If you are a retailer and you tend to think of the function of Loss Prevention as an after-thought, think again! Shrinkage represents a $42 billion opportunity annually for retailers in the United States, and its impact is felt right at the bottom line, taking away nearly 1.5 points of profitability.
While sources of loss vary across external and internal threats, retailers have the tools to fight back effectively and efficiently, and with little incremental investment. That was the message delivered by Ankur Garg during July 28’s webinar, “Loss Prevention: Increasing Retail’s Bottom Line.”
Sources of loss
The primary source of loss is theft, both external from shoplifting and internal from dishonest employees. However, loss prevention opportunities vary greatly by retail segment.
Just as the opportunity varies, so does the cause. Some segments like Discounters are plagued by theft, while others like Home Improvement/Gardening Stores face administrative and operational processes issues and leading causes.
Retailers do have solutions at their disposal, from proven deterrents like security guards and electronic article surveillance (EAS) to high-technology applications like Video Management Systems (VMS) and analytics.
What’s important to consider in available solutions is functionality versus cost. There are a lot of tremendously complex and expensive solutions designed for banks, airports, and the like, but retailers should look at what’s needed for their business.
More importantly, Loss Prevention modules can be integrated into larger, more comprehensive platforms, allowing the sharing of resource budgets – both capital and operational expenditures – and maximizing the overall organization’s return on investment.
Be sure to catch the complete webinar on demand, and for more information on Loss Prevention, download the free eBook, Retail Analytics for Loss Prevention Professionals.
Be sure to catch the next installment in the RetailNext webinar series, “Preparing for Holiday 2015,” to be presented Tuesday, August 4, 11:00 am PDT (2:00 pm EDT) and facilitated by Shelley E. Kohan, vice president of retail consulting at RetailNext and a faculty member at the Fashion Institute of Technology. Register today.