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.
Almost two thirds of retail shrinkage is attributed to theft, both internal and external. The other third is attributed to errors and fraud.
Here's a breakdown from the Retail Council of Canada's Survey on how retailers estimated the impact of criminal activity on their annual shrinkage losses.
Ranked Retail Criminal Activity:
1. Shop Theft
2. Employee Theft
3. Customer Credit Fraud
4. Break and Enter
5. Vendor Fraud
6. Information Theft
7. Armed Robbery
8. Counterfeit Currency
The Retail Council reported that the average number of apprehensions of external criminals estimated by the retail survey respondents was 1,533 with a recovered dollar amount of $277,026. That is an infinitesimally small amount compared to the $4.6 million per day being lost to external retail theft in Canada.
Sonitrol Western Canada, can help solve these retail security problems with a security solution custom designed for retailers focused on reducing theft, break and enter, and armed robbery.
Our trusted Security Specialists give advice on what security systems are needed to protect your store. Whether you're a "Mom and Pop" shop, a luxury products retailer, or a national retail chain, we'll audit your location and its vulnerabilities and we’ll recommend the right security system for that location.
Sonitrol not only help retailers put in place a loss prevention security system, but also when our verified alarms go off, we get an immediate police response and therefore, we have the highest apprehension rate in the industry, and that equates to your product staying in your store until it is purchased.
Many retailers use basic security systems such as CCTV and DVR recording devices. These devices just record the theft but will not stop unpaid product from leaving the shelves. A verifIfied SonaVision security system will allow you to record, remotely view and allow us to dispatch the police to any criminal activity immediately. If you already have a CCTV system, SonaVision retail alarms monitoring can be added to your existing system.
The Retail Council summed up their survey by saying, "Given the significant impact that shrinkage has on the bottom line, managing and reducing it will be an increasingly important competitive advantage for Canadian retailers."
Look out for more retail security blogs coming your way over the next few weeks.
About Sonitrol Western Canada:
We're so confident in our technology and responsive service, that no one else in the industry can match our guarantee. Our unique verified audio and video business security solutions enable our operators to hear and see what is happening in your business before the criminals gain entry!! We verify the actual source of the alarm, and we get the police to attend the scene immediately. FOR A FREE RETAIL SECURITY AUDIT, click here, or call 1-866-766-4876.
Sonitrol Western Canada, with its Verified Electronic Security Solutions, is committed to providing customers with the most comprehensive security protection. Cooperation in the elimination of false alarms is not only beneficial to the system’s user, but results in better protection of the entire community by allowing law enforcement to use their resources as efficiently as possible.