As a small business owner, you’re doing everything you can to survive.
But as retail businesses do everything to possible to increase traffic, there are many challenges.
Your once bustling neighbourhood may be changing.
If it’s starting to feel like a ghost town, you might feel more pressure than ever to seek out retail relocation services to help you move your store.
The bottom line has never mattered more, especially when you may be struggling to pay all the bills, and still take something home for yourself.
But are you doing everything you can to maximize your bottom line?
Shrinkage is the inventory you lose due to theft or damage, which has a negative impact on your bottom line.
Shrinkage can also be a valuable metric in fighting loss prevention.
Stopping theft is sometimes as easy as good customer service.
Left unchecked, shoplifting can be so damaging that you may need to seek the services of a store going out of business sale planning consultant.
But before it gets to that point, there are many strategies you can use to deter a shoplifter and minimize the damage caused by shrinkage.
After all, when you think about liquidating your aged inventory, surrendering it to shoplifters is probably not what you had in mind.
Let’s look at some of them.
Understand The Tactics Of The Shoplifter
Most thefts are a crime of opportunity.
Most who would steal would measure the risk before trying to shoplift.
If there is no one around and the store is messy they may think no one will notice.
Professional thieves will often employ distraction to bring your focus to one area of the store while they steal from another part of the store.
A good start is to be aware of every person in your store, customers and staff.
Understand the mind of someone who wants to steal from you so that you can discourage them before they strike.
Here are some of the most common tactics used by thieves.
Price Switching
For a thief who doesn’t have much experience or may not be brave enough to walk out without paying something, price switching is an easy wayto steal from you.
Watch for stickers that look like they have been replaced or peeling sale stickers that obviously do not belong on the items.
This can easily be addressed with current point of sale systems.
Most provide a detailed description of the item and some even provide a picture.
Make sure staff look at each item and watch the item that comes up when they scan or enter the item.
Concealing Product
Walking out the door with an unpaid item is much easier if you can conceal it.
Watch for browsers wearing baggy clothing or someone wearing a large coat on a summer day, for example.
Large bags and backpacks are also red flags.
Many stores will have a bag check for large bags and backpacks.
You may think that is an additional cost for a dedicated staff person but stopping a few items from walking out the door will pay for that person pretty fast.
Keep an eye out for inventory collected around the store, for example a reusable shopping bag full of your product hidden in a corner.
A thief may be stashing items for a quick getaway.
Working Quickly
Usually, you will only realize your items have been stolen after the thief has left the building.
A professional shoplifter knows how to get in and get out without being spotted.
Have your employees on alert for people who may be moving quickly or looking suspicious.
Working In Pairs
Thieves will tag team so that one person distracts the employee while the other does the deed.
Whether you have one employee or many, a thief will wait for the opportune moment, usually during a busy period.
Keep everyone on alert, even when they are with other customers.
If you hear something knocked over in the store, or another irregular distraction, make sure one person attends to the problem and all other staff stay at their stations.
When showing customers high end items that are kept locked in cases be sure to show only one or two items at a time, and lock the case between showing items.
If a customer asks to see more than one or two items explain that you are happy to show them as many items as they would like to see but you are only allowed to have two items out at a time.
Make Sure Your Employees Understand Them Too
Create a code word for employees to use in the store if they see something suspicious.
This makes it easy for the employee to communicate to you immediately if there is something going on.
Share tips and tricks with your employees, such as talking to every customer, and behaviours to watch for.
Keeping your employees safe is more important than keeping your products safe though.
So make sure you train your employees on store policies, when to approach a shoplifter, and when to report them.
Set Up Your Store’s Layout To Deter Them
The overall layout of your store should be a consideration when looking for ways to reduce shrink.
This is easy to forget about if you’re in the middle of retail remerchandising.
Keeping higher priced items in more visible locations is always a good idea.
Having the point of sale beside the exit makes it necessary for visitors to pass by the cashiers on their way out of the door.
This acts as a hurdle to the shoplifter and may be the deterrent that prevents them targeting your store.
Ensure the store has good lighting, and that there are no blind spots where thieves can avoid detection.
Understand The Items They’re Most Likely To Steal
A shoplifter will generally target higher priced items that are smaller and easier to conceal.
Take stock of your inventory and make sure the more appealing items are well protected.
This could involve a locked cabinet, moving certain items behind the cash desk, or simply placing the product in a very visible location.
If you know you have a problem with a particular area or items employ regular shift checks or spot checks throughout the day or week.
Use Effective Inventory Management Systems
Analyzing your inventory regularly will also help you to determine which items are most popular to shoplifters.
Have a good retail inventory management system in place for your business and you will see which items are targets for high shrink.
Look at this information on a regular basis and use it to evaluate where you display your items.
Organize Your Store
In a clean and tidy store, missing inventory is much easier to spot.
Place items in an organized way at the front of shelves, so that it is easy to notice when they are picked up.
In busier seasons such as Christmas, make sure to assign regular tidying duties to the staff.
A messy store is an invitation to shoplifters.
Put Up Mirrors In Your Store’s Blind Spots
Does your store have blind spots?
Use mirrors and good lighting to illuminate and eliminate those blind spots.
A thief will think twice if they can see themselves (and you) in a mirror.
Set Up Security Cameras
You may think that security cameras are an unnecessary expense.
But in most cases, security cameras actually benefit your business.
- Cameras create a visible deterrent for thieves.
- Cameras allow your staff to see into areas that they may not otherwise be able to monitor.
- Cameras record evidence against a shoplifter who is caught in the act.
- If possible have a monitor visible to the customers – like the mirrors, if they see themselves on the monitor they may think twice.
As a further bonus, having cameras installed may reduce your insurance premiums.
Putting up a sign telling people they’re on camera, as well as being able to see a camera, can be a significant deterrent.
Speaking of which…
Put Up Theft Deterring Signs
You may think that a sign saying “shoplifters will be prosecuted” won’t do much to protect your valuable items from being swiped.
But signage reminds the potential shoplifter that you are watching.
Put your signs at the front entrance to tell everyone there are security cameras installed.
These reminders to shoplifters may be the reason they choose not to steal from you.
Provide Excellent Customer Service – No, Really
The number one way to reduce theft in your store is customer service.
Try your best to greet everyone, and make eye contact as they enter the store, acknowledging every new person with a smile.
Check in with customers frequently, offering to help them, but also reminding them that you are attentive and watching.
Staff your store adequately.
There’s nothing more inviting to a shoplifter than a busy store with very few staff members visible.
Beyond reducing theft, remaining focused on customer service has a number of other benefits, including:
- Turning customers into repeat customers
- Making it more likely your customers will leave positive reviews
- Encourage word of mouth advertising
- Grow your sales
- And more
Contact Silverman Consulting & Retail Services Today
Are you struggling with maintaining your business in light of shoplifting, decreased sales, or any of the many other issues challenging retailers today?
Are you thinking it’s time to get out of the retail business?
If so, we can help.
Book a consultation with Silverman Consulting and Retail Services today and we will help you find a way through.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069