Retail loss prevention is important as retail sales in the Middle East are projected to grow to nearly $1.05 trillion by 2016. Estimated retail shrinkage in the region is around 1.71%, or $17 billion. There are four main types of retail loss: known loss, unknown loss, loss of cash, and supply chain loss. Internal theft by employees accounts for 39% of inventory shrinkage, while external theft by customers and others accounts for 38%. Common causes of internal theft include employee theft and fraud at point-of-sale. Common causes of external theft include shoplifting and theft during shipping. Reducing retail loss requires strategies to address both internal and external sources of shrinkage.
O documento discute a importância da tese para os estudantes universitários e oferece serviços de escrita de tese. Ele também lista diversos temas relacionados a contabilidade que podem ser usados para teses e monografias.
O documento discute a importância de se evitar linguagem inadequada nos textos escritos. A linguagem inadequada pode criar uma impressão negativa do escritor e diminuir a confiança do leitor. Além disso, pode afastar determinados públicos e levantar questões legais e de credibilidade. O documento recomenda o uso de uma linguagem apropriada e profissional que seja acessível a todos os leitores.
SEG Vocational Education
SHYAMA Educational Group continuously designed and developing job oriented Course, which is continuously upgrading skills in COMPUTER, ACCOUNTING,
REAL ESTATE, FASHION Industry, Physiotherapy , Food Processing, Swing and Cutting, Hospitality Management, etc..
1) O documento discute a importância de trabalhos escritos para estudantes de nível escolar e universitário para avaliar o conhecimento acumulado durante o ano letivo.
2) Os alunos recebem um tópico e metade do ano para pesquisa profunda e conclusões corretas, aplicando os conhecimentos adquiridos.
3) Preparar trabalhos aceitáveis sem experiência é difícil, pois os tópicos exigem abordagens alternativas e poucos alunos conseguem impressionar os professores na primeira tentativa.
O documento discute serviços de escrita de trabalhos acadêmicos como teses, monografias e trabalhos de conclusão de curso. Ele destaca que os especialistas podem concluir esses trabalhos dentro do prazo estabelecido e de acordo com as especificações do cliente, mantendo a qualidade e privacidade do trabalho. Além disso, oferece ajuda na escrita desses trabalhos para estudantes que precisam de apoio.
O documento lista diversos serviços relacionados à elaboração de monografias, trabalhos de conclusão de curso (TCC) e pesquisas em áreas como publicidade, propaganda, marketing, comunicação e direito do consumidor. Ele fornece temas, modelos e exemplos para esses trabalhos acadêmicos.
1) O documento anuncia serviços de monografias profissionais para estudantes, incluindo ensaios, histórias e projetos acadêmicos.
2) Oferece assistência online para tarefas de escrita e pesquisa, prometendo qualidade e ausência de plágio.
3) Explica os benefícios de contratar escritores profissionais para tarefas acadêmicas complexas e demoradas.
O documento discute as normas da Associação Brasileira de Normas Técnicas (ABNT) para a revisão de literatura. A revisão de literatura é uma parte essencial da escrita acadêmica que fornece fontes e prova a confiabilidade da pesquisa. Embora seja um processo demorado, a equipe de especialistas da empresa pode preparar revisões de literatura personalizadas de acordo com as normas escolhidas, garantindo originalidade e entrega no prazo.
O documento discute a importância da tese para os estudantes universitários e oferece serviços de escrita de tese. Ele também lista diversos temas relacionados a contabilidade que podem ser usados para teses e monografias.
O documento discute a importância de se evitar linguagem inadequada nos textos escritos. A linguagem inadequada pode criar uma impressão negativa do escritor e diminuir a confiança do leitor. Além disso, pode afastar determinados públicos e levantar questões legais e de credibilidade. O documento recomenda o uso de uma linguagem apropriada e profissional que seja acessível a todos os leitores.
SEG Vocational Education
SHYAMA Educational Group continuously designed and developing job oriented Course, which is continuously upgrading skills in COMPUTER, ACCOUNTING,
REAL ESTATE, FASHION Industry, Physiotherapy , Food Processing, Swing and Cutting, Hospitality Management, etc..
1) O documento discute a importância de trabalhos escritos para estudantes de nível escolar e universitário para avaliar o conhecimento acumulado durante o ano letivo.
2) Os alunos recebem um tópico e metade do ano para pesquisa profunda e conclusões corretas, aplicando os conhecimentos adquiridos.
