Shoplifting is on the rise around the world, and inventory loss is a common problem among many proprietors. Certain types of merchandise attract theft more than others, but underlying issues of retail shrinkage are often linked to the following common denominators:
Poor Employee Morale and Subpar Training
Although this aspect is sometimes overlooked, retail shrinkage is frequently seen in stores where inadequate training and low employee morale exist. Employees who don’t understand the brand they represent, or who feel mistreated by the establishments they work for are more likely to steal. And perhaps more commonly, they may be apathetic regarding the store’s inventory loss prevention goals. For this reason, anyone wondering how to control shrinkage in retail store environments should consider better screening processes, as well as make every effort to create a positive work environment.
Causes of shrinkage also include poorly organized stock rooms. This means that even if customer service and merchandising are top-notch, the potential for shrink can still abound. Poorly organized stock rooms create opportunities for employee theft, as well as miscellaneous loss stemming from sloppy mistakes. Steps should be taken to ensure adequate storage is available, and that receiving and storing inventory are tasks for which specific guidelines have been made. Keeping the storeroom organized and clean will also go a long way toward preventing shrinkage.
Substandard Operational Controls
Closely following operational guidelines is the best way to keep any retail establishment running efficiently and profitably. When those controls are allowed to slide into a disorganized state, costly mistakes and retail loss occur. It’s always wise to create a system that clearly shows which employees are to oversee which tasks. Additionally, setting up specific checks and balances can help to eliminate retail shrinkage, whether from theft or genuine mistakes. Such systems may also motivate employees to refrain from engaging in dishonest activity.
Inferior Merchandising Practices
Perhaps the most important way to lower retail shrink is to use a strategic approach to the arrangement of merchandise. The use of tables, cabinets, and fixtures is often the difference between an appealing and uninspiring product display. When merchandise is arranged and displayed properly, it can increase sales by drawing customers to the items being showcased.
When items are merchandised properly, it makes them easier to locate for staff members, which ultimately acts as a deterrent to theft. Using RTF Global’s retail security devices is the best way to keep valuable merchandise safe and secure, while ensuring the areas in which the products are showcased remain appealing and attractive. These security devices can be customized for any retail display, which makes them beneficial in a comprehensive way.
Get Customized Retail Security Devices from RTF
Investing in customizable security devices for retail stores is the single most effective measure any store owner can take regarding inventory loss prevention. Reach out today to discover more about the benefits of RTF Global’s anti-theft retail security devices and how they can help to reduce retail shrinkage, prevent shoplifting, and increase profits.