Prevent Shoplifting – Cost Cutting Strategy

Because of the present business economy, the strategy of most retail storeowners and managers has been to cut costs in order to survive the downturn and position for a better climate.  Overall, the results have for the most part been successful so far although there has been a decrease in payroll resulting in fewer personnel to cover the sales floor and man the registers.  The decrease in man-hours available has a negative effect on the effort to prevent shoplifting – resulting in an increase in costs.

The costs increase is in cost of goods sold. Even if the price paid to the suppliers remains the same, the cost of goods sold increases because the owner has to replace the pilfered merchandise with new goods to have merchandise on hand to sell.

Many retailers look at the problem of shoplifting as a personal one, which it is.  The shoplifter is stealing merchandise that the retailer bought with money that he earned.  The alternatives that the retailer faces are increasing the prices charged to his customers or finding ways to control or stop shoplifting.  Neither of these alternatives is optimal.

Shoppers are driven by loyalty, but even more so by price.  A price increase to cover inventory loss is seen by customers only as a price increase, and in the current economic environment price is on consumers’ minds.  This is the less desirable alternative and doesn’t really address the core issue of shoplifting.

An effective way to prevent shoplifting is to make the act of shoplifting less likely to succeed and drive the shoplifter to an easier target.

No matter what the motivation of the shoplifter – wanting something for nothing, peer pressure, impulse, or thrill – a retail anti theft device such as a Checkpoint Security System will serve as a deterrent.  The presence of a Checkpoint System at the entrance of a store or boutique is enough to stop many shoplifters.  Why risk stealing from a protected store when there is an easier victim down the street?

The retailer or manager makes the decision which merchandise to protect based on theft history, price point, or any combination of factors, but can depend on the Checkpoint Security System to sound an alarm when protected merchandise leaves the premises without having been purchased.

There is virtually no type of merchandise that can’t be protected with one of the many Checkpoint tags or Checkpoint labels that are available.

A Checkpoint Security System will prevent shoplifting and control costs related to theft so that the cost of the system is quickly recovered and will continue to save the retailer money as well as reduce aggravation.

Call LPSI at 866-914-2567 or click here: Stop Shoplifting for information on controlling costs related to theft.  Visit our Online Retail Loss Prevention Store for even more ideas.