Retail Expert Training Is Essential To Curb Losses
For any business to prosper there needs to be an increase in sales and decrease in shrinkage. More often than not, a lot of thought is given to improving sales figures and many store owners fail to understand the implications of shrinkage on their profit. It is true that 18% of the total loss arises out of this reason and it is time that this is curbed for better performance and returns. To understand the reason for the same and try to prevent such losses from happening, Retail expert training is the need of the hour.
There are basically two factors of causes for retail shrinkage:
- External – This includes shoplifting, robbery, theft, etc.
- Internal – This comprises employee theft, backroom errors, storage procedures, administrative errors, etc.
Retail Expert Training - some useful information
Let us now look at each one of them separately and what can be done to control these factors:
Shoplifting – Over the years, shoplifting has changed from a petty theft to a serious crime. There are many people of different ages who are prone to pick up goods and walk away without paying. A few years ago, it involved only a single person, however, in the recent times; it is more of a planned crime with an accomplice waiting outside the store in a vehicle.
Many retailers exhibit their most valued goods near the entry point so as to attract the customers. However, it is always advisable to display them at strategic locations so as not to provide an opportunity to thieves.
Robbery and theft – Retail owners need to be careful with their cash drawers. They should be emptied at a time when there is no or minimal traffic in the store. This should be done in the presence of more than two security personnel in order to avoid any mishaps. The cash drawer should always be locked when not in use.
Employee theft – These are the people that are the closest to the products in the store and can easily get away with theft of high value items. Make sure that the candidates’ background is checked in detail before a job is offered. Installation of CCTVs in important locations and checking the belongings of the staff before they leave for the day is a good control procedure.
Backroom errors – Whilst receiving goods from vendors, the receiving staff should always count each box individually and take down the inventory in the presence of the driver. Any discrepancies should be duly noted and informed. Lax policies and procedures can result in vendor fraud and you may be over charged or be supplied with less merchandise than agreed.
Storage procedures – This is very important if your retail store sells perishable goods. These goods have a limited shelf life and rotating and storing should be given significant care. Whilst stacking, the goods that have been supplied first should be sent out for sale first so that they do not reach their expiration date before they are even out of the store.
Administrative error – Administrative staff should have knowledge about all the goods in the store and their approximate prices. Errors usually occur when billing goods which are similar in appearance, but are priced differently. The staff should be trained to check any discount or store coupons so as to avoid giving the wrong info to customer.
Retail Expert Training in Conclusion
With an increase in shrinkage rate in most retail stores, management should take steps to identify the cause which has the most profound effect on losses. This can be done upon careful examination and Retail expert training should be taken up to prevent losses.