There are many factors that lead to retail shrinkage. Poor inventory management, employee theft, and, of course, shoplifting. And while shoplifting rates have lessened in recent years, it still results in tens of billions of dollars lost each year. Many big-box retailers can afford to take the losses, but for small businesses, a hike in shoplifting can be crippling. And if you have thin profit margins recouping losses from shoplifting is even more difficult. Luckily, there are some ways to lower your risk and minimize your inventory shrinkage from shoplifting. Check out a few easy ways below on how to stop retail shoplifting.
- Determine Items That Are at a High Risk for Shoplifting
- Train Your Employees to Identify Suspicious Behavior
- Engage Each Customer
- Label Warning for Shoplifting
- Make Sure You Have Enough Staff
- Use Cameras and Mirrors Strategically
- Place Your Checkout Near the Door
- Keep Your Store Clean and Organized
- Use Short Aisles and Low Displays
- Rely on Your Inventory Management System
- Institute a Consistent Return Policy
Retailers know that certain products are higher risk items for theft. Make sure you identify which high-risk items your business carries and take extra precautions. Keep these items in cases, near the POS system and checkout, or behind the counter. You can also attach warning labels or sensors to these items.
Having a great staff makes a big difference in many areas of your business. One important role is to serve as extra ears and eyes around your store and near the doors. If you have the budget, consider staffing extra team members on your retail floor. For bigger retailers, secret shoppers and door security are valuable additions.
Speaking of staff, make sure that at least one associate greets or engages in some other way with every single customer that comes through your doors. Not only does this show potential thieves that there are plenty of employees around, but it also is a great start to the customer experience.
Post large and bold signage around the retail space and near the entrance/exit. A simple sign that lays out the consequences for shoplifting or notifies shoppers that they’re on camera actually makes a lot of shoplifters think twice. You can make it funny, too.
Hire enough people to keep the floor fully staffed. It’s not enough to have the bare minimum of cashiers. The extra labor costs for keeping a diligent team throughout the space will save you money down the road by preventing more shoplifting.
Position plenty of security cameras or large mirrors throughout your store. Be careful not to leave any dead spots. Corners and end of aisles are common areas for thieves to pocket something. Keep these especially visible on camera.
Unless you have advanced RFID security technology, keep your POS area and cashwrap near the exit. You want shoplifters to have to walk right past the point of sale terminal before leaving. This just adds one more hurdle to clear.
A clean and organized store is great no matter what, but it also serves as a deterrent to shoplifting. Faced products, stocked shelves, and clean equipment show shoppers that your store is well-staffed and on top of each level of running a business. It will add yet another layer to your security.
Long aisles or high barriers make shoplifters feel more hidden and thus more apt to try to swipe something. If possible, keep any aisles or tight spaces minimal. An open floor plan is much more difficult to steal from.
Keep a close eye on inventory at all times so that you can identify any trends. This includes watching out for retail shrinkage. The shrinkage might be due to a number of factors, so it’s important to identify which your store is at risk against, including shoplifting. A great inventory management system should be included in your retail point of sale system.
Return/refund fraud is one of the most common types of theft in retail. But one that many businesses don’t pay much mind to. Come up with a simple, consistent return policy and know which red flags to look for. Require receipts or check for electronic tags through your point of sale.
How to Stop Retail Shoplifting with KORONA POS
Get the assistance you need with all of this in your POS system. KORONA’s inventory management software is powerful and easy to interpret. Have the peace of mind knowing that any shoplifted items will be quickly identified by your point of sale so that you can take necessary action and make changes right away. Check out the link below to find out more and start a free trial.