3) Preparar trabalhos aceitáveis sem experiência é difícil, pois os tópicos exigem abordagens alternativas e poucos alunos conseguem impressionar os professores na primeira tentativa.
O documento discute serviços de escrita de trabalhos acadêmicos como teses, monografias e trabalhos de conclusão de curso. Ele destaca que os especialistas podem concluir esses trabalhos dentro do prazo estabelecido e de acordo com as especificações do cliente, mantendo a qualidade e privacidade do trabalho. Além disso, oferece ajuda na escrita desses trabalhos para estudantes que precisam de apoio.
O documento lista diversos serviços relacionados à elaboração de monografias, trabalhos de conclusão de curso (TCC) e pesquisas em áreas como publicidade, propaganda, marketing, comunicação e direito do consumidor. Ele fornece temas, modelos e exemplos para esses trabalhos acadêmicos.
1) O documento anuncia serviços de monografias profissionais para estudantes, incluindo ensaios, histórias e projetos acadêmicos.
2) Oferece assistência online para tarefas de escrita e pesquisa, prometendo qualidade e ausência de plágio.
3) Explica os benefícios de contratar escritores profissionais para tarefas acadêmicas complexas e demoradas.
O documento discute as normas da Associação Brasileira de Normas Técnicas (ABNT) para a revisão de literatura. A revisão de literatura é uma parte essencial da escrita acadêmica que fornece fontes e prova a confiabilidade da pesquisa. Embora seja um processo demorado, a equipe de especialistas da empresa pode preparar revisões de literatura personalizadas de acordo com as normas escolhidas, garantindo originalidade e entrega no prazo.
Loss prevention aims to establish policies, procedures, and practices to prevent loss of inventory and money in a retail environment. The three main categories of loss are administrative failures, external theft, and internal theft. Administrative failures include paperwork errors by employees that can account for 15-20% of annual losses. External theft includes shoplifting and robberies. Internal theft, primarily employee theft, is often the largest contributor to loss. Loss prevention strategies include careful hiring, inventory control, developing internal theft policies, and minimizing employee temptation through positive work environments and perks.
FSCT 8621 Project Final Format__KeishaPadalec A00872963Keisha Padalec
This document reviews loss prevention strategies at Company X. It discusses how Company X uses security tags, inventory tracking, and customer service to deter theft. While Company X's annual shrink rate is only 0.4%, the document aims to determine if high-value assets are truly secure given the store's proximity to transit. Effective training and coordination between employees is important for loss prevention, as is monitoring customers near high-risk items. Overall the review examines Company X's loss prevention approaches and whether more can be done to safeguard assets.
Insights from 2,000 UK consumers explain - How retail stores could safely reo...imogenkw
A survey of 2,000 British consumers suggests how stores can safely stay open for business as the Coronavirus lockdown eases. Three key insights demonstrate how Covid-19 will change retail for now and in the future.
Report by retail technology company Qudini: Provider of appointment booking and virtual queuing software.
(Apologies for the low resolution, the file is high res until uploaded. Feel free to get in touch for the high res file: info@qudini.com)
Every year, retailers around the world loose a big chunk of their inventory and profits to internal as well external theft. Organised Retail Crime is a major Issue in the Retail Industry that’s continuously getting neglected. According to The National Retail Federation’s 2009 Organized Retail Crime Survey, 92 percent of retail companies were victims of organized crime activity during the past year, an increase of 8 percent from 2008. The percentage of loss of products between manufacture and point of sale is referred to as shrinkage. In 2008 Global Retail Barometer surveyed 36 countries, the shrinkage calculated approximates US$ 104,529 million, constituting a share of 1.34% of their retail sales.
The document discusses future trends in retail security and loss prevention. It notes that theft accounts for 72% of retail shrinkage, with employee theft being the largest source. To reduce losses, the document recommends investing in security measures like CCTV, electronic tagging, and staff training. It also advocates for developing loss prevention partnerships between retailers and law enforcement to share intelligence on crime trends. The overall message is that loss prevention requires a strategic, multifaceted approach that addresses theft deterrence, process improvements, and organizational compliance.
