Unquestionably the standard measurement in the effective loss prevention program for almost any store may be the inventory shrink percentage. Whether it is calculated at cost or retail, the shrink percentage will highlight for people who’ve a effective program otherwise. However, let’s say you looked more carefully within the shrink results by means of dollars lost – Is it possible to rate your program’s success differently?

Let us utilize one particualr single store location. Right here are a handful of figures to munch on.

• Niche Store of women’s apparel

• 5,000 sq . feet . location within the suburban outlet center

• Annual sales of $3 million U.S. dollars

• Last inventory shrink volume of 1.15% (retail)

• Average cost tag is $30 per item

A yearly shrink volume of 1.15% would certainly be described as a easier to excellent increase the risk for organization. However, if i used to be to check out dollars and units lost when using the above information, we’d uncover this location lost $34,500 in inventory and roughly 1,150 pieces while using average cost per item. Going so much much deeper towards the details, around, this location averaged a loss of revenue of profits of 95 products monthly because of thievery or error! According to individuals calculations, what for anyone who’s wondering regarding this location additionally for their loss prevention program now?

First, could be a store losing this many products acceptable or even possible in your atmosphere without there like a contributing factor to concern? Whenever your retail locations be losing that lots of products monthly or even One Dollar inadequate much profit annually?

Next, check out all of your locations differently to discover how stores with substantial inventory dollars or units lost compare. Measure stores which have similar size, annual sales dollars, merchandise mixture (if different) and store formats.

Lastly, try and experience what it is achievable to get rid of that amount of products. Generally, according to the kind of item, even shoplifting that quantity may be difficult. Take a look at the way a store is working in relation to compliance, hiring practices, associates awareness, internal thievery prevention additionally to handling shipments. Don’t assume all loss is really because thievery, however, many is the result of failure by associates.

This being just a good example, a lot of us understand you will find variables in play. The next time you are taking inventory and have calculated your stores’ shrink percentages, produce a spreadsheet and evaluate your store locations according to shrink percentage, sales, total shrink dollars and total units lost. Sort your spreadsheet when using the different fields and i’m sure that you’ll see some stores that’ll matter using shrink dollars or total units lost by having an excellent shrink percentage. Make your program around reducing total unit and dollars lost, the shrink percentage will need proper proper proper care of itself.