Retail risk management is identifying areas of risk in your grocery operations, then mitigating or eliminating those risks to protect your customers, business, and bottom line. The risks that face grocers run the gamut from data security, to the health and safety of customers and employees, to inventory loss prevention.
A National Retail Federation study shows retailers lose about $50 billion in inventory theft every year. And while you might assume the bulk of this is from external customer shoplifting, at least 30 percent—roughly $15 billion—is actually from employee theft. And that doesn’t even include outright cash theft.
We’ve focused our recent posts on the topic of margin management — ways to help you minimize costs and maximize profits. We’ve provided tips, tricks and technologies retail grocers can use to insulate profit margins in the age of the dollar store and protect against the damage of product recalls, and even delved into the benefits of moving into the digital future with electronic shelf labels.
According to the National Association for Shoplifting Prevention, more than 10 million people have been caught shoplifting over the last five years. And with the holiday season in full swing, increased store traffic means a greater risk of retail theft than at other times of year.
Many things affect the bottom line of grocery and retail stores, not the least of which is inadequate loss prevention systems. According to a National Retail Federation study, American retailers lose billions of dollars in potential sales each year due to “shrinkage” – which is the loss of inventory because of actions such as shoplifting, employee theft, administrative error, and cashier error.
Video surveillance is a key part of a loss prevention strategy for your supermarket, convenience store, or any other type of small retail business. Closed-circuit television (CCTV) has long been the foundation of store security efforts in preventing internal or external (shoplifter) theft.
But there’s more to it than just retail monitoring, as you can also gather information that helps optimize your store’s performance, improve customer service, marketing, and promotions. Here’s how you can leverage your investment in CCTV systems to get the highest – and best – returns possible.