Disentangling disintermediation - Charles Armitage, FlorencePaybase
Charles Armitage discusses disintermediation and how marketplaces can manage the risk. Disintermediation refers to transactions occurring off the platform between buyers and sellers. It presents risks like lost revenue and data. While disintermediation is not currently a major problem for Florence given its regulated industry and vetting processes, managing it is important for growth. Strategies include providing value-added services, incentives for loyal users, and governance rules around off-platform transactions. The key is continually enhancing user value to make transacting on the platform more convenient.
Insights from 2,000 American consumers explain - How retail stores could safe...imogenkw
A survey of 2,000 American consumers suggests how retail stores can safely reopen for business as the Coronavirus lockdown eases. Three key insights demonstrate how Covid-19 will change retail for now and in the future.
Report by retail technology Qudini: Provider of appointment booking and virtual queuing software.
(Apologies for the low resolution, the file is high res until uploaded. Feel free to get in touch for the high res file: info@qudini.com)
Revenue Protection Services is a commercial investigation company that specializes in investigating employee fraud and theft. They conduct covert investigations, audits, and surveillance for hospitality, retail, and leisure businesses. Their investigations have led to thousands of employee dismissals and the recovery of millions of pounds in stolen revenue for their clients. They offer services to identify various types of fraud such as cash theft, stock theft, and payroll fraud through covert video surveillance and test purchasing.
Infographic: Sales Channel Incentive Fraud Trends For 2014360insights
This document discusses trends in sales channel incentives and fraud prevention. It provides statistics from 360incentives on over 16 million claims processed since 2009. On average, 1-9% of promotional spending is deemed fraudulent or non-compliant. Emerging fraud threats include account takeover, altered invoices, and fictitious consumers. The document recommends ways to prevent fraud such as tracking serial numbers, requiring invoices, and monitoring for anomalies. It argues against relying solely on random audits for fraud detection.
Infographics - 2,000 US Consumer survey shows that consumers are avoiding sto...imogenkw
Infographics from a 2,000 US consumer survey run across America by retail technology company Qudini shows that consumers are avoiding stores as much as possible as a result of the Coronavirus and so social distancing and advanced customer management could be essential to building customer confidence to visit when store reopen.
Report by retail technology company Qudini: Provider of appointment booking and virtual queuing software. (www.qudini.com)
(Apologies for the low resolution, the file is high res until uploaded. Feel free to get in touch for the high res file: info@qudini.com)
Most companies have ethics and compliance policies in place and those policies usually include training for employees. That training typically includes material about policies prohibiting discrimination and harassment, bribery and excessive gift-giving. But it usually does not teach employees how to recognize signs of fraud and how to report them.
Employee fraud awareness training is one of the most important ways your company can protect itself from fraud which, according to the Association of Certified Fraud Examiners, costs the average company five per cent of its revenues every year.
Presentation by Louise Camilleri of Lodge Service, provider of security and compliance services to charity retail for 25 years, A CRA member for 10 years. Services include:-
Test Purchasing
Manned Guarding
Penetration Testing
Mystery Shopping
Screening & Vetting
Reference checks
Industry recruitment
Alarm Monitoring
Access Control
24 hour Intelligence Hub
Vehicle tracking
Compliance audits
Stock Shrinkage at retail store and loss prevention methodsPrasanth Pambadi
Loss prevention refers to processes that reduce inventory losses from theft and errors. The main causes of shrinkage are employee theft (42.9%), shoplifting (37.4%), administrative errors (10.8%) and vendor fraud (8.9%). Shoplifting involves stealing merchandise from a retail store, while kleptomania is a disorder where people feel compelled to steal useless items. Common loss prevention measures include training staff, using surveillance cameras, security checks, and defining entry and exit processes to reduce shoplifting and employee theft.
We had another great webinar presented by Dave Hammarberg (Director of IT and Consulting Senior Manager) and Jim Shellenberger (Senior Manager) with McKonly & Asbury! Thank you to everyone that attended and received CPE credit.
We discussed what skimming is and went into a discussion of several examples and how to detect and prevent your organization from becoming a victim of skimming.
Check out our Upcoming Events page for news and updates on our future seminars and webinars.
For more information on this topic or to submit a question for Dave or Jim, use our contact page at www.macpas.com/contact.
www.macpas.com/webinar-recap-skimming-what-the-auditors-miss
The internal audit department at Lowes-Manhattan Menswear adopted a proactive approach to reduce shrinkage through prevention. This led to a 61% reduction in shrinkage since 1988. The internal audit department conducts regular store audits, investigates fraud and theft, educates staff on prevention, and is involved in policies, procedures, and other loss prevention initiatives. By taking an expanded role in loss prevention, the internal audit department helped lower shrinkage and position itself as an important part of the management team.
