Retail Loss Control is one of the main determining factors to retail success and profit. Despite huge investments in your store’s fitout, marketing and sales staff, stock theft is ultimately the major interruption to achieving top sales and revenue. Unfortunately there is an increasing trend in shoplifting – both external and internal.
Retail loss prevention tools allow retailers to leverage smart technology to significantly reduce shoplifting and the array of costs associated, such as after-hours stocktakes. Any retailer with a shrinkage total over 1% can implement a basic retail loss control system such as Electronic Article Surveillance (EAS) to add that loss straight back to the bottom line. Depending on your store’s size and turnover, this could mean a figure in the hundreds of thousands.
Retail Loss Control in Australia
The Australian retail arena is also becoming more flexible than ever before, with weekend trading, extended hours and staff turnover causing a growth and minimising control of store security and shrinkage levels. Lifestyle products have also spiked in recent times with the advent of highly sought designer labels, whether it’s clothing, handbags and smaller accessories such as belts and sunglasses. Also, the burst of popular personal electronics products such as iPhones, iPads and laptops - poached mainly by external shoplifters for their resale value – are also a main target for theft.
Retail industries are vitally important to the Australian economy, contributing almost 11% to the nation’s economy when combined with wholesale industries.
With shoplifting costing Australian retailers $2.3 billion annually, it's no wonder shoplifters are not only a problem for the success and survival of small businesses, but also a problem for the economy as a whole.
Reports from the media and Australian Institute of Criminology also found that;
- 2-5% loss of sales to shoplifting can amount to a 25% loss in profits.
- Australia is suffering one of the highest increases of shrinkage and theft levels in the world.
- The collapse of many small businesses in Australia could be contributed to the inability to identify shrinkage and stem it at its tide.
More alarming is the fact that only 2.5% of retail theft is witnessed and the average shoplifter is
- Middle class
- A regular customer
- And more likely to be a retiree or white collar female than a teenager
Considering these facts, it's no surprise even the most vigilant and well trained staff have trouble knowing who and what to look for. It’s for this reason that retail security is so important for your business.
There are many options for the Australian retailer. While some larger retailers employ a specialist Loss Prevention Manager handling the asset protection strategy and efficacy of the security equipment, retail loss for small to medium retailers can practice some simple, low maintenance and effective retail loss prevention techniques.
In addition, security solutions such as EAS has been proven to cut external theft rates by up to 80%, and have become a best friend to retailers wanting to protect their products and maintain profitability.