To reduce errors that lead to retail loss, along with incidents of external and internal theft, a retail company must put together a thorough and detailed loss prevention plan. This can be done by establishing specific policies and procedures, as well as implementing the necessary tools and a staff of trained security personnel. Having provided top security services in Malta for a number of years, Signal 8 Security shares a few tips on how to develop a good loss prevention strategy.
Incidents That Can Lead to Retail Loss
- Errors: Mistakes in money exchange, incorrect paperwork or inaccurate counting of products can add up to approximately 5 – 20% of a company’s annual loss.
- Internal Theft: We never want to assume the worst of our employees; however, research has shown that internal theft is the biggest cause of retail loss in most establishments. Apart from merchandise theft, void, refund and discount theft are also common factors (otherwise known as “conversion” theft).
- External Theft: This is caused by external sources, such as shoplifting and robberies. Despite being less of a threat than internal theft, it should still be taken seriously by the management.
- Vendor Fraud: Overbilling, price rigging, inflating the bill or shorting deliveries all fall under vendor fraud. The culprits are usually the vendors themselves, who sometimes collude with employees receiving kickbacks.
Strategies for Reducing Retail Loss
With the right amount of time and commitment, together with a modest investment, prevention strategies to reduce retail loss ultimately pay off and prevent companies from losing a sizeable amount of profit. These strategies could include:
- Running Pre-Employment Background Checks: In a previous blog, we described how screening potential candidates is a crucial part of any job hiring process. Running background checks will flag any potential criminal convictions in an applicant’s past, and is an effective way to reduce internal theft and fraud.
- Hiring Security Guards: Apart from providing professional protection for your assets, well-trained security officers are a visible deterrent to criminals and other external threats, including shoplifters and thieves.
- Seeking the Advice of a Professional Security Company: If you want to secure thorough protection for your retail company and defend it from both internal and external threats, consider reaching out to professionals who can help you devise a number of strategies to safeguard your business.
Are You Looking for Top Security Services in Malta to Protect Your Company?
Over the years, Signal 8 Security has excelled at protecting assets belonging to various merchants, helping them to implement a loss prevention plan and reduce retail loss for many of our retail clients. We utilise undercover officers to catch would-be criminals in the act, as well as uniformed, highly-visible guards stationed at all entrances and exits. For more information about our security services in Malta, contact Signal 8 today!
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