A Blind Spot in Reporting Solutions?
By Adam Creamer
When it comes to inventory shrink there are
many factors that can contribute. Often the first thing that
comes to mind is shoplifting or organized retail crime, and
why wouldn’t it? Shoplifting shows up in the news more
often, it’s what we see most. But when it comes down to it,
this is only the second biggest contributor to shrink. The
largest contributor is employee theft, which accounts for
about 44.2% of all shrink according to the National Retail
may not come as a surprise to some. It has been fairly
common knowledge that employee theft has been a large
contributor to shrink for awhile now, so why bring it up
again? Because employee theft is the LARGEST contributor to
inventory shrink, yet many tools still ignore this and focus
on shoplifting. It’s not unheard of for reporting tools to
tolerate smaller levels of employee fraud either.
It’s safe to say that reporting solutions, and retail as a
whole, has shoplifting prevention down to a science. Yes it
may still be a big issue, but look at how its effect on
overall loss has shrunk over the years. That’s thanks mostly
to the constant stream of systems and devices designed
specifically to prevent shoplifting. So what’s the problem?
Very few tools that exist today help with employee theft,
and the ones that do don’t make it a priority.
What retail needs now is a tool that focuses on employee
theft first, while keeping shoplifters at bay. The amazing
thing is that some tools like this already exist, one of
them being our own Retail 20/20. These tools have to
potential to change the asset protection field as we know
it. You would be amazed at the shrink you’re not seeing just
because your current tool oversees it. The National Retail
Security Survey and others like it continue to show that
employee theft is a big problem, proving that solutions like
Retail 20/20 are needed to turn around the trend.