Business Shrinkage

Shrinkage

It is up to every employee to keep a handle on it.

Srinkage is money or merchandise loss from a business. A retailer's success is dependent on the amount of shrinkage it experiences.

Shrinkage comes in various forms. Typically, 50 percent comes from employee theft, 30 percent from shoplifting and 20 percent from delivery theft.

 

Employee theft

Report to management any employees involved in theft. There are no excuses. It is a crime which affects everyone!!

Delivery theft

  • Prevent shrinkage by doing good inventory counts on deliveries.

  • Making sure that deliveries don't get taken back out.

  • Be suspicious of delivery persons who:

    • Make deliveries at busy times.

    • Count invoice delivery items fast.

    • Are overly friendly. Make simple mistakes.

    • Substitutions-slightly different than what was ordered.

    • Hangs around after the delivery.

       

Shoplifting

Prevention without arrest

  • Work to prevent rather than apprehend.

  • Think profit not loss.

  • Be aware that a shoplifter can be anyone... and they are coming to your store!

If you witness a shoplifting, there are options to arrest

  • Ask how they wish to pay for the item or if they would like something to go along with the item.

  • If they are uncooperative let them go.
    Call 911!
    It's not just for emergencies.

Customer service to prevent shoplifting

  • Greet the shopper and keep an eye on where they go in your store.

  • Watch the shopper that is watching you.

  • Trust your instincts...if you suspect someone, stay with them....extend more courtesies and extra attention.

  • Ask a co-worker for help.

  • Carry a portable phone.

  • Call 911!
     

How to spot false IDs

  • Accept only driver's licenses.

  • Check the physical description.

  • Check the signature and photo.

  • Check the area of the photo.

  • False IDs have been made by sliding a different photo in and over the original. There will be some indication of tampering.
    If this type of ID is presented along with a check, it is probably a forgery...

  • Call 911!

How to spot bad checks 

  • Check for alterations in account numbers (i.e., changing a 3 to an 8).
  • Verify the amount and date.
  • Look for poor print and paper quality.
    If you have a question about any crime in progress, a second opinion is just a phone call away...
  • Call 911!

Credit card fraud

Watch for suspicious behavior

  • While any of the following can occur in a perfectly legitimate transaction, these characteristics are frequently present during fraudulent transactions. Be alert for the customer who:

  • Takes the card from a pocket instead of a wallet.

  • Purchases an unusual amount of expensive items.

  • Makes random purchase, selecting items with little regard to size, quality or value.

  • Makes several small purchases to stay under the floor limit.

  • Signs the charge slip slowly or awkwardly.

  • Charges expensive items on a newly valid credit card.

  • Cannot provide a photo ID when asked.

  • Hurries you at closing time.

  • Purchases a large item, such as a big screen television and insists on taking it at the time, even though delivery is included in the price.