Is your business not growing as you expected?
Do you suffer from Inventory Shrinkage, but cannot determine the cause?
Is your business losing popularity but you don’t know why?
ARE YOU AWARE OF THESE FACTS?
Many businesses face losses from these areas:
Employee Theft
38.4% of annual shrinkage loss
- Shrinkage at the register
- Merchandise out the back door
- Ringing up sales on the “no sale” key
- Fictitious voids or refunds
- Sweet-hearting – giving away merchandise to friends and family
FACT: Employees steal when two things exist: NEED + OPPORTUNITY
Shoplifting
35.8% of annual shrinkage loss
- Less than 1 in 50 shoplifters is ever caught.
- Estimated $25 Billion per year in shoplifting losses in the U.S.
FACT: The #1 Reason for shoplifting: IT WAS EASY! NO RISK.
Employee Productivity
- “When the cat is away, the mice will play”
- Overtime payroll that may be unnecessary
- Employees are more productive under supervision
- 21% of employees will not steal
- 13% of employees will steal
- 66% of employees will steal if they see others steal
- 75% of internal theft is undetected.
FACT: Employee theft costs between 1/2%-3% of a company's gross sales.
Vendor Theft
- Short deliveries by vendors are common
- Employees do not always count every item delivered
- Vendor theft accounts for 15% to 20% of store shrinkage
FACT: Vendor theft is 7% of a retailers total loss
Poor Customer Service
- Causes Loss of Business
- Customer Service is the #1 factor is a customer’s decision to return as a regular customer. Southland Corporation (7-11 Stores) claim that 68% of customers who quit coming to the store, quit due to the attitude of their employees.
FACT: Most customer service incidents result in the loss of a minimum of ten customers.
Armed Robbery
- Fueled by the ever growing drug problem
- Motivated by the ability to get quick cash
- Armed robbers’ only fear is of being caught
- Armed robberies average over $2410.33 per incident
FACT: Retailers lost about $501 million in 2007 due to armed robbery
