Retail Loss Prevention Techniques: A Guide
As the business owner or manager of a retail store, you need to be aware of the potential for loss and shrinkage. In some respects, inventory loss has always been part of doing business. We don’t blame you if shrinkage is part of your yearly budget.
That said, you can be proactive in reducing shrinkage by implementing a loss prevention plan. You can limit the situations in which loss occurs with a focused strategy and buy-in from employees at every level.
Preventing theft, damage, and other errors that lead to loss has always been an area of importance for retailers.
Inventory loss in the United States has remained high over the years. In 2019, retail losses topped $60 billion. Retailers face greater challenges today than ever before. Traditional crime like shoplifting has long been difficult to stop. Organized retail crime and “smash-and-grab” robberies are on the rise.
Retail loss is a complex, multifaceted problem. The bottom line is that inventory lost robs your business of profits. Preventing loss can save you money and allow your business to grow—but the benefits don’t stop there. By implementing a plan to help you prevent losses, you can save money, improve employee performance through training, and better serve your customers.
Implement a loss prevention plan step 1: make loss prevention a core focus.
Loss prevention should become part of the culture at your business. From their first day on the job, employees must know that preventing loss is critical to your businesses’ success.
But how do you get to that point?
- Get management buy-in. Make it known that managers at all levels should see preventing loss as a priority. To set this in stone, give your staff access to training resources to increase knowledge and awareness.
- Make loss prevention just as important as sales. Sales keep your company in business, but losses cut away at the bottom line. Make it known that preventing loss is just as important as making a sale. Remember,if you have product to sell, it’s likely to sell eventually. If you lose product, you have nothing to sell and no way to recoup what is lost.
- Set loss prevention goals. By setting goals, you can monitor results and measure success. If issues persist, use them as teachable moments. Reward staff when goals are met and make your team feel like they are the solution not the problem.
- Consider hiring a loss prevention manager. A loss prevention manager can oversee strategy and work with your team execute a plan. Taking this step also shows your employees that loss prevention is serious.
Implement a loss prevention plan step 2: use technology built to prevent crime.
Retail security technology exists to address crime and prevent loss. But security technology comes in many different forms, and you may not know where to start. Let’s break it down.
Security systems
Retailers everywhere have invested in burglar alarms, security cameras, and access control systems to fortify their business. These systems do a great job at protecting property, products, and people—and with live alarm monitoring, you can take security to the next level. Live alarm monitoring is a service in which you get immediate help when an alarm goes off at your business. Trained monitoring agents work 24/7 to ensure your security. Fire or break-in? Alarm monitoring agents know right away and can dispatch local authorities when they are needed most. Monitored alarm systems make a big difference in terms of emergency response—it’s why you should avoid DIY security and go with a pro.
Electronic article surveillance
You can also use an electronic article surveillance (EAS) system to prevent theft. With an EAS system, you apply RFID tags to merchandise and put a detection system near store exits. When a customer purchases a product, the cashier removes the tag. However, if someone leaves the store with a product that still has a tag, the detectors at the exit will sound an alarm.
If nothing else, an EAS system can serve as a visual deterrent to theft because customers will know that they cannot remove items from the store without an alarm sounding. That alone can make the investment worth it.
Point-of-sale systems
Point-of-sale (POS) systems can help with accounting and inventory tracking. Most POS systems allow you to import your entire inventory so you can track inventory from the time you receive an order to when you sell the item. This means that all inventory data is right at your fingertips.
A POS system also gives you the ability to manage employees who work the register. You can give employees their own accounts to track of who is logged in and when. So, if inventory is missing from the store or cash from an employee’s drawer, you have a record of their work and can backtrack to find out what happened.
Implement a loss prevention plan step 3: organize the layout of your store.
Organizing the layout of your store might sound simple, but it’s something many business owners overlook. Think about large retailers like Target or Best Buy—what do they have in common? Products are toward the middle and back of the store. Registers at the front. Exits, protected by EAS detectors, beyond the registers. From a product security perspective, this type of layout makes a lot of sense.
You can better deter theft by organizing your store and properly positioning products. If you can, put the registers toward the front entrance or exit. This puts employees in a highly visible position to deter would-be thieves. It also means employees can see the exit and call the police if a theft occurs. Here are additional quick tips:
- Put high-value items in visible locations and behind secure containers.
- Place displays that encourage customers to move through your store in a predictable way.
- Where possible, station employees in specific areas of your store so they remain visible to customers.
Preventing loss is a big challenge for retailers of all sizes. The concern has only grown in recent years. A loss prevention strategy is one of the best ways to curtail shrinkage. Take the time to set clear goals and expectations, and get management buy in. Explain the issues to your staff and make them part of the solution. Use security technology to keep an eye on your business and monitor inventory. And examine your store’s layout to increase security.
