The breach of Target’s consumer data in December had a significant impact on the retailer’s holiday season. In truth, with industry consumer foot traffic down over 14% sales weren’t going to be exceptional anyway. In addition, although I’m not familiar with the details of Target’s line of responsibility structure, the breach probably had little to do with traditional loss prevention roles.
The consumer market has weathered a very long storm. Since 2008 retailers and restaurants have been on a roller coaster of hope and despair. Although there are some positive outlooks for the year (NRF predicts a 4.1% growth in 2014), it is doubtful anyone will be quick throw off the cautious and conservative decision-making attitudes of the past five years. Companies are faced with a loss prevention paradox. On the one hand, budget and personnel have seen decreases as a part of the cost-saving measures. Conversely the less efforts and resources allocated to this important function, the greater the chance that any savings will be eroded by increased losses. The situation suggests the need for a change in attitude and approach.
Topics: Loss Prevention Support Function