Social Issues

It is estimated that crime is costing the FMCG industry more than R3 billion* a year. And it's not a South African 'thing' either – the average shrinkage from stores in Western Europe in 2001 amounted to 28,9 billion Euros – that's the total retail turnover of Norway!
And it's not shoplifting that's the major culprit, but employee theft, with admin and vendors also contributing.

Here are some practical and insightful tips:

1. Don't think you can get rid of the problem if only you had the 'right' people. 90% of us steal when presented with a suitable item and a chance of getting away with it. Although screening new employees is an important part of security measures, shrinkage it is not a character thing – it's a situational thing – the idea is to change the situation.

2. Tidy up your system – you can only notice something's out of kilter if the rest is in kilter.

3. Start organising your system from the back, not the front. Begin with goods receiving – usually the 'crime scene'. Depending on the nature of your retail store, shoplifting is probably a distant second.

4. Poor people don't necessarily steal – people who perceive the absence of a capable guardian steal. Forty percent of total apprehensions in the UK were management, including security officers - basically people who are unsupervised.

5. Use the Golden Hour (the employee's first hour at his/her new job) to promote your efforts against shrinkage. Set the attitude towards theft –– label shrinkage as unacceptable and share the consequences. It also makes employees more aware of the fact that, because it's important, resources are dedicated to it and that 'someone's always watching'.

6. Don't over-invest in fixed systems. All measures are transient. It is a dynamic activity that requires constant attention. Shrinkage is about getting around the system. Don't think that just because you spent a fortune in loss-control measures last year, it must cover you for this year. Any system...