An unfortunate reality in today’s retail world is the growing increase in fraud. In the rapidly changing wireless industry, new phones, new commission plans, new discounts and bundles, the potential for fraud in a wireless store is huge. Fraud, of course, isn’t just lost or stolen items – we’ll also look at things like commission fraud, for example. In this session, we’ll examine industry stats, RQ4 client stats and identify things we’ve seen – and how you can prevent and monitor these things. Every lost or stolen item counts, and knowing what to look for operationally will affect your bottom line.
2016 - Fraud Detection & Prevention with Internal Controls (Updated for 2016 ...Ron Steinkamp
The document discusses occupational fraud, including definitions, categories, schemes, and findings from a 2016 ACFE fraud study. Some key points:
- Occupational fraud involves misusing an organization's resources for personal gain through asset misappropriation, corruption, or financial statement fraud.
- The ACFE study found the typical fraud lasted 18 months and cost organizations $150,000, with over 23% of cases over $1 million.
- Asset misappropriation, like expense reimbursement scams, were most common but lowest cost, while financial statement fraud was less common but highest cost.
- Most frauds are committed by accounting, operations, sales, or executive staff and involve schemes like billing for
The document discusses occupational fraud, including definitions, categories, schemes, and findings from a 2016 ACFE fraud study. It defines occupational fraud as using one's occupation for personal enrichment through deliberate misuse of an organization's resources. There are three categories: asset misappropriation, corruption, and financial statement fraud. The study found that the typical fraud lasted 18 months and cost organizations $150,000, with over 23% of cases resulting in losses over $1 million. Asset misappropriation schemes were most common, while financial statement fraud caused the highest losses.
The document discusses initiatives undertaken by Flipkart to improve the returns process for sellers. It highlights issues faced related to logistics, fraud, visibility, and communication. It then describes Flipkart's initiatives to address these issues, including improving return tracking and visibility on the seller portal, implementing thermal labeling to prevent lost returns, and deploying processes to check high value returns and prevent theft. The document emphasizes that returns are an important part of e-commerce and building trust with customers.
Loss prevention aims to establish policies, procedures, and practices to prevent loss of inventory and money in a retail environment. The three main categories of loss are administrative failures, external theft, and internal theft. Administrative failures include paperwork errors by employees that can account for 15-20% of annual losses. External theft includes shoplifting and robberies. Internal theft, primarily employee theft, is often the largest contributor to loss. Loss prevention strategies include careful hiring, inventory control, developing internal theft policies, and minimizing employee temptation through positive work environments and perks.
FSCT 8621 Project Final Format__KeishaPadalec A00872963Keisha Padalec
This document reviews loss prevention strategies at Company X. It discusses how Company X uses security tags, inventory tracking, and customer service to deter theft. While Company X's annual shrink rate is only 0.4%, the document aims to determine if high-value assets are truly secure given the store's proximity to transit. Effective training and coordination between employees is important for loss prevention, as is monitoring customers near high-risk items. Overall the review examines Company X's loss prevention approaches and whether more can be done to safeguard assets.
Insights from 2,000 UK consumers explain - How retail stores could safely reo...imogenkw
A survey of 2,000 British consumers suggests how stores can safely stay open for business as the Coronavirus lockdown eases. Three key insights demonstrate how Covid-19 will change retail for now and in the future.
Report by retail technology company Qudini: Provider of appointment booking and virtual queuing software.
(Apologies for the low resolution, the file is high res until uploaded. Feel free to get in touch for the high res file: info@qudini.com)
Every year, retailers around the world loose a big chunk of their inventory and profits to internal as well external theft. Organised Retail Crime is a major Issue in the Retail Industry that’s continuously getting neglected. According to The National Retail Federation’s 2009 Organized Retail Crime Survey, 92 percent of retail companies were victims of organized crime activity during the past year, an increase of 8 percent from 2008. The percentage of loss of products between manufacture and point of sale is referred to as shrinkage. In 2008 Global Retail Barometer surveyed 36 countries, the shrinkage calculated approximates US$ 104,529 million, constituting a share of 1.34% of their retail sales.
