By Ken Murphy, COO, Impact Power Technologies
In the fight against shrinkage, retailers need to analyze all areas of their business, especially the tools used to power up their communications and inventory management equipment.
Shrinkage continues to be one of the biggest issues retailers face. According to the 2015 Retail Fraud Survey, retailers lost an estimated $60.1 billion as a result of shrinkage ranging from employee theft to return fraud. Loss prevention is key to mitigating this, as is a well-maintained inventory control system. Combined, these two components can help retailers save money and reduce losses.
Today’s economy is forcing retailers to watch every penny and financial discrepancies or mistakes are simply unaffordable and unacceptable. Brick-and-mortar stores are especially feeling the pain due to the rising trend of ecommerce and the convenience of online shopping. However, most managers overlook two very essential pieces of their stores’ operations that would help prevent losses: unhindered communications and more effective tools for behind-the-scenes control.
Let’s first look at the loss prevention side. There is no question that prioritizing shrinkage prevention is a major step in combatting the problem. Empowering store employees and the LP/asset protection team with the responsibility to speak up if they see something suspicious is vital in creating a strong front. However, certain situations require an instant response that can be delayed by inhibited communications.