A Checkpoint System Delivers Shortage Reduction And Increased Sales Simultaneously

Checkpoint Security System-4                                                                                       WC Blog 309
Checkpoint Tags-3
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A Checkpoint System Delivers Shortage Reduction And Increased Sales Simultaneously
     I recently read an article that made me want to shout “HALLELUJAH!” The article was discussing the suggestion some make that they can cover store merchandise shrinkage with increased sales. The writer did not discount the value of increasing sales to reduce the impact of shortage, but he made several cogent points that I found myself nodding in agreement to. In the article, “Relying on Sales Won’t Eliminate Causes of Shrinkage”, by Adam Smith, CFE, CFI, dated Feb 16, 2017 in LPMINSIDER magazine, Mr. Smith uses an illustration of a store with $1 million dollars in sales and a 2% shrinkage as a percent to sales. He demonstrates how an increase in sales does in fact reduce shrink, but likewise a store with declining sales sees an increase in shrink. A little further in the article he points out that it took “a 9% sales increase to break a .1% reduction in shrink” (emphasis mine). His overall point is that there has to be balance between increasing sales and a continued focus on shortage reduction. I agree with a strategy of driving sales and improving shrinkage and I would argue that stores can impact both when they invest in a Checkpoint Security System.
     Retail theft prevention includes the deterrence of employee theft and efforts to stop shoplifting. A Checkpoint Security System involves the use of Checkpoint tags on products making it clear to would-be thieves that attempting to take an item will cause an alarm at a Checkpoint electronic article surveillance (EAS) tower near the front doors of a store. Since store associates are generally responsible for more theft than shoplifters, the tags act as a deterrent to them as much as they do to shoplifters. The EAS towers activate a loud alarm signal and flashing lights when Checkpoint tags are carried close to them. This alarm provides warning to sales associates that an attempt to steal may be in process and they can conduct receipt checks to recover merchandise before it is walked out the door. In this way they do stop shoplifting and demonstrate to criminals that the store takes theft seriously.
     A Checkpoint security system is as much a sales driver as it is a reducer of shrink. Often stores lock up merchandise in display cases or reduce quantities of merchandise on a store shelf and it does work. It is more difficult to steal merchandise when it is in a showcase and limiting quantities on a shelf does reduce how much can be stolen at one time, however I can tell you from experience neither one will completely stop shoplifting or employee theft. It also hinders the customer’s access to merchandise and therefore has a negative impact on sales. Customers don’t want to wait for employees to come to their assistance to open a display case in order to browse merchandise. Often it is annoying to have to point to something, ask to look at it, then have it put back so you can look at the next item. Usually retailers allow no more than two items out of a lockup case at any given time so it is a back and forth game. When that locked up merchandise can be protected with retail theft prevention tags and devices and removed from a lock up display customers can browse at their convenience and carry items with them while they continue to shop. When they are ready they check out without waiting for an associate to bring an item to the checkout counter. 
     Reduced merchandise facings or quantities to deter theft can also limit the customer who may want more of an item but chooses not to look for help. Few people will wander through a store to find assistance to find out if there is more of an item in a stockroom. Today’s consumer tends to want in and out of a store in a hurry and has little patience for waiting. If the consumer sees they have picked up the last item, even if they wanted another they don’t wait to see if someone will check on it for them and the store loses that sale.
     A Checkpoint Security System can stop shoplifting from taking place and reduce shortage in the process. Checkpoint tags can give you confidence to fill the salesfloor, improve store in-stocks and make merchandise accessible, leading to increased sales and profit. 
Get more information on Checkpoint Systems, contact us or call 1.770.426.0547 today. 

I recently read an article that made me want to shout “HALLELUJAH!” The article was discussing the suggestion some make that they can cover store merchandise shrinkage with increased sales. The writer did not discount the value of increasing sales to reduce the impact of shortage, but he made several cogent points that I found myself nodding in agreement to. In the article, “Relying on Sales Won’t Eliminate Causes of Shrinkage”, by Adam Smith, CFE, CFI, dated Feb 16, 2017 in LPMINSIDER magazine, Mr. Smith uses an illustration of a store with $1 million dollars in sales and a 2% shrinkage as a percent to sales. He demonstrates how an increase in sales does in fact reduce shrink, but likewise a store with declining sales sees an increase in shrink. A little further in the article he points out that it took “a 9% sales increase to break a .1% reduction in shrink” (emphasis mine). His overall point is that there has to be balance between increasing sales and a continued focus on shortage reduction. I agree with a strategy of driving sales and improving shrinkage and I would argue that stores can impact both when they invest in a Checkpoint Security System.
     

Retail theft prevention includes the deterrence of employee theft and efforts to stop shoplifting. A Checkpoint Security System involves the use of Checkpoint tags on products making it clear to would-be thieves that attempting to take an item will cause an alarm at a Checkpoint electronic article surveillance (EAS) tower near the front doors of a store. Since store associates are generally responsible for more theft than shoplifters, the tags act as a deterrent to them as much as they do to shoplifters. The EAS towers activate a loud alarm signal and flashing lights when Checkpoint tags are carried close to them. This alarm provides warning to sales associates that an attempt to steal may be in process and they can conduct receipt checks to recover merchandise before it is walked out the door. In this way they do stop shoplifting and demonstrate to criminals that the store takes theft seriously.
     

A Checkpoint security system is as much a sales driver as it is a reducer of shrink. Often stores lock up merchandise in display cases or reduce quantities of merchandise on a store shelf and it does work. It is more difficult to steal merchandise when it is in a showcase and limiting quantities on a shelf does reduce how much can be stolen at one time, however I can tell you from experience neither one will completely stop shoplifting or employee theft. It also hinders the customer’s access to merchandise and therefore has a negative impact on sales. Customers don’t want to wait for employees to come to their assistance to open a display case in order to browse merchandise. Often it is annoying to have to point to something, ask to look at it, then have it put back so you can look at the next item. Usually retailers allow no more than two items out of a lockup case at any given time so it is a back and forth game. When that locked up merchandise can be protected with retail theft prevention tags and devices and removed from a lock up display customers can browse at their convenience and carry items with them while they continue to shop. When they are ready they check out without waiting for an associate to bring an item to the checkout counter. 
     

Reduced merchandise facings or quantities to deter theft can also limit the customer who may want more of an item but chooses not to look for help. Few people will wander through a store to find assistance to find out if there is more of an item in a stockroom. Today’s consumer tends to want in and out of a store in a hurry and has little patience for waiting. If the consumer sees they have picked up the last item, even if they wanted another they don’t wait to see if someone will check on it for them and the store loses that sale.
     

A Checkpoint Security System can stop shoplifting from taking place and reduce shortage in the process. Checkpoint tags can give you confidence to fill the salesfloor, improve store in-stocks and make merchandise accessible, leading to increased sales and profit. 

 

Get more information on Checkpoint Systems, contact us or call 1.770.426.0547 today.