The shrinkage of stocks in the retail business is a real threat. It is more attractive for retailers to learn about the latest trends, strategies to drive sales and focus on new customer acquisitions than to think about shrinking stocks. In fact, by creating a theft prevention strategy, you can find benefits that have been missing without you knowing it.
To help you recover your profit from stock shrinkage, you can look at some loss prevention strategies to help reduce shrinkage in your retail business below.
One of the main causes of shrinkage is fraud when returning products. Therefore, to keep the scammers from coming back, you can take the time to create an official product return policy, especially if you don't have one yet.
To overcome the risk of return fraud to be minimized from irresponsible people, you can do the following things:
The team can directly monitor the movements in your retail business buying and selling transactions. Thus, they must be equipped with knowledge about what things are suspicious to reduce any risk. In addition, your team must also be careful in carrying out operations on goods that are sold in your retail business. Your team must ensure that the items being sold are not lost or damaged.
Take into account the layout of your shop, display, and the location of purchase to make it easy to monitor. Apart from reducing the threat from theft, the appearance of the condition of your business premises must also be neatly arranged. This is intended so that the storage of your merchandise is not careless, so the merchandise is not damaged and has its quality reduced.
In some cases, the use of technology in a retail business has been shown to be able to provide significant benefits. Stock shrinkage can be reduced by using good and correct technology. You can use inventory management software so that the organization in the supply of your merchandise can be recorded properly.
Performing regular inspection of every merchandise you sell can reduce the risk of stock shrinkage in your retail business. In that case, you can create a checklist of existing loss prevention policies and procedures. After that, you can conduct an evaluation in performing regular audits of your retail business.
Having a retail business is very profitable. However, there are also some risks that can come to the business. Regarding this, you can evaluate several aspects above so that your retail business does not experience stock shrinkage. As a result, your retail business can get significant profits.
Leverage digital checklists such as Nimbly to digitalize the inspection process in your retail business and reduce stock shrinkage.