Grocery industry at high risk of theft
Grocery industry at high risk of theft
So the question is what can be done to reduce theft?
Often the services of a security professional can help in reducing losses. It should be viewed as a small investment that can save you in thousands of dollars in a relatively short period of time. In many cases, simply improving lighting, reducing hidden areas and displaying anti-shoplifting signs and posters can be helpful as well as inexpensive. I often recommend that every isle should be equipped with a large surviallance dome preferably smoked. Some of these domes can have a fully operational camera, while others can be left empty. The important thing is to make the potential thief think twice. In some cases simply a employee walking up and down the isles talking and connecting with customers can help.
Most grocery stores have a razor thin profit margin on the merchandise they sell therefore it is imperative for shrinkage to be kept to a minimum. For example with a profit margin of 5% a store must sell 500 dollars in merchandise just to cover the cost of a 25.00 dollar item. In one year a store with merely twenty five dollars of losses a day must increase sales by 175,000 dollars to break even. Keep in mind that for many supermarkets 5% profit margin is high as some grocery stores work on a 2% or 3% margin and a 25 dollar per day loss in a high volume industry is grossly underestimated. But for demo purposes it gives you a fairly good idea of how theft can quickly add up. It is important to recognize that even a small amount of theft can have a sever impact on a companies bottom line.
Grocery industry at high risk of theft - To learn more about this author, visit Fred Tarasoff's Website.
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In the past grocery stores primarily sold grocery items but today the average grocery store has expanded in size and product line to become a “full service, one stop shopping” experience. The list of inventory has expanded from your basic staples to higher end lines of health and body care, pharmaceuticals, vitamins, and even electronics. The type of shoplifter has also changed. In the past the average shoplifter was an individual who stole only groceries perhaps to feed a struggling family or to finance an addiction and now in many cases it has become a highly organized operation where thieves or groups of thieves can lift several hundreds of dollars worth of high end merchandise in one visit. In most cases the prime motivation is the resale of these stolen goods. During my research for my Shoplift Prevention Training Program I interviewed almost 300 shoplifters in order to learn more about the shoplifters tricks of the trade. Interestingly many interviewed shoplifters told me they preferred stealing from a grocery store environment because it was relatively ease and low risk or getting caught. Many thieves claim that grocery stores are one of the easiest targets in the retail field. First most grocery stores have very little in the form of anti-theft security devices. Those that have limited surveillance equipment are usually easy to outsmart. Stores often have many hidden areas with in the floor space that create the ideal conditions for thieves to “lift and pocket” items. The grocery industry often relies on the services of LPO’s (Loss Prevention Officers) to limit theft. Generally LPO’s are considered effective in foiling attempts by amateur impulsive shoplifters who in a moment of weakness may stuff a bag of pistachios in their pocket. But when it comes to the seasoned thief or the pro, LPO’s are relatively easy to spot. Most experienced thieves can recognize a “Loss Prevention Officer” simply by their actions and mannerisms. The shoplifters which I had interviewed claim that LPO’s rarely prevent them from stealing, they either comeback at a different time, or will move the items of interest into a different isle before stealing them.
So the question is what can be done to reduce theft?
Often the services of a security professional can help in reducing losses. It should be viewed as a small investment that can save you in thousands of dollars in a relatively short period of time. In many cases, simply improving lighting, reducing hidden areas and displaying anti-shoplifting signs and posters can be helpful as well as inexpensive. I often recommend that every isle should be equipped with a large surviallance dome preferably smoked. Some of these domes can have a fully operational camera, while others can be left empty. The important thing is to make the potential thief think twice. In some cases simply a employee walking up and down the isles talking and connecting with customers can help.
Most grocery stores have a razor thin profit margin on the merchandise they sell therefore it is imperative for shrinkage to be kept to a minimum. For example with a profit margin of 5% a store must sell 500 dollars in merchandise just to cover the cost of a 25.00 dollar item. In one year a store with merely twenty five dollars of losses a day must increase sales by 175,000 dollars to break even. Keep in mind that for many supermarkets 5% profit margin is high as some grocery stores work on a 2% or 3% margin and a 25 dollar per day loss in a high volume industry is grossly underestimated. But for demo purposes it gives you a fairly good idea of how theft can quickly add up. It is important to recognize that even a small amount of theft can have a sever impact on a companies bottom line.
Grocery industry at high risk of theft - To learn more about this author, visit Fred Tarasoff's Website.
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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