The Gamut?

An unattended money teaches stealing! 😉 Welcome back friends and readers from the Us, South Africa, India, and Argentina! 😉

What a joke?!

Do you think people are smart? Of course. Then, why do people think that a store would neglect its methods of protection against shrinking?

First, have you heard about this term before: Shrinkage? Precisely, having your business/store losing money due to a number of reasons.

Related image

Shrinkage Types in Retail

It’s a continuous headache to have shrink in your store, but the good news is that you can do a lot to prevent this kind of loss.

Main causes of shrinkage:
. Errors
. Shoplifting
. Return fraud
Employee theft

Many of the errors that happen in your store due to the insufficient training for some of your employees, or negligence, whether by your managers or employees the result will be equal: losses. Mislabeling, incorrect markdowns, accounting errors can lead to merchandise being sold for less than it should be or refunded for more than it should be.

In brief, the simple solution for this is the good training for every person who works with your store, in addition to the continuous audit to everyday transactions. Doing that would save you a big part of your losses.

Image result for causes of shopliftingShoplifting:
Shoplifting represents the largest segment of your shrink. It’s easy for someone to step into your store and hide any piece under the shirt or in the pocket. You’re not going to check on each one of your guests!

Any item can be stolen no matter what price its tag holds. Would that mean that there is no solution? Of course not, there’s plenty you can do to deter these attempts of theft.

Here’s what you can do:

. Cameras and surveillance and clear big signs that your merchandise is intensively monitored.

. Organize your store’s layout in a way that make it difficult for shoplifters to hide or to get their hands on expensive merchandise without being seen. Make it difficult for thieves to steal. After all, the unattended money teaches stealing.

. Greet your customers when entering the store, have your employee offer help for suspicious people. Train your employees to contact security in case they saw any sign of shoplifting.

Return Fraud

One of the hardest shrinkage type to discover since it needs more investigation and a special eye that can figure it out when happening.

. Returning stolen merchandise: Ask for a receipt and insist on that. Otherwise, you only give back a store credit. Have your employees consistently doing this all the time.

. Returning used merchandise: Refuse to return any used merchandise, even if it was withing the grace period your store offers.

. Using counterfeit receipts to return merchandise: Try your best to show examples to your employees since this is hard to identify unless it is seen physically.

. Returning exchanged merchandise: It is hard but doable. Some customers would get an exchange, then they come back for a refund for the new piece that you gave them. Ask for ID to track returns.

Appoint a smart person for this job; a person who would enforce your return policy and handle any of these situations diligently.

Image result for causes of shopliftingEmployee Theft

Unfortunately, employee theft is said to be as high as shoplifting, but it takes a different shape including straightforward merchandise theft, ringing up fake returns, issuing fraudulent gift cards, neglecting to scan all of a friend or family member’s items or improperly using their employee discount, skimming off the cash drawer — usually done in small amounts at a time that can add up to big amounts of money.

Checking on your employees’ bags will only creates a low morale or work environment. But probably if you used ways to curb employee theft and fraud such as:

. Auditing
. Looking for conscientious employees
. Train employees properly
. Consider a culture for your employees similar to being one family
. Create a positive, low-turnover culture

That was the gamut that Bonnie and Amanda reached at, after searching a number of reliable sources. We hope you’d leave comments for them. 🙂

Until we talk more, and always expect more from our topics, with our hugs and kisses

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