Don’t Let Your Store Fall Victim To Shrink

As a manger or owner of a thriving retail, grocery or drug store, it’s always in the back of your mind - that nagging pain of knowing that every day you stand to lose 2% of your sales in what has infamously become known as “shrink.” You do everything you can to hire good employees who you diligently train to be observant for signs of shoplifting, but at the end of the day, you can see the visible discrepancy between your point-of-sale receipts and your inventory. According to Brent Dirks, writing for “Security Products” magazine, the national retail industry saw losses from “shrink” grow from $33.5 billion in 2009 to $37.1 billion last year. It’s frustrating but definitely not hopeless.

You know where “shrink” comes from:

1. Employee Theft - accounted for 43.7% of losses
2. Shoplifting/Organized Retail Crime - came in at 32.6% of total losses
3. Administrative Errors - mistakes in markups or markdowns can equal 15%
4. Vendor Fraud - occurs when outside vendors stock shelves

Supermarkets and Grocery stores saw an even greater percentage of their sales walk out the door hitting 3.1% of sales and Drug stores/Pharmacies saw their “shrink” double in 2010.

So what can be done? As a concerned friend might say, “I think it’s time to seek professional help for your problem.”

There are hundreds of business security companies, some literally operating out of the trunk of their car and finding the right fit for your particular situation requires an understanding not only of some of the technological advances in security but also an understanding of the capabilities of your chosen security integrator.

Business Security Camera Systems

Today’s business security camera systems provide more capabilities and higher pixel resolutions than older systems, however, for proper installation; they now require more technical knowledge than ever before. As camera resolutions have increased, the initial considerations such as lighting, lens and enclosures have been joined with bit rates, frame rates and compression standards. Ensuring your system has the proper network backbone to operate and the proper server and storage requirements are just some of the considerations that go into proper design.

A well designed video surveillance system not only combats illegal or suspicious activity, but can also provide valuable marketing and customer service information, such as:

• The ability to monitor traffic flows around a new display or end-cap to determine consumer interest
• Get a clearer understanding of proper staffing at check-out positions
• Verify item sales against point-of-sale terminal reports
• Know whether parking facilities are adequate
• Be able to monitor store openings and closing times, even from a remote locatio

Key Card Access Systems

Whether your store is small or large, a well-designed key card access system can really simplify your facility management. With a card access system you have more control than simply handing out a key. You can define when cardholders, whether employees or vendors, are allowed to enter doors, track time and attendance as well as location. You can generate real-time notifications or reports to review later for who entered, where and when. You can also remotely lock or unlock doors if someone forgot a card. And don’t worry if someone loses a card - you can easily deactivate it, and get a notification if someone subsequently tries to use the deactivated card, all without the need to re-key locks throughout your building! These systems come in different sizes as well, making it a very affordable solution.

A properly designed and installed business security system can go a long way toward reducing your exposure to “shrink” and can help you sleep better at night, knowing you’ve taken the first step to combat these avoidable business losses.