The document discusses future trends in retail security and loss prevention. It notes that theft accounts for 72% of retail shrinkage, with employee theft being the largest source. To reduce losses, the document recommends investing in security measures like CCTV, electronic tagging, and staff training. It also advocates for developing loss prevention partnerships between retailers and law enforcement to share intelligence on crime trends. The overall message is that loss prevention requires a strategic, multifaceted approach that addresses theft deterrence, process improvements, and organizational compliance.
Disentangling disintermediation - Charles Armitage, FlorencePaybase
Charles Armitage discusses disintermediation and how marketplaces can manage the risk. Disintermediation refers to transactions occurring off the platform between buyers and sellers. It presents risks like lost revenue and data. While disintermediation is not currently a major problem for Florence given its regulated industry and vetting processes, managing it is important for growth. Strategies include providing value-added services, incentives for loyal users, and governance rules around off-platform transactions. The key is continually enhancing user value to make transacting on the platform more convenient.
Insights from 2,000 American consumers explain - How retail stores could safe...imogenkw
A survey of 2,000 American consumers suggests how retail stores can safely reopen for business as the Coronavirus lockdown eases. Three key insights demonstrate how Covid-19 will change retail for now and in the future.
Report by retail technology Qudini: Provider of appointment booking and virtual queuing software.
(Apologies for the low resolution, the file is high res until uploaded. Feel free to get in touch for the high res file: info@qudini.com)
Revenue Protection Services is a commercial investigation company that specializes in investigating employee fraud and theft. They conduct covert investigations, audits, and surveillance for hospitality, retail, and leisure businesses. Their investigations have led to thousands of employee dismissals and the recovery of millions of pounds in stolen revenue for their clients. They offer services to identify various types of fraud such as cash theft, stock theft, and payroll fraud through covert video surveillance and test purchasing.
Infographic: Sales Channel Incentive Fraud Trends For 2014360insights
This document discusses trends in sales channel incentives and fraud prevention. It provides statistics from 360incentives on over 16 million claims processed since 2009. On average, 1-9% of promotional spending is deemed fraudulent or non-compliant. Emerging fraud threats include account takeover, altered invoices, and fictitious consumers. The document recommends ways to prevent fraud such as tracking serial numbers, requiring invoices, and monitoring for anomalies. It argues against relying solely on random audits for fraud detection.
Infographics - 2,000 US Consumer survey shows that consumers are avoiding sto...imogenkw
Infographics from a 2,000 US consumer survey run across America by retail technology company Qudini shows that consumers are avoiding stores as much as possible as a result of the Coronavirus and so social distancing and advanced customer management could be essential to building customer confidence to visit when store reopen.
Report by retail technology company Qudini: Provider of appointment booking and virtual queuing software. (www.qudini.com)
(Apologies for the low resolution, the file is high res until uploaded. Feel free to get in touch for the high res file: info@qudini.com)
Most companies have ethics and compliance policies in place and those policies usually include training for employees. That training typically includes material about policies prohibiting discrimination and harassment, bribery and excessive gift-giving. But it usually does not teach employees how to recognize signs of fraud and how to report them.
Employee fraud awareness training is one of the most important ways your company can protect itself from fraud which, according to the Association of Certified Fraud Examiners, costs the average company five per cent of its revenues every year.
Presentation by Louise Camilleri of Lodge Service, provider of security and compliance services to charity retail for 25 years, A CRA member for 10 years. Services include:-
Test Purchasing
Manned Guarding
Penetration Testing
Mystery Shopping
Screening & Vetting
Reference checks
Industry recruitment
Alarm Monitoring
Access Control
24 hour Intelligence Hub
Vehicle tracking
Compliance audits
Stock Shrinkage at retail store and loss prevention methodsPrasanth Pambadi
Loss prevention refers to processes that reduce inventory losses from theft and errors. The main causes of shrinkage are employee theft (42.9%), shoplifting (37.4%), administrative errors (10.8%) and vendor fraud (8.9%). Shoplifting involves stealing merchandise from a retail store, while kleptomania is a disorder where people feel compelled to steal useless items. Common loss prevention measures include training staff, using surveillance cameras, security checks, and defining entry and exit processes to reduce shoplifting and employee theft.
We had another great webinar presented by Dave Hammarberg (Director of IT and Consulting Senior Manager) and Jim Shellenberger (Senior Manager) with McKonly & Asbury! Thank you to everyone that attended and received CPE credit.
