Small business retail advice: how to reduce the cost of customer theft in your shop

Theft by customers hurst retail businesses financially and emotionally. Often, it is this second cost point that can har the business more as it can negatively impact on the mindset of business leadership.

Having a plan to mitigate against customer theft is key to reducing the cost on the business. This starts with knowing what is being stolen.

the cost of theft can be seen in your business profit and Loss as well a discrepancies revealed from stock take work. First, understand the problem. next, develop a plan.

1. Ensure all staff know about the problem.
2. Spot stock take weekly. Record the number stolen somewhere for staff to see. This sets a target for all.
3. Place a portable work table near the often stolen products and move most there such as product pricing, invoice checking or other tasks that could be easily done on the shop floor.
4. Ensure you have camera coverage of the location.
5. Place the stock so there are no blind spots that make theft easy.
6. Try other locations and see if theft declines.
7. Watch the location or stand from outside your business to see how shoppers interact with it.
8. Act based on your business data.
9. Involve the police if you get any actionable evidence.

The alternative is you complain about the problem and do nothing and that is not good management. Theft is something to be managed.

Consistent and unaddressed theft can erode the very foundation of a retail business. It can foster an environment of distrust and suspicion among staff, potentially leading to decreased morale and a less positive customer service experience. Implementing a proactive and data-driven strategy, as outlined, not only serves to minimize losses but also cultivates a more secure and confident atmosphere for both employees and honest patrons. This commitment to managing theft demonstrates responsible leadership and contributes to the long-term sustainability and reputation of the business within the community.

We helped a retailer discover regular theft in their shop and develop a plan for reducing this. The benefit in the first year was $20,000 returned to the business bottom line. In their case, people were stealing because they thought no one was noticing. No one was noticing until we said, hey look at this in your business data.

Our POS software can help local small business retailers reduce customer theft.