Shrinkage is a huge problem for retail businesses. It results in billions in losses for retailers nationwide, leading to a sizable loss of profits each year. But retailers don’t need to accept shrinkage as an inevitable part of doing business.
Make 2016 the year that you prevent retail shrinkage from affecting your bottom line. Use the remedies described below to counter retail shrinkage at your business.
Use an Automated POS System
Small retailers in particular might still manually process transactions. Though commercial equipment might be expensive, it’s an investment. You need an automated POS system that is specifically designed to house on-site money in a way that is secure and protected. This will increase accountability and reduce opportunities for easy internal theft and human error.
Automate Your Inventory Management
Small retailers in particular might manage their inventory by hand, but this can lead to huge losses. It simply isn’t effective enough. If you want to stop your merchandise from disappearing unexpectedly, automate your inventory management. Good software that is linked to your POS system can track your products reliably so that you’ll know what’s being lost, when, and how often. With an automated system, you’ll be able to see discrepancies clearly, which might reveal which employee is usually on the floor at the time or which administrative errors are constantly being made.
Even seemingly honest employees will steal from you if they get the chance to. If they feel like they can get away with it, they’ll slip some bills in their pockets or steal merchandise when no one is looking. But training your employees on loss prevention lets you take a strong stand against retail shrinkage and lets your workers know that you’re paying attention. Make it clear what security measures are in place and what repercussions will occur if theft is identified. In addition, training your employees to recognize shoplifters can also help you prevent customer theft.
Take a proactive approach to retail shrinkage by regularly and randomly performing audits. Go through your company’s financials to spot suspicious behaviour and discrepancies. This will discourage thieves from attempting to steal from you and will help you spot any administrative errors early so they can be corrected.
Invest in Counterfeit Detectors
Counterfeit fraud is a serious issue in retail, and by not investing in counterfeit detection, you’re making yourself vulnerable to it. Once you accept a counterfeit bill, it becomes your loss, and you won’t be able to get your money back. Purchasing a counterfeit detector for every point of sale is a wise business decision that will help you reduce retail shrinkage caused by counterfeiters.
Use Cash Counters and Sorters
When your employees are counting and sorting your money at the end of their shifts, a lot can happen. Not only does being alone with your money give them an opportunity to steal from you, but it also can increase your risk of human error considerably. There’s no reason to have employees handling your cash at the end of the night. It’s 2016, and there’s adequate technology on the market that can streamline this process. Using cash counters and sorters can not only keep your employees’ hands off your cash but it can also drastically improve your accuracy, leading to fewer losses.
Use a Cash Recycler
Errors can occur during the preparation of floats. Employees can give out the wrong change to customers. Cashiers could defraud you at the register, through returns, refunds, discount abuse or other means. Managers can write down the wrong total at the end of the night. But you can avoid all of these causes of retail shrinkage by using a cash recycler. This machine can accept cash, dispense it, count it, sort it, authenticate it, and more. It will prepare and count floats. It will reconcile your totals. It will nip retail shrinkage in the bud.