program will not prevent every store from having a shrink meltdown. A focused program, however, that maintains a clear connection between its components, execution, and results can accomplish three important objectives:

  1. Confirm that the program components provide desired results
  2. Establish and monitor the behaviors that create a rise or fall in shrink
  3. Determine when the issue is one of effectiveness versus resources
Read More

Topics: loss prevention program, Calculating Shrink

How Are You Calculating Your Stores Shrink?

Posted on 3/10/15 9:45 AM

“Shrink” is a common term in the retail world. It is a term for the calculations that demonstrate the loss of merchandise in relation to our total inventory sales. We say “calculations,” plural, because there is some flexibility in how it is calculated and the exact nature of the relationship between those items lost and those items sold. Most loss prevention professionals prefer to discuss shrink in terms of loss as a percentage of retail sales, while many finance professionals like speaking in terms of true “cost.” In truth, as long as the reporting method remains consistent from year to year, the three accepted methods of Shrink calculations are all created equal. 

Read More

Topics: loss prevention, Calculating Shrink, LP 101, Shrink

Join our email list!

Most Popular Posts