Most retailers have a loss prevention team in place to deal with stock loss. Shrinkage - also called Stockloss - is the amount of stock that 'disappears' during the trading year from a retailer's inventory.
If a retailer books in deliveries from suppliers and supply chain correctly at the Goods Inwards area or Back Door, then keeps the goods securely on the shelf preventing them being stolen, and sells stock correctly through the till - then surely all stock inventory figures should be correct?
Police forces around the UK routinely arrest and process hundreds, if not thousands of shoplifters every day. At the same time, other stock-loss or shrinkage is caused by error and wastage.
Who pays for Retail Stockloss caused by crime and poor process ? - The truth is that this cost affects shareholder dividends, customer prices, and employee salary packages.
Luckily many UK Retailers have realised that if they express their Shrinkage or Stockloss as a percentage of sales, this may seem like a small percentage. Express this number as a percentage of net profit, and suddenly you have everyone's attention, from shareholders, through the board of directors, right down to branch level.
Over 100,000 people are employed in various security, asset protection, profit protection and loss prevention roles, many in a retail environment. This website aims to provide information to all engaged in stockloss reduction, whether you are a Director of Loss Prevention, Regional LP Manager, Loss Prevention Investigator, Security Officer or a retail colleague interested in reducing stockloss, preventing crime, improving customer security and driving shareholder value. The role of the Store Detective seems to be making a big comeback as a result of rising cime and new sentencing powers.
November 2013: Shoplifter Offenders Jailed In the past couple of weeks up and down the country courts have handed custodial sentences in shoplifting cases. See why shop theft and not a victimless crime, and how the courts can be tough.
October 2013: Handbag Shoplifter Sent to Prison A 48 year old Swindon mother of two made national TV, Radio and Newspaper headlines after she was sentenced to a prison term for stealing a large amount of handbags which she sold on online auction sites. Although she stole from a a lot of different reatilers, it was alert staff at House of Fraser who finally brought the crime spree to an end.
October 2013: Self Checkout Prosecution - The Great Onion Fraud A former international hockey player used a 'loose onion' scam 20 times in three months to steal from Sainsbury’s through their self checkout tills, but was caught when a security guard spotted that everything was scanned as loose onions, which were not sold at that particular store.......
October 2013: Morrisons Supervisor Jailed The assistant night manager of a Morrisons store stole large amounts of stock which he intended to sell, but was caught when an anonymous tip-off resulted in the Store Manager watching him load his car on CCTV......
June 2013: Customer fraud costs retailers £3.4bn a year A study conludes that 1 in 20 adults admitted to buying clothing from a shop, then keeping the tags on to wear to an occasion, then taking it back to a shop for a refund or exchange. Similarly, almost the same amount at 2m admitted to deliberately damaging an item so that they could get a refund or exchange.