Retail loss prevention is critical not only for retailers, but also for manufacturers. Stolen inventory, both from consumers and retail employees, contributes to lost revenue and brand reputation. If shoppers can’t find your products on the shelf, they are more likely to turn to the competition.
The 2019 National Retail Security Survey from the National Retail Federation revealed that:
- 42.9% of retailers notice the greatest increase in fraud occurring through in-store only sales.
- Larger retailers (those with more than 500 stores) had shrink rates that averaged twice that of those with fewer locations.
- Employee-related shrinkage was down from 2017, but it still had expensive consequences. The average dollar loss per dishonest employee was $1,264.10.
- The overall shoplifting apprehensions and prosecutions dropped by half between 2017 and 2018, but the average loss per shoplifting incident remained the same — $546.67.
Theft can be particularly prominent during the holiday season, which is just wrapping up here in Canada.
The holidays are one of the busiest shopping times of the year. And for retailers, that typically means hiring extra staff. While this is good for customer service, for manufacturers it might mean taking some extra precautions when it comes to retail loss prevention and inventory shrinkage — even after the holidays.
With the new year upon us, this is the perfect time for manufacturers to take control of their product in-store and look at retail loss prevention strategies for 2020.
If you’ve been experiencing retail loss, or are looking to prevent it in the future, consider:
- Talking with your retailers about their security systems. Are there areas where they have experienced issues in the past that could be shored up?
- If you offer a high-end product that is appealing to shoplifters, ask about increased security. For instance, some retailers will place electronic items behind glass cases.
- Asking about seasonal staff hiring practices. For instance, does the retailer require background or credit checks for temporary employees?
- Looking at your packaging. Many consumers are calling for more sustainability from brands, which often leads to less packaging (especially plastic materials). However, the packaging can be a deterrent for thieves. Look at your own practices to see how you can minimize packaging while still securing your products.
- Considering loss prevention technology. Loss Prevention Media shares some great resources and strategies, such as anti-counterfeit thread and tracking codes: https://losspreventionmedia.com/from-manufacturer-to-retailer/
- Monitoring your in-store inventory. Know your numbers are accurate so you can better catch problem areas and products with higher-theft rates.
The only true way to have an accurate picture of your in-store inventory is by having your own people do a physical check. You need to know that the numbers being reported are true so if inventory shrinkage does occur, you will be able to track when and where it happened.
This is where a service like Storesupport Canada can help. We have a national reach and can monitor in-store inventory levels for your brand.
Some inventory loss may be unavoidable, but by taking a proactive approach you can ensure that it is minimized, and your product is represented in-store through the new year and beyond.
Ask us today about retail loss prevention and booking post-holiday inventory checks. Call 1-877-421-5081 or visit www.storesupport.ca.