Magazines Archives - 2008 August

Loss Prevention - How much vigilance is enough for stores?
Story 3 - Focus

In Singapore where shopping is considered a national sport, retail firms are struggling with a
shrinkage growth that is among the highest in the region. Is enough being done to lessen the pain?
Jolene Klassen gives a status report.

Loss prevention remains an ever pressing challenge for retailers in Singapore. Yet, as more operators are aware of the consequences of not securing their inventory, many still appear hesitant to implement precautionary measures in their stores.

Of the five Asia-Pacific markets surveyed by the UK-based Centre of Retail Research in 2007 for its Global Retail Theft Barometer report, the republic saw the highest increase in shrinkage last year, with an alarming 5% climb to 1.25% of total sales. While the proportion of loss was below the global average of 1.36%, Singapore was one of only two territories in the region that posted a growth in shrinkage as a percentage of sales.

It seems retailers which have fallen victim to unreliable security providers, and encountered losses through bad investments in anti-loss systems, are steering clear of the slew of companies peddling their ware to stores.

The current sluggish world economy is no help either. A recent survey, entitled Loss Prevention Budget Trends, conducted by US-based manufacturer of security solutions Checkpoint Systems Inc, indicated that 77% of retailers cut back on loss-prevention spending in hard times.

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