The store I work for is preparing for inventory and that preparation has made me think about electronic article surveillance and other things that make a difference in store shortage results. As a Loss Prevention Manager with 13 years of experience and an additional 5+ years of Retail Loss Prevention Associate experience I have a number of pointers I would like to share. My tips are just those, tips and suggestions but they served me well in my work in big box retail stores so they can help you too. What are some of the issues that can have a negative effect on a store inventory and what are the solutions?
Problem: The biggest obstacle to ensuring you have great inventory results is a failure to use clothing security tags and electronic article surveillance towers in your store. Without merchandise protection shoplifters and dishonest employees are free to steal and there is no way to recover these losses.
Solution: Install electronic article surveillance towers at your points of entry and exit. Also, use clothing security tags on all of the merchandise your store sells.
You may be wondering what good this will do in preparation for this year’s inventory if it isn’t going to have an immediate impact. I will discuss that after I clarify what hard tags are and how they work.
Clothing security tags are retail anti-theft devices that are attached to merchandise and will activate alarms in electronic article surveillance towers. Tags can be hard tags that pin to merchandise and require a specially designed detachment tool to remove them. They also come in a soft label version that is peeled from a roll and adheres to product packaging or manufacturer tags. This type of tag cannot be removed but has to be deactivated at the point of sale where the pads are usually located. Both styles of tags provide a visible deterrent to shoplifters who might try to steal the products. As mentioned the tags also set off alarm towers when the protected merchandise is carried into the detection area of the towers. Alarms elicit employee response and merchandise is recovered from the bad guys. I should also note that they aid in preventing accidental loss when a cashier misses Bottom of Buggy items that are tagged.
What other obstacles can impede great store inventories? Other things I have encountered over the years include:
Problem: Insufficient store preparation. Failing to look through all the places merchandise can fall or become hidden.
Solution: Take the time to look under fixtures and on top of display cases for merchandise that may have fallen or been placed there by a customer. Also do a thorough inspection of stockroom areas for possible stray items. Cash register stands are notorious for small items dropping into nooks and crannies. I have found merchandise tossed on top of sunglass fixtures and inside of trash cans we sold. I have also found stashed goods in drink coolers and desk drawers. Rule of thumb, if it opens look inside of it.
Problem: If you have merchandise on peg hooks and items get mixed up you could wind up with incorrect inventory counts. For example a peg hook may have a certain type of pen on it. If the first pen pack is not the same as the others and the inventory crew scans it and only counts the pieces behind it for a total quantity it will throw off inventory numbers.
Solutions: Have someone go through a few days before inventory and inspect all of the peg hooks. If you have too many pegged items, split the job up but get it done. Even if the packages are the same prices the store inventory counts will be off.
Problem: Theft on inventory night by inventory or store personnel.
Solutions: Be sure all items have clothing security tags on all merchandise and have someone monitoring the electronic article surveillance towers. Should an inventory team member or a store employee attempt to steal, you will have a chance to recover it at the towers.
Problem: Counters who are inaccurate.
Solutions: Be sure to have random audits of all areas. I suggest focusing on last year high shrink departments and high dollar departments such as jewelry.
While all the problems you could come across can’t be listed this is a good starting point. Loss Prevention Systems Inc. is also a great resource for information and technology to help you prevent theft and fraud in the future. They can help you improve your shortage results and make your store more profitable.
Need information on clothing security tags? Give us a call at 1.770.426.0547 now.
