Protect Your Store – Know the Basics of Loss Prevention

Protect Your Store by Knowing the Basics of Loss Prevention

Owning a retail store requires constant thinking about your store, whether it is which products to put on the shelves or where to put the shopping carts and baskets. One issue that keeps many store owners up at night is loss, otherwise known as theft.

Unfortunately, virtually every retail store will experience theft of either inventory or money each year. Luckily, there is a way to help keep the amount of loss a store experiences to a minimum and keep all of your precious items on the shelves until a customer is ready to (legally) but it.

What Is Loss Prevention?

Loss prevention is the idea of setting policies and procedures in place to help prevent theft or loss of any kind in a retail store. From inventory to money, just about anything that is owned by the store is liable to be stolen.

Security systems, inventory audits, store greeters and everything in between play a role in loss prevention. Loss doesn’t always result from unlawful actions, as some administrative mistakes can result in inventory shrinkage as well.

There are a few different types of loss that a store will experience, such as:

Employee Theft

  • This type of loss can take many forms, but is mostly seen when an employee unswervingly takes cash from a register or charges a customer a higher price and stealing the difference. Employee theft is the largest source of loss in retail stores each year.

Customer Theft / Shoplifting

  • The second largest cause of loss in retail stores is shoplifting, or potential customers stealing items without paying for them. This can be done in a variety of ways, with shoplifters getting more creative every year to get around advancing security systems.

Vendor Error

  • In some industries, the vendors are responsible for maintaining inventory levels in retail stores. When this is the case, whether by accident or done purposefully, there is a chance that some inventory will become lost or stolen.

Administrative Error

  • Pricing mistakes during sales, or incorrect markups or markdowns will result in a decent amount of loss in a retail store.

Why Do You Need Loss Prevention?

Simply put: to make your business better.

By preventing theft or administrative mistakes, you are maximizing your profitability. Stolen inventory will not make you any money, so why not try to protect it and keep it on the shelf?

Budgets, sales, pricing decisions and so much more depends on maintaining an accurate inventory level. Aside from saving yourself money and preserving the reputation of your store, a loss prevention function can save you numerous headaches as a store owner.

Does Your Store Have Shopping Carts and Baskets?

Now that know how important it is to make sure your items are accounted for at all times, make sure shoppers have baskets and carts to put them in!

Contact Good L Corporation today to learn how brand new shopping carts and baskets can help take your store to the next level!