Taking these steps can go a long way in preventing loss. If you want to learn more about how a monitored security system can help, get in touch with Bay Alarm today!
Start a conversation with a Bay Alarm security expert.
Related Articles
Customer: Essex Realty Essex Realty is a property management company in Southern California with over 17... Read More >
Protecting educational campuses and facilities is an increasingly urgent and complicated problem. Campus buildings can be... Read More >
Time to update your burglar alarm system, but you’re unsure where to start? We don’t blame... Read More >
Managing properties, whether one or multiple, means constantly juggling challenges. Dealing with buildings in different cities... Read More >
As security technology becomes more advanced, so do the options for customizing your security protocols. A... Read More >
What it is: Monitored video security powered by artificial intelligence Live video monitoring is a next-generation... Read More >
Businesses and people are now using facial recognition technology to make payments, bank online, and as... Read More >
In their research report on “The Future of Physical Security,” execs from Microsoft and Accenture interviewed... Read More >
Customer: Laborers Training School Laborers Training School provides construction-based labor training to union workers in multiple locations... Read More >
As we mentioned in a previous article, several trends in the security market have made live... Read More >
News about artificial intelligence is everywhere these days. So it’s no surprise that business owners are... Read More >
The best runners in the world aren’t simply fast; they’re efficient. The most popular cars don’t... Read More >
What are security agent services? Security agent services (SAS) are live security agents who work on... Read More >
A typical customer in 2023 wants—and expects—a shopping experience that works for them. A challenge for... Read More >
There’s no denying that AI-powered technology offers you a chance to step up your business’s security... Read More >
You’ve probably heard of behavioral analytics. It’s everywhere these days, shaping our world and dramatically influencing... Read More >
Understanding who is at your business—and when—is a key priority for most business owners. Another obvious,... Read More >
Video security has come a long way, so much so that the full capabilities of a... Read More >
What is live video monitoring? Live video monitoring is a commercial security service that deters crime... Read More >
According to Security Magazine, more than 2,000 first-responder agencies across the US currently use drones and... Read More >
Scaling a business is an exciting time filled with new possibilities. But it can also bring... Read More >
If you’re relatively handy and feel like you have a solid understanding of technology, you might... Read More >
A video security system is only effective if it’s installed properly. The most advanced, AI-based camera... Read More >
Preserving employee safety can be a big challenge if you’re looking to expand your business to... Read More >
According to the National Insurance Crime Bureau, more than one million cars were stolen across the... Read More >
Has a speeding car in the next lane ever distracted you from seeing a pothole until... Read More >
Every business owner deals with risk: it’s part of doing business. Some risks are worth taking,... Read More >
An unsafe work environment poses hazards for businesses beyond the physical risks to employees. It can... Read More >
The best modern business security systems feature some of the most advanced technology on the planet.... Read More >
Build a culture of safety the right way Protecting employees and the office work space takes... Read More >
Warehouses are complex environments that present many potential hazards to employees. According to the Occupational Safety... Read More >
Protect your business without breaking the bank Protecting staff, inventory, and physical property is a priority... Read More >
Security tools work best when they fit the exact needs―and capacity―of your business and staff. The... Read More >
Implementing an effective security system for your business isn’t as simple as installing a camera, setting... Read More >
Following business safety regulations isn’t a choice but an obligation. Ignoring compliance standards not only puts... Read More >
Business leaders know how difficult choosing a security system can be. Every organization has specific needs... Read More >
One of the most frequent reasons business owners approach security companies is, unfortunately, one of the... Read More >
Keeping up with trends and technological innovations in the security industry can be a full-time job.... Read More >
Robbery, theft, and arson cost US businesses over $17.2 billion in losses in 2021. As a... Read More >
Searching for a smoke alarm system for your business? You’re probably going to need a smoke... Read More >
Do you know what it takes to stay compliant with building fire codes? Not every business... Read More >
Picture walking from your office building to your car at the end of the day. Others... Read More >
How do you keep up with evolving fire codes for your property? Amid everyday business concerns,... Read More >
Several high-profile fires have raised the urgency of fire protection for cannabis facilities. So, what is... Read More >
If you’re searching for the right video surveillance system, you have likely run across the network... Read More >
Waste is kindling for fires. If you work in the waste industry, you are likely aware... Read More >
The numbers don’t lie. Despite all the focus on cybersecurity, cybercriminals remain a costly threat to... Read More >
School security is important from kindergarten through college. Prioritizing safety can put students and staff at... Read More >
Companies of all industries depend on warehouses to store and ship valuable goods. And storing large... Read More >
As a business leader, you might wonder how to implement or improve the safety program at... Read More >
