How Often Do You Measure Your Shrinkage?

In an article from National Association for Shoplifting Prevention (NASP), I recently read that “There are approximately 27 million shoplifters (or 1 in 11 people) in our nation today. More than 10 million people have been caught shoplifting in the last five years.” 

Wow!! Nearly 1 in 10 people in your store are potential shoplifters! … (Not sure if you are, but I was surprised to see this number.)

So, in today’s Marketing Tip of the week, I would like to shift our focus to Loss Prevention in your stores. 

We are proud to serve you and all our clients. A survey of a small group of retailers was conducted regarding loss prevention programs at their stores.  A few companies attempted to manage their stores with no loss prevention program. Most retailers recognize the need to manage merchandise loss and protect the various assets. However, these programs are developed and managed in different ways depending on: 

1. The type of merchandise in your store (apparel, gift items, sporting goods, specialty items etc.)
2. The location and crime level near your store (is the store located in high theft areas, shopping malls or strip malls, etc.)
3. The size of the store (whether it’s a small or large store -  it helps one to decide on the type of loss prevention media.)
4. Knowledge of owner about loss prevention programs (How savvy are they with modern technology programs or have they built creative ways to deter shoplifters? … Believe me!! I have talked with a few of our clients that have used some great innovative techniques!)
5. Training your employees on enforcing the loss prevention techniques at your store. (in my opinion, you must reinforce the value of good customer service skills, while teaching them about loss prevention techniques at your store.)
6. Lastly (in my opinion, the most ignored one is), how often are you measuring your shrinkage, shrinkage issues/trends and sharing it with your team?

One rule of thumb, that I’ve learned over the years
 

“More than 50% process improvement comes from measuring
and communicating the Right Performance Metrics with
your team on regular basis” 

So, if you haven’t measured the shrinkage in your store and shared with your employees recently, carve out some time to do so and refresh your loss prevention techniques and/or your technology media.