Retail loss prevention is an essential aspect of running a successful store. Unfortunately, there are many misconceptions around loss prevention strategies that can hinder retailers from implementing effective measures. Here, we’ll dive into seven common myths about retail loss prevention and reveal the truths behind them, empowering you to make smarter decisions in securing your store and reducing loss.
Myth 1: Loss Prevention is Only About Stopping Shoplifting
Many believe that retail loss prevention only revolves around catching shoplifters, but this is far from the truth. Shrinkage (the reduction in inventory that is not caused by legitimate sales) has multiple sources, including employee theft, vendor fraud, administrative errors, and even return fraud. According to recent industry reports, internal theft accounts for nearly 30% of retail loss, while administrative errors and vendor fraud add another significant portion to shrinkage figures.
Reality: A comprehensive loss prevention program should address all potential sources of loss, not just shoplifting. This includes employee training on correct procedures, ensuring accountability in the supply chain, and implementing inventory management system to catch errors early on.
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https://www.unattendedsalesaustralia.com.au/post/7-retail-loss-prevention-myths-busted
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