Every retailer knows that carelessly handled inventory and internal “shrinkage” can add up to a serious bottom-line problem. But when your inventory is literally made up of precious gems, lots of gold, high-end custom jewelry, and the most expensive luxury handbags and fashion accessories you can imagine, a single item of lost inventory can add up very quickly indeed, and the "loss" of more than one item can be financially huge with a large impact on your bottom line.

 

Add to this the temptation that a random smash-and-grab thief may have, or the specific targeting of a luxury goods store by sophisticated and organized criminals, often armed, then you'll quickly see the need and importance to have a top quality security solution.

 

 

March is fraud prevention month in Canada and I thought we should end our series of fraud blogs talking about consumer fraud and how it can impact a business and some of the basic security measures you can take to prevent this type of fraud.

Consumer fraud is a well-known practice that typically results in financial losses for consumers.  But did you know there are also types of fraudulent practices committed by consumers that can have a devastating affect on your business?  

The Retail Council of Canada reports retail theft costs $4 billion a year, an average loss to retailers of $10.8 million per shopping day!

    

And according to Calgary Police Service’s Crime Prevention Unit, organized retail crime is on the rise.  Combined with employee theft, counting errors, damaged goods and fraud, it is forecast that retail shrinkage will become even more damaging to your bottom line.

How can you protect your business from organized retail crime?  

There are hundreds security companies out there who will sell you low end, inadequate consumer monitored security products; such as surveillance CCTV cameras, listening devices, motion detectors, and various alarms that look cool and some working off smart devices - but will they properly protect your business?

The so called security companies that sell you these "low-end' security alarms, may impress you with the latest technology, but it's very likely they don't have the security experience and expertise to recommend a fully integrated central station monitored security system that will really work to protect your premises, assets and employees. They primarily want to sell you any security device, maybe install it for you, and then the relationship is over.

When looking at a security system, you have to consider your responsibility as it relates to business risk, your insurance policy and your employee safety, and going cheap with a self monitored systems is not recommended and will cost you when a crime is committed.

Sonitrol Western Canada Is A Different Type Of Security Firm

 

The Retail Council of Canada reports retail theft costs $4 billion a year, an average loss to retailers of $10.8 million per shopping day!

The loss of inventory because of employee theft, customer theft, organized crime, counting errors, damaged goods, or fraud is called Retail Shrinkage, and it has a big impact on a retailer's bottom line.  

If you're a retailer, you're well aware of how costly and time consuming it is to manage loss prevention. In a recent Canadian Retail Security Survey, by the Retail Council of Canada, they found that shrinkage has been increasing since 2008, and is now approximately $4 billion a year.  That's an average loss to Canadian retailers of $10.8 million per shopping day! 

Shrinkage losses are a constant battle and not only hit the bottom line, but indirectly cost retailers time and resources for loss prevention management. The survey found that retail chain stores spend on average 2% of sales dollars on loss prevention.  Every retail storeowner needs to think seriously about preventing theft from a profit and loss perspective, but more importantly, they need to understand their responsibility in providing employees with a safe work environment, especially in the case of a violent armed robbery.

Retail stores that are very vulnerable to theft, and especially armed robbery, must invest in improving their security systems. Many just have cheap CCTV systems bought off the Internet with no real security features. Retailers cannot put the lives of their store employees on the line. Your local Police are experts in handling armed robbery situations and the sooner they're aware of the crime in progress the better.

 

Across Western Canada there are tens of thousands of CCTV cameras protecting valuable business assets that do nothing more than record what's going on.  In some cases these cameras are watched by an expensive on-site security guard who really does try to stay awake watching a static CCTV monitor for activity.

 

Most CCTV security systems don’t have a human watching them live and are either naively used as a visual deterrent, or people only view the recorded CCTV footage retrospectively, and get to watch the break-in after the fact, after the criminal has gone, and the damage has been done.

 

 

As small business owners know only too well, the threat of burglary and theft traditionally rises during the summer months – with longer holiday weekends and staff taking more vacation days, especially in August, when the summer days are getting hotter.

 

While one of the benefits of being a small business owner is having the flexibility to take time away from work, it can also compromise the safety of the business, overall, leaving it more vulnerable to burglaries, property damage and vandalism. 

 

The following “top ten” small business security measures can be used to protect a businesses’ physical property, inventory and sensitive information against crime: 

 

One of the differences of Sonitrol vs. other conventional alarm companies, is the fact that we have well trained, security consultants on staff (Not Salesman) who are able to provide you with professional, unbiased advice on how to protect your property.

 

We particularly enjoy meeting retail business owners and taking the time to give advice on how a retail business can improve store security. 

 

Back in November, just before consumers packed the malls and small neighbourhood shops, Crime Stoppers ran a campaign to make people more aware of retail crime.

Crime Stoppers purchased radio ads, distributed flyers, and promoted a slick interactive website - www.ItCostsUsAll.com where members of the public could participate in an onine poll to vote for stiffer penalties for retail theft.

 

Surprising Statistics From Crime Stoppers About Retail Crimes In Canada