There are almost 300,000 retail outlets in the UK and 3 million people work in retail. Retailers understand that shrinkage which is when items are lost between being manufactured and being sold is a very real problem and cutting into their profits. The most common causes of shrinkage are:
When someone steals or shoplifts from a store – taking the item without paying.
When someone obtains an item by deception – using a false delivery address or stolen credit card.
When an employee steals items or money from the store or warehouse that they work in.
Inadvertent human errors when processes are not followed and items are over counted or under counted and recorded incorrectly.
There are a number of ways that retail shrinkage can be reduced.
Shrinkage will always remain a problem for retailers but it can be reduced if the stores own their shrinkage numbers and always implement the points above.
Loss Prevention Audits