Retail loss costs us all. Through the increased cost of loss passed on to consumers, the productivity impact of identifying, reporting and restocking items which are no longer on show (supply chain and store), the inherent danger of confronting potential theft offenders through to the cost of implementing protective and proactive measures in reducing loss.
It is estimated that in Australia alone, theft costs the retail sector over $7.5 billion annually. In addition to just theft, retail fraud is estimated to cost over $100m annually. This works out to be on average approximately $450 out of every household pocket. That money would be much better off in your own pocket.
If we look at the main drivers of this loss, studies have estimated that shoplifting accounts for 38%, your own employee theft accounts for 39% and process/administration loss accounts for 16%. Due to this, it is simply not enough to develop a strategy targeting one of these primary drivers.
In order to effectively protect your business against loss, it is recommended that a thorough business review be conducted in order to identify gaps in your internal processes which are contributing to your loss and quick measures you can implement that are high impact. It is vitally important that in addition to this, your business leaders are proactively talking about loss and support your loss strategy to deliver benefit to your business. In today’s toughening economic climate, it can be easier to save money than it is to make more!
Join us over the next few weeks as we dive into the primary loss drivers and discuss how you can use a multi-faceted approach to reducing loss including engagement, training, external resources and analytics.
In the meantime, if you think you could benefit from a confidential discussion regarding loss prevention solutions and how Southern Cross Group can partner with your business, please don’t hesitate to reach out.
About the Author- Paul Fleet, Loss Prevention Specialist
Paul has a diverse background across both private and public sectors focusing on internal and external customer engagement and lean management practices, strategically driving positive business change whilst managing risk and asset protection functions. Paul brings experience driving engagement and solutions both as a customer and as a service partner with respect to security, loss, strategy, technology and on the ground people power, creating a data and insight led sustainable business approach tailored to specific customer needs.