Seven Key Steps Aid Loss Prevention
One of the biggest challenges facing convenience store managers is finding ways to reduce losses and shrink in their stores, because losses so clearly affect the bottom line, according to a piece in Executive Technology. Surveys by organizations as the National Association of Convenience Stores (NACS), reveal that close to 80% of losses can be attributed to employees.
Stores that have been successful in dealing with this problem are those that follow seven specific steps that represent both the implementation of technology and the cultivation of a culture of coaching employees.
- Teach proactive loss prevention.
- Leverage automated solutions. Three areas in particular have been proven to yield superior information and return on investment: automated DSD receiving, automated scan file audit systems and automated cashier performance monitoring systems.
- Respect written policy and procedure statements. C-stores that take the time to write out their procedures for loss control succeed at higher rates than those that do not.
- Shrink-proof customer service. Although employee-caused shrink may be a major problem, properly trained and motivated employees will also be your best keys to solving your shrink problem.
- Keep your eye on the ball. Results are what count. Look for financial indicators that let you see or monitor your shrink.
- Remember that people don’t do what you “expect,” they do what you “inspect.”
- Realize that loss prevention management needs to be an inherent character trait of the organization and is the responsibility of everyone in the organization.
Moderator Comment: What are the most successful methods
for reducing shrink in convenience stores and other retail operations? [George
Anderson – Moderator]
Key Steps to Loss Prevention Effectiveness in Convenience Stores – Fairchild’s