As the economic downturn bites, retailers should heed the BRC's warning that retail crime could surge. It's known that when a country is in recession, crime increases. As finances are stretched, the risk to retailers increases from both shoplifters and employees.
When it comes to loss and shrinkage, the point of sale is highly significant. All sales activity - and therefore the value of the business - goes through that point. With multi-channel, multi-format retailing, it is here the risk of loss is at its greatest. Dangers range from under-ringing - through barcode substitution, discounting and failing to scan - to refunding and cancelling.
The key to reducing loss lies in greater visibility of PoS activity and increased management focus. This is where analytical technology can help. By analysing and developing a profile of transactions and cashiers, trends and exceptional behaviour can be identified. By recognising fraud risk early, steps can be taken to mitigate the potential for loss. Such action can also help improve customer experience, increase throughput and boost efficiency.
Working together with transactional profiling, CCTV can identify certain trends in behaviour and help direct in-store security resources to possible sources of shoplifting by, for example, monitoring dwell time near luxury items.
Retailers also need to use this technology as a deterrent. Store and area managers are the key players in reducing staff-related shrinkage - helped and focused by central systems and audit experts. Armed with the right data, they can have constructive conversations with staff to correct bad practice, deter offenders at an early stage or start disciplinary procedures.
This technology is already available, though only a small proportion of retailers are using dedicated loss-prevention tools. By joining technologies together, retailers can gain greater knowledge of what is happening on the shop floor. And, through using smarter technologies, a return of up to 30% of a business's overall shrinkage can be achieved.
The technology to combat fraud is there - let's use it! n
Richard Goodall is group sales and marketing director of the PCMS Group
When it comes to loss and shrinkage, the point of sale is highly significant. All sales activity - and therefore the value of the business - goes through that point. With multi-channel, multi-format retailing, it is here the risk of loss is at its greatest. Dangers range from under-ringing - through barcode substitution, discounting and failing to scan - to refunding and cancelling.
The key to reducing loss lies in greater visibility of PoS activity and increased management focus. This is where analytical technology can help. By analysing and developing a profile of transactions and cashiers, trends and exceptional behaviour can be identified. By recognising fraud risk early, steps can be taken to mitigate the potential for loss. Such action can also help improve customer experience, increase throughput and boost efficiency.
Working together with transactional profiling, CCTV can identify certain trends in behaviour and help direct in-store security resources to possible sources of shoplifting by, for example, monitoring dwell time near luxury items.
Retailers also need to use this technology as a deterrent. Store and area managers are the key players in reducing staff-related shrinkage - helped and focused by central systems and audit experts. Armed with the right data, they can have constructive conversations with staff to correct bad practice, deter offenders at an early stage or start disciplinary procedures.
This technology is already available, though only a small proportion of retailers are using dedicated loss-prevention tools. By joining technologies together, retailers can gain greater knowledge of what is happening on the shop floor. And, through using smarter technologies, a return of up to 30% of a business's overall shrinkage can be achieved.
The technology to combat fraud is there - let's use it! n
Richard Goodall is group sales and marketing director of the PCMS Group
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