Video content analysis (VCA), also known as video analytics, is a video surveillance technology used to improve the response to crime and other emergen Read More >
Protecting your business and staff during the holidays can be challenging, especially with all the surrounding... Read More >
Access control systems give business owners and managers the power to control what areas employees and... Read More >
One big reason Bay Alarm is different from other security system companies: it’s locally operated and... Read More >
California voters made recreational cannabis legal in 2016. Since then, thousands of cannabis dispensaries and other... Read More >
The answer is yes, 3G is going away. The network will no longer exist at the end... Read More >
Habitat for Humanity is building a first-of-its-kind 3D-printed home in Tempe, Arizona, as part of their... Read More >
In 2020, owners of some multifamily residences in San Diego began receiving notices titled “Retroactive Residential... Read More >
Here’s some reality TV you probably haven’t seen: actual property crimes in progress, captured by Bay... Read More >
An important part of managing your business is ensuring the safety and security of your employees,... Read More >
Open Supervised Device Protocol (OSDP) is an access control systems standard developed by the Security Industry... Read More >
Contact sensors are security devices typically installed on doors and windows. They can notify you and... Read More >
Selecting the right type of security camera for your home or business is critical, as security... Read More >
Standard commercial security guard services include agent response, guard patrol, and standing guard, all of which... Read More >
Biometric security systems digitally identify people through biological signatures, like fingerprints, facial recognition, and eye scans.... Read More >
Ever try scheduling service appointments for multiple locations with a big security company? Chances are, you... Read More >
Having a basic knowledge of burglar alarm systems will help you decide what kind of system... Read More >
Like all security technology, security cameras have come a long way in recent years. As people... Read More >
Your fire alarm and sprinkler systems must satisfy all federal, state, and local regulations. If it... Read More >
Believe it or not, commercial security cameras used to give us blurry images. Luckily, those days... Read More >
Are you hesitant to get a security and fire alarm system for your business due to... Read More >
Fire alarm systems keep buildings and building occupants safe from fires. While it is easy to... Read More >
Catalytic converter theft has become a big issue for car lots as the price of materials... Read More >
An IP camera, or internet protocol camera, is a type of digital security camera that receives... Read More >
When shopping for a business security camera system, you might have the option to choose a... Read More >
Despite advanced security technology, false alarms do happen. Non-emergency events are major strains on local emergency... Read More >
Video alarm verification pairs your security system with an alarm monitoring center. In the event an... Read More >
A motion sensor, or motion detector, is an electronic device that uses a sensor to detect... Read More >
A fire alarm system is one of the most important security features of any building—they are... Read More >
Traditional metal keys can be easily lost, locks must be professionally re-keyed if an ex-employee fails... Read More >
How do you change an employee’s code on your business DMP system? It’s easy! You... Read More >
The ‘Users’ page allows you to manage all of the users on your system. Connect to... Read More >
Schedules and profiles work together to let you customize how and when you give an individual... Read More >
Modern security camera systems are great for monitoring your home or business, as many systems offer... Read More >
The ‘System Overview’ page gives you quick access to the parts of your system you interact... Read More >
For those looking to increase the safety of their home or business, it can be tempting... Read More >
The history page on VirtualKeypad.com allows you to view the most recent events on your system.... Read More >
As a small business owner, you need more than just a security camera or burglar alarm.... Read More >
The reports page allows you to generate reports about what’s been happening on your system. You... Read More >
Holiday dates allow you to adjust your system schedules on special occasions throughout the year. Once... Read More >
The Virtual Keypad website allows you to conveniently manage your access control system using your computer... Read More >
The Bay Alarm Link mobile app makes arming and disarming your business security system easy. Take... Read More >
Adding users to your Business DMP system is easy, and only takes a few steps. To... Read More >
Constructing a new commercial building—be it a retail space, apartment complex, skyscraper, or sporting arena—is a... Read More >
Bay Alarm’s BayGuard+ live video monitoring puts you in complete control of your business’s security system.... Read More >
There are a wide variety of home and business security devices and systems. You can opt... Read More >
Your home or business burglar alarm system increases the safety of everyone and everything within. It’s... Read More >
In 2016, there were over 11,000 reported construction-site equipment thefts in the United States, which accounted... Read More >
A cyber security breach, or data breach, is an intentional or unintentional release of private information... Read More >
The coronavirus pandemic (COVID-19) is shifting most day-to-day work operations from the office to the home.... Read More >
The California State Fire Marshal recently announced that it is still essential for contractors to ensure... Read More >
Fire is one of the top risks to any small business. According to the National Fire Prevention... Read More >
While you can’t always predict supply and demand, ensuring the protection of your business is one... Read More >
