Shrink: Small Hits at POS, Big Hits on Loading Dock

When retailers were asked about the areas of the enterprise that provide the best opportunities to combat shrink, respondents to a survey we conducted pointed decidedly toward employee areas: namely the checkout stand.

Closely behind are the stock room and back room, while the third greatest opportunity resides in receiving areas and loading docks.

When viewed by performance and revenue, top retailers show an added measure of faith that they have in their workforce. These winners and large retailers maintain more of a concerned focus toward “outside” crime – ORC in particular. Winning retailers report vigilance in efforts to secure vulnerable areas. Through monitoring activity and the use of technology and auditing procedures, these retailers are constantly updating and enhancing security measures to deter theft. Thirty-two percent of Winners (versus 17% of laggards) look to the distribution center as a very important area to reduce shrink, while 75% of mega retailers (versus 50% of small retailers) see loading docks and receiving areas as hot spots. Both of these locales are prime targets for organized retail crime rings looking to complete large-scale heists.

"Loss Prevention 2010: Retailers Battling Shrink in Tough Times" contains analysis of the business drivers, opportunities, and organizational constraints surrounding Loss Prevention initiatives, as well as recommendations for creating successful LP capabilities. The report is part of RSR Research's ongoing efforts to provide market intelligence on retail technology trends, and can be downloaded.