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Employee theft is a major problem for many employers in the United States, coming in at number two on the list of leading causes of inventory shrinkage (behind shoplifting/ORC), according to the 2018 National Retail Security Survey.
In the highly competitive retail sector, ensuring that the right product is on the right shelf at the right time is critical. Yet the problem of shelf out-of-stocks (OOS) remains as stubborn as ever. Could the LP team be the key to unlocking this new sales opportunity?
Contemporary loss prevention professionals still maintain responsibility for retail security. But they also must handle employee theft issues, data protection, safety and risk management, inventory audits, legal compliance, and matters related to organized retail crime and fraud.
There is little consensus on what constitutes “loss” within the retail world nor how it should be measured. The terms “shrinkage” and “shortage” have been loosely applied to encapsulate some of the areas that generate loss, but they are not terms enjoying a clear and agreed-upon definition across the sector.
The NRSS indicates that shoplifting accounted for 35.7 percent of the reported shrink in 2017, which is down from 39.3 percent in 2016.
Shoplifting is often viewed by professionals and amateur thieves as a low-risk versus high-reward business. As experts have documented, many shops and stores do not do enough to dissuade the rational criminal, who scans every environment for an opportunity.
A federal judge dismissed a racketeering lawsuit accusing Walmart and six other retailers of extortion by forcing accused shoplifters to take costly “restorative justice”...
From a loss prevention perspective, a strong understanding of how our inventory is managed is crucial as we attempt to resolve shrink-related issues. One basic but important component is knowing the inventory control techniques and accounting methods used by your company.