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Business Tips

Effective Tips For Avoiding Losses In Your Retail Business

It is not surprising for a business to incur losses. According to UK retail research, 34.6% of all retail losses resulted from external shoplifting. Indeed, many things fall under retail business loss, and it’s worthwhile to know about them to help plan against the repercussions on revenue. While they are common business problems, there are several ways to avoid them, including the following. 

Focus on proper store organisation to minimise shoplifting

One element that makes it possible for shoplifters to ply their trade that easily is a poorly-arranged store. The absence of active security and attention to detail makes it easier to lose items daily. On the other hand, store organisation thrives on the strategic arrangement of goods in the shop.

Maximum visibility plays a vital role here. First of all, you can begin with stocking higher-value items in a part of the store where security cameras can easily capture them.

supermarket

A more common strategy used by many UK stores is to position higher value goods around the cash register or till. This way, a potential shoplifter would be discouraged from swapping packages or slipping a portable item into their jackets.

Apart from item positioning, you may want to install mirrors in strategic areas of your retail store. This helps staff to keep an eye on shoppers without being too close. Retail stores prefer to use locked displays accessible only by authorised store staff in certain places. The chances of a shoplifter breaking these glass displays are tremendously lessened.

Use apps to reduce return fraud

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Over the years, the UK has dealt with many return fraud cases, and shops have had to face the consequences of losses. Return fraud is increasingly present in online retail businesses. It occurs when people buy an item online with the sole purpose of returning it for monetary gain.

This happens a lot because these scammers have devised a way to use retail store return policies against them. Therefore, by returning a supposedly damaged online item, these scammers benefit at the expense of the retail store.

Research has also shown that this is prevalent in online retail clothing stores. It operates by purchasing a clothing item online only to return the product because it failed to meet the size requirement. As a store owner, you can stop this trend by getting a size chart app on your website.

With this app, online shoppers can be sure of their body measurements before ordering clothes from your e-shop. This technique eliminates the chances of a scammer buying clothes and returning them under the guise of being given the wrong size.

Use technology to your advantage 

The 21st century has become synonymous with digitisation and technology for many reasons. Technology cannot be underestimated in the retail sector, especially in preventing loss. CCTVs, POS inventory tracking, and several other digital tools help reduce or eliminate retail business loss. Still, on the technology subject, there are digital apps that also help streamline profit shortfalls. Some examples are merchandising security apps used in these stores.

Last but not least, your store employees can be trained to spot suspicious behaviour among internal and external customers. Sometimes, the losses you record are not necessarily committed by people outside. Instead, one or two employees from within might be the orchestrators.

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