We discussed what skimming is and went into a discussion of several examples and how to detect and prevent your organization from becoming a victim of skimming.
Check out our Upcoming Events page for news and updates on our future seminars and webinars.
For more information on this topic or to submit a question for Dave or Jim, use our contact page at www.macpas.com/contact.
www.macpas.com/webinar-recap-skimming-what-the-auditors-miss
The internal audit department at Lowes-Manhattan Menswear adopted a proactive approach to reduce shrinkage through prevention. This led to a 61% reduction in shrinkage since 1988. The internal audit department conducts regular store audits, investigates fraud and theft, educates staff on prevention, and is involved in policies, procedures, and other loss prevention initiatives. By taking an expanded role in loss prevention, the internal audit department helped lower shrinkage and position itself as an important part of the management team.
An unfortunate reality in today’s retail world is the growing increase in fraud. In the rapidly changing wireless industry, new phones, new commission plans, new discounts and bundles, the potential for fraud in a wireless store is huge. Fraud, of course, isn’t just lost or stolen items – we’ll also look at things like commission fraud, for example. In this session, we’ll examine industry stats, RQ4 client stats and identify things we’ve seen – and how you can prevent and monitor these things. Every lost or stolen item counts, and knowing what to look for operationally will affect your bottom line.
2016 - Fraud Detection & Prevention with Internal Controls (Updated for 2016 ...Ron Steinkamp
The document discusses occupational fraud, including definitions, categories, schemes, and findings from a 2016 ACFE fraud study. Some key points:
- Occupational fraud involves misusing an organization's resources for personal gain through asset misappropriation, corruption, or financial statement fraud.
- The ACFE study found the typical fraud lasted 18 months and cost organizations $150,000, with over 23% of cases over $1 million.
- Asset misappropriation, like expense reimbursement scams, were most common but lowest cost, while financial statement fraud was less common but highest cost.
- Most frauds are committed by accounting, operations, sales, or executive staff and involve schemes like billing for
The document discusses occupational fraud, including definitions, categories, schemes, and findings from a 2016 ACFE fraud study. It defines occupational fraud as using one's occupation for personal enrichment through deliberate misuse of an organization's resources. There are three categories: asset misappropriation, corruption, and financial statement fraud. The study found that the typical fraud lasted 18 months and cost organizations $150,000, with over 23% of cases resulting in losses over $1 million. Asset misappropriation schemes were most common, while financial statement fraud caused the highest losses.
The document discusses initiatives undertaken by Flipkart to improve the returns process for sellers. It highlights issues faced related to logistics, fraud, visibility, and communication. It then describes Flipkart's initiatives to address these issues, including improving return tracking and visibility on the seller portal, implementing thermal labeling to prevent lost returns, and deploying processes to check high value returns and prevent theft. The document emphasizes that returns are an important part of e-commerce and building trust with customers.
1. Why Loss Prevention
• According to figures released by Euromonitor
International, the overall retail sector – both online
and in-store – in the Middle East is projected to grow
from approximately $996 billion in 2015 to nearly
$1.05 trillion in 2016.
• Although it is very difficult to get correct shrinkage
data in this region, it is estimated to be around
1.71% i.e $ 17 billions.
This directly goes from your profit
3. LOSS PREVENTION= INCREASE PROFITS
Retail Loss has direct relationship with the profitability of an organization.
Quite often Retail Loss is associated with Shrinkage and with measures to
arrest shrinkage. And, to me, this is erroneous idea to start with. The
organization must recognize that the Retail loss does impact profitability
and the customer satisfaction. A merchandise not reaching customer is in
fact loss of revenue, profitability and the loss of customers.
4. What do we understand by retail loss?
What should we take into account?
According to loss prevention studies, there are four types of loss that we should
account for:
• Known loss is loss which can be identified, quantified and explained at the
time the loss occurs. Examples include: damage, distress, out of date,
customer returns, markdowns, etc.
• Unknown loss is loss that cannot be specifically identified. Examples:
Employee theft, shoplifting, etc.
• Loss of cash is when a company makes less than they plan on making due to
internal or external factors.
• Supply chain loss is when there is a disruption in the distribution of one of the
supplies on the supply chain, making the company lose those profits.
5. Types of Retail Loss
Broadly speaking Retail loss could be divided into:
Internal: Internal theft is referred to as employee
theft. It happens within the company. According to
2014-2015 Global Retail Theft Barometer Study,
employee theft was estimated to be responsible for
39% of store inventory shrinkage.
