I had the privilege recently to sit in on a webinar discussing the results of the 2014-2015 Global Threat Barometer and the findings from that report. As I listened to the presentation, there were several key facts that stood out to me, especially with the knowledge that soon stores will be preparing for inventories. According to the report, employee theft and shoplifting account for almost 75% of all store shrinkage. It was estimated in the report that the cost of retail crime in the U.S. was approximately 79.32 billion dollars! Even more incredible, for the retailers which participated in the survey, representing 24 countries around the world, total shortage was estimated to be 123.4 BILLION dollars (U.S. dollars). These numbers cannot be ignored. There is theft happening within the walls of your store. You may not be able to stop ALL theft, but by investing in Alpha Security products you can dramatically reduce that theft and improve profitability.
There is a wide array of retail anti-theft devices on the market today that can prevent shoplifting of almost any product on the market. Assuming you don’t have an electronic article surveillance system in place, I would recommend you first invest in one. An EAS system is a strong visual deterrent to anyone entering your store with the intent to steal from you. Once you have determined to purchase a system, selecting the right retail anti-theft devices for the products you carry is the next step. Alpha security carries devices that can protect everything from jewelry to laundry detergent. Do you sell coats? Alpha cable locks can work for you. Are tools your specialty? Alpha VersaLok may be the answer to prevent shoplifting in your store. The point is, if your store is not protected by using retail anti-theft devices, like it or not, you are the target of shoplifters. If you are a large enough business to have any staff working for you, there is a strong possibility you are incurring some losses due to employee theft.
Do you think the investment in retail anti-theft devices to prevent shoplifting is too costly an expense? Do you think you can mark up your products to cover any losses you may experience? Before you reach this conclusion, here is another factoid from the Global Threat Barometer webinar, the cost of retail crime in the U.S. equated to approximately $615.07 per household a year. Households are already stretching budget dollars to make ends meet. Adding to the $615.07 that thieves are already costing the average consumer with price increases is going to drive business away from your stores. Stores that HAVE invested in Alpha security devices and other retail anti-theft devices are driving their shoplifters to your location(s). Put all these factors together and you can see how your profits can plummet.
Inventory control is not out of reach. Investing in the right deterrence systems, such as Alpha security products is a step in the right direction. According to the Global Threat Barometer webinar, additional “Best Practices” that can help you drive down shortage include leveraging internal data more effectively to understand shrinkage results. Invest in employee training. Knowledgeable employees who understand how they can prevent shortage and why it is important can make a significant difference for your operations. Finally, budget effectively. Managing how and where you invest to prevent shoplifting can pay greater dividends than trying to “secure everything”.
Don’t let your inventory results control you, invest time and resources in the right ways and you can control your inventory. Alpha Technology can help you analyze your business to find the right solutions to fit your needs.
For more information on Alpha Security contact us or call 1.770.426.0547