More Shrink Coverage
Loss prevention has long been a looming giant in the retail world, but now it’s no longer being shrugged off as the cost of doing business. Retailers everywhere are actively seeking out solutions, because for some, allowing shrinkage, theft and other losses to actively cut into profits year after year is unacceptable – it doesn’t just take money out of the pockets of the retailer; enough loss could also affect the customer.
In the United States alone in 2021, there was an estimated $94.5 billion in losses, increasing more than $4 billion from the year before. Due to this overwhelming number, it’s no wonder that 45% of organizations opted to increase their loss prevention budgets in 2022. This isn’t just about loss prevention, either. While maintaining the bottom line is an important part of operating a business, so is the safety and security of customers and employees. If criminals are allowed to run amok in a store, safety concerns could result in retailers losing patrons.
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Using Resources More Efficiently
Improving security starts with knowing how to allocate available resources effectively. With a wealth of options available and every vendor saying that its solution is best, retailers have a tough job ahead of them. Some will choose to spend budgets on employee-focused loss prevention strategies – focusing on employee training, hiring staff for the sole purpose of loss prevention or expanding overtime for more frequent inventory checks. However, businesses should also consider technology options for further analysis that can augment these loss prevention elements.
Until recently, loss prevention analysis was described as “a data desert” because of the limited ways to truly track where shrinkage and loss were occurring. Previously, beyond doing inventory checks, retailers struggled to find a way to truly track when, where and why loss occurred. This led many to seriously consider other ways to generate data and strengthen loss prevention programs. Fortunately, with the impressive advancements in smart surveillance technology, the answer to the “data desert” may finally be at hand.