External: External theft is the stealing of merchandise,
cash, goods, or fraud resulting in loss by shoplifters.
According to 2014-2015 Global Retail Theft Barometer
Study, external theft accounts for 38% of inventory
shrinkage.
6. Share of Retail loss/Shrinkage
Retail Loss on Global Level
According to 2014-2015 Global Retail
Theft Barometer Study:
• US$ 123.4 billion is the total value of
the Retail Shrinkage.
• Average cost of Retail Crime per
person stands at $335.00
39%
38%
16%
7%
Employees Customers Acctg.& Admin. Suppliers
7. Internal Theft: Employees theft
Employee Theft: Much of the employees theft happens at the Cash counter/POS counter.
Employees reported to have stolen cash and goods from their work place. Some of the
common loss making examples are:
1) Most common being selling to friends and relative at discounted price.
2) Or entering zero amount transactions else punching lower price than /switching bar
codes.
3) Out right theft: store back room and the warehouse are two prone areas where
most outright theft happens.
4) Lost en-route: merchandise being diverted/pilferage en-route from warehouse to
shops.
Then there are “return fraud”:
5)False return: issuing return to friends /relatives without actually making any return.
6) Returning stolen merchandise that has never been purchased.
7) No receipt return: for a legitimate customer and later issuing the receipt to issue a
second return.
8) Ghost employees, non existed working hours: claim salary /wages for employees that
never existed or claiming hours more than worked. This happens wherever contracted staffs
are employed.
8. External Theft: Customers and service providers
External theft: External theft is the stealing of merchandise, cash, goods, or
fraud resulting in loss by shoplifters. According to the most recent survey done
by National Retail Security, external theft accounts for 30% of inventory
shrinkage.
1) Customers stealing merchandise mostly from the fitting rooms
2) Switching bar codes
3) Retuning merchandise without receipt
4) Discounted purchase “return” at full price
5) Shop Lifting
6) Pilferage while in transit
7) Loss the count of parcel in collusion with staff
8) Real Accident /damage in transit
9) Delayed shipment/arrival of merchandise
10) Short/ Excess/Damage merchandise
9. Mapping of all variables of potential loss
Supply chain mapping for the flow of goods/service, fund and information
10. Supply Chain disruption/suboptimal performance
1) Replenishment fall short of demand
2) Delayed merchandise
3) Late season/product launch
4) Inconsistent Forecasting
5) Quality issues
6) Not conforming to markets’ statutory
requirement: conformity certificates
7) Loss in transit
11. Most Stolen merchandise
Products easy to conceal, wide public appeal and
which could be easily resold:
• Footwear
• Batteries
• Mobile and Mobile accessories
• Razor
• Foods/drink items
12. Identify Common Shoplifting Methods and Traits
Shoplifters are often never alone. They usually try to have
someone else there in order to distract the employees. The
shoppers have to be able to hide the merchandise and here is
how they usually hide it.
• Clothing
• Handbags
• Strollers
• Umbrellas
• Purchased merchandise
13. The End of Retail Loss
Picture from: Loss Prevention Media
14. How to fix Internal Shrinkage/Theft
EAS
Fixtures
Manual Screening
Employees Training
Optimize Supply Chain practices
Data analytics and benchmarking
Background check of employees before hiring
15. External Shrinkage or Theft
Insurance
Source Tagging
Secure the premise
Secured Fitting/Trial Room
Disseminate information of measure taken
by retailers for the safety and security
16. The future of Loss Prevention
E-commerce theft
and fraud
Seven Types:
• Identity theft
• Friendly fraud
• Clean fraud
• Affiliate fraud
• Triangulation
fraud
• Merchant
fraud
• International
fraud
Identity theft
Counterfeit and
Grey market
• Also a type of e-
commerce theft
and fraud
• Stolen identity in
order to commit
fraud
• Types of Identity
Theft:
– Child ID theft
– Tax ID theft
– Medical ID theft
– Senior ID theft
– Social ID theft
• Legal but unintended sale
by the manufacturer
• Sale of imported goods
which would otherwise
be either more expensive
or unavailable in the
country to which they are
being imported.
• Example: Apple products
which are not sold in
South Korea, being sold
to those in South Korea
with manufacturer
knowledge