Magazines Archives - 2008 August

Loss Prevention - Retailers share notes on how to outsmart cheats
Story 4 - Focus

As operators of cash-based businesses, retailers are hard-hit by incidents of shoplifting and in-house
theft. Malaysian retailers tell Eu Hooi Khaw their secret to fighting shrinkage and preventing
the unnecessary erosion of bottom lines.

Employee theft, shoplifting and paperwork errors are recognised causes of shrinkage in the
Malaysian retail industry. Although there is more publicity about shoplifting than theft by staff, the latter accounts for at least 50% of inventory loss, say security experts. The problem may be partly attributed to unskilled and foreign labour working for minimal wages in the industry.

To reduce shrinkage, retailers usually install CCTV (closed-circuit television) cameras in strategic locations, use sensor tags, hire mystery shoppers, conduct regular stock checks and implement
a flow-chart system to monitor staff movement in and out of the store.

At the human-resource level, staff members are reminded from the onset to be honest in their work, and directly warned against pilferage and fraud.

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