Retailers too often struggle with cutting the cost of employee and customer theft. They ignore opportunities to block theft and turn their backs on understanding the cost in their business.
Here is best practice advice which, if followed, will reduce the cost of theft in any retail business.
- Only sell what you arrive, bring into the store, through Point of Sale software. If you track it you can know if it has been stolen or not. If you do not track it who knows if it is stolen.
- Track ALL sales – by scanning, touch screen button or PLU (product look up code), a hot key on your computer screen.
- Stop all department sales, sales where the employee gets to enter the amount of the item.
- Scan out ALL returns, products which are returned to suppliers.
- Undertake regular spot stock take throughout the business. The discrepancy between what you have and what the system has reflects theft.
- Reorder stock using your retail management software. This stops poor buying decisions. It also identified stock theft and employee fraud around stock.
- Use employee initials, codes or bar codes against each sale. Yes, this adds time to each sale. The benefits far outweigh the time cost.
- Set an end of shift balance target of $5.00. Many retailers achieve this – it takes discipline.
- Change your system passwords regularly. Make it a condition of employment that these passwords are never shared.
- Do random, during the day, register balance checks. Check that the cash your computer system thinks should be in the cash drawer is what is actually in the cash drawer.
- Use your software to check and report on behavior which could indicate employee theft.
- Follow your suspicions regardless. Put your business ahead of friendships..
The cost to any retail business of customer and employee theft can be significantly reduced. The keys are retail owner and management engagement, full use of the software and relentless application of a zero tolerance approach.