October through January are when store not only see their biggest sales volume of the year, but also account for about half of all annual shrinkage.
The shrinkage that is made up of missing goods from shop lifting and other causes accounts to about $42 Billion dollars a year. The cost of this shrinkage is passed along consumers in the amount of $335 per year per American household according to the global retail theft barometer. The rate at which US employees steal from there employers is nearly the highest in the world, second only to Argentina. Globally, dishonest employees are behind about 28% of inventory losses. In the United States that number is drastically higher at 43% of lost revenue. This translates into a 54% higher impact for US based businesses.
When most retail business owners think of shrinkage, shoplifting usually is the first thing that comes to mind. In reality the impact of employee theft is fifteen times the amount as the average shoplifter. Often overlooked causes include ineffective pre-employment screening, inadequate employee supervision, as well as the ease of sale of the stolen merchandise.
Some of the most common ways a dishonest employee will seal from their employer happen at the point of sale. An associate may manipulate a transaction to benefit themselves or someone else, for instance entering refunds or voided transactions into the register and pocketing the cash. Other methods of theft include removal of trash with concealed merchandise stashed inside, cash theft, employee error and waste.
S&T Solutions is familiar with the impact of how both employee and customer theft and fraud can have upon retail operation's bottom line. Let us design you a customized program that not only utilizes technology, but will address best policies as well.
The shrinkage that is made up of missing goods from shop lifting and other causes accounts to about $42 Billion dollars a year. The cost of this shrinkage is passed along consumers in the amount of $335 per year per American household according to the global retail theft barometer. The rate at which US employees steal from there employers is nearly the highest in the world, second only to Argentina. Globally, dishonest employees are behind about 28% of inventory losses. In the United States that number is drastically higher at 43% of lost revenue. This translates into a 54% higher impact for US based businesses.
When most retail business owners think of shrinkage, shoplifting usually is the first thing that comes to mind. In reality the impact of employee theft is fifteen times the amount as the average shoplifter. Often overlooked causes include ineffective pre-employment screening, inadequate employee supervision, as well as the ease of sale of the stolen merchandise.
Some of the most common ways a dishonest employee will seal from their employer happen at the point of sale. An associate may manipulate a transaction to benefit themselves or someone else, for instance entering refunds or voided transactions into the register and pocketing the cash. Other methods of theft include removal of trash with concealed merchandise stashed inside, cash theft, employee error and waste.
S&T Solutions is familiar with the impact of how both employee and customer theft and fraud can have upon retail operation's bottom line. Let us design you a customized program that not only utilizes technology, but will address best policies as well.