#1) Display Products Correctly
Ever notice a product tucked deep behind or underneath a shelving unit in your store? Whether it's a perishable food product or not, allowing it to sit in the dusty, dirty area behind a shelving unit will ruin an otherwise perfect product; thus, contributing to your store's inventory shrinkage. Owners can protect themselves against instances such as this by displaying product on premium gondola shelves, gridwall, slatwall, rolling racks, etc. Taking the time to display your store's products correctly will naturally reduce inventory shrinkage.
It's not something most retail businesses want to think about, but shoplifting is a serious concern that can greatly eat into your profits. And since it technically occurs between the manufacturer/supplier and the point of sale, it's part of shrinkage. Each year, U.S. businesses lose billions of dollars from shoplifting, which is why it's important to take preventive measures in your store. Installing security cameras, dye tags, alarms and security mirrors are just a few measures which are sure to help reduce theft.
#3) Employee Theft
Theft doesn't occur only from customers; unfortunately, employees statistically steal more product that customers. Each time an employee steals an item, it adds to your store's shrinkage. Even small items and products gradually build up to create a financial burden for retail stores.
So, what steps can retail stores take to reduce the chance of employee theft? The first line of defense is to hire trustworthy, reputable, experienced employees to run your store. I'm sure this is common sense to most people, but you shouldn't hire employees whom you don't trust. Owners can also install video monitoring systems in their storage rooms to prevent theft.
#4) Move Perishables Fast
One of the most common contributing factors of retail inventory shrinkage is from spoiled perishables. If your store sells perishable food and/or beverages, make sure your employees are trained to move it as fast as possible. Don't just place it in some obscure part of your store where customers can't easily find it, but instead keep it out in the open with signs, banners or other promotional material drawing attention to it.
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