In the retail world, one of the worst topics of conversation is shrink. This typically includes areas like shoplifting or internal theft. However, it can also be affected by poor reporting and faulty point of sale systems. If items are not rung up properly during a transaction or if sales numbers are not integrated with inventory systems, this leads to missing product and increased shrink numbers.
The 2012-2013 Global Retail Theft Barometer was released this week and the results show how prevalent retail loses are. According to the numbers, shrink cost retailers more than $112 billion last year, which represents 1.4 percent of retail sales on average.
An article from Security Info Watch that recaps the survey featured an interview with Dan Reynolds, vice president at Checkpoint Systems – which helped support the study. He mentioned that retailers can continue to do everything right and still fall victim to shrink. The strategy is to have quality equipment and trained employees ready to go.
"You have a lot of turnover at some of the retailers. We found that when you don't have that turnover and you have a good manager in the store, the shrink falls," Reynolds explained. "But, when you have higher turnover, it is harder to instill the disciplines and focus on store shrink."
By partnering with a retail solution provider that offers POS software, any merchant can roll out a new solution that will improve reporting and help streamline all transactions, cutting down on mistakes that lead to shrink.