5 Ways to Reduce Shrink in the Retail Industry
A high shrink can wreck havoc on retail stores and businesses. Shrink is classified as the loss of product between point of manufacture and point of sale. It’s nearly impossible to avoid all forms of shrink in the retail industry, but there are some steps retailers can take to reduce it. Here’s how.
Conduct Loss-Prevention Audits
According to a r report, retailers who conduct a minimum of two loss-prevention audits per month experienced lower shrink rates when compared to retailers who conducted them less frequently or not at all. So if you’re looking to lower your store’s shrink, it’s recommended that you follow a similar approach by conducting loss-prevention audits on a regular basis.
Protect Against Shoplifting
Among the most common causes of retail shrink is shoplifting. Each year, retailers lose billions of dollars worth of product due to shoplifting.
Here are some tips to protect your retail store against shoplifting:
- Install a video surveillance system.
- Place valuable items behind locked cases.
- Install security tags on high-dollar products.
- Set up security mirrors so employees can see around aisles and corners.
- Install an alarm system.
Inventory Control
Inventory control plays a key role in shrink. If you don’t know what types of products are currently housed in your store, or how many of those products your store has, you won’t be able to effectively identify your shrink. So, employers should perform inventory control checks to keep tabs of their products.
Protect Product from Damage
When product becomes damages to the point where it can no longer be sold, it must be counted as shrink. Therefore, it’s a good idea for retailers to take meaningful steps towards protecting their products from damage.
Hire the Right Employees
It’s not just shoppers who steal product from retail stores and businesses; employees do it, too. In fact, the website StatisticsBrain reports that three in four workers have stolen at least once from their employer. To better protect your business from employee theft, you should selectively hire trustworthy, qualified workers for the job. Hiring the first prospective worker who submits an application is just asking for trouble. Instead, conduct a thorough interview and background check to ensure they are the right choice.