July 23rd, 2015, by Sarita Gandhi
With each passing year, Retailers are seeing shrinkage rates increase at an alarming rate, causing bottom-line profits to significantly decrease.
According to the National Retail Federation/University of Florida National Retail Security Survey, inventory shrink (which includes shoplifting, employee and vendor theft, and administrative error) averaged 1.38% of retail sales in 2014, costing Retailers close to $44 billion.
While lost Cash cannot be replaced, Retailers are required to replenish lost inventory at their own cost. Therefore, retail stores institute Loss Prevention guidelines and measures (such as cameras, RFID monitors and tamper-evident security packaging) to protect their Cash and inventory from theft or shrinkage.
Although Loss Prevention issues cannot be prevented entirely, it is imperative to employ policies and precautions to reduce shrinkage rates, increase security in retail environments, and safeguard Company assets in any industry.