security measures in retail

8/10/2019 Security Measures in Retail

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Security Measures inRetail

(Retail Loss Prevention)

Pres


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Contents

Why is Security needed in Retail?

Shrinkage and its Reasons

Reasons for Losses / Security Measures

Retail Loss Prevention

Role of Technology

Walmart-Asset Protection


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Why is Security needed in Retail?

Facts: More than $13 billion worth of goods are stolen from retailers each year. Tha

more than $35 million per day.

A study found that the average shrinkage rate (stock loss from crime or wast

expressed as a percentage of retail sales) for India is 2.90 per cent of sales. The Indian retail industry suffered a total loss of staggering Rs. 9,691 crore d

shoplifting and waste in 2007.


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Shrinkage

Shrinkage: Retail shrinkage is the portion of your inventory that gets lost or stolen. Your

shrinkage rate is expressed as a percentage based on the value of lost inventodivided by sales during the same period.


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Reasons of Shrinkage


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Reasons for Loss in Retail

Losses

DeliberateHuman Actions

InadvertentActions


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Deliberate Human Actions

Thefts

Fraud

Vandalism

Waste

Abuse/Misconduct


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Measures Against Deliberate Actions

Educate and Train Employees Staff should serve customers as soon as possible. Adequate number of working employees should be ensured. Employees should be trained to be aware and confident.

Physical Security Measures Elimination of blind spots by re arranging racks and counters. Display small items in cases that can be locked. Consider desirable levels of stock on the shelves.

Protective Equipment Protective Devices such as two-way mirrors, CCTV cameras etc. Tamper proof labels and security tags.


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Inadvertent Human Actions

Inadvertent human actions attributable to loss are: Purely poorly executed business processes Where employees fail to follow existing policies or procedures.


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Internal Loss Internal loss is shrinkage caused by individuals from within the business suc

staff members and cleaning staff and anyone else involved internally in thecompany.

Internal shrink accounted for 35% of shrink to businesses in 2011. Internal shrink is caused by methods such as staff members stealing products

cashiers keeping the payment for themselves, staff selling products to friends

family at discounted prices, sweet hearting where product is given for free tofriends and family by staff.


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Sources of Internal Loss

Sweet hearting describes a sales associate giving discounts,uncharged items, or fraudulent returns to friends or relatives. Inventory Voids- also known as merchandise shortage is the

difference between the recorded inventory and the actual physicalinventory

Embezzlement / Cash Theft


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Internal Loss Countermeasures

PHYSICAL SECURITY: Integration, Open Architecture, and Convergence Access Controls Locks and Keys Intrusion Detection Systems Interior Sensors Closed-Circuit Television Security Officers Safes, Vaults, and File Cabinets


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Carrot & Stick Approach

The carrot includes things like fair compensation, a good workingenvironment, employer sponsored activities that improve morale,good communication and concern for success of a company The oway is to reach some employees is through a stick of an effectivesecurity program and straight forward policy of prosecuting anyemployee caught stealing.


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Internal and External Relations

INTERNAL RELATIONS Customer Driven Security and Loss Prevention Programs Marketing Human Relations on the Job Management Support Orientation and Training Programs Loss Prevention Meetings


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Internal and External Relations

EXTERNAL RELATIONS Law Enforcement Public Safety Agencies The Community

The Media External Loss Prevention Peers


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Retail Loss Prevention Retail loss prevention is a set of practices employed

by retail companies to preserve profit. Profit preservation is anybusiness activity specifically designed to reduce preventable losse


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Technology in Retail Security


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CHALLENGES OF THE SECURITYINDUSTRY

Cooperation between Public Police and Private Security Regulation of the Industry

The Need for Training

Ethics The False Alarm Problem


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Walmart


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Walmart and Asset Protection The problem of retail loss is particularly acute for Wal-Mart. As the world's

retailer, with over $350 billion in annual revenues, it has the most to lose froshoplifting. Analysts estimate that Wal-Mart's shrinkage has risen from half tindustry average and is approaching 1%, with losses at about $3.5 billion a y

Asset Protection Department: Walmarts Asset Protection department is responsible for protecting

shareholders investments in the worlds largest retailer, as well as upholdingtheir promise of saving people money so they can live better.


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Thank you.

security measures in retail

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