Retail Security Systems : Minimizing Theft & Maximizing Productivity One Camera at a Time
I often get calls from retail customers telling me how much of their product goes unaccounted for on a monthly basis and that they need something to help figure out where it’s all going! When it comes to loss prevention, CCTV surveillance systems stand out at the top of the list for maximum return on investment. Installing a security system helps retailers monitor & investigate on shift employees, fake trip & fall scams by their customers, proper cash & inventory management, minimizing inventory shrinkage, and so forth.
We all want to believe that our employees are trustworthy and looking out for the good of the company, but it’s not always the case. One of the major and most frequent causes of inventory shrinkage is internal theft. I had a customer not more than 6 months ago that could not figure out how his inventory counts kept coming out about $10,000 short of the expected value. When his security system was up and running, he caught two of his employees backing a truck up to a remote exit and putting duffel bags full of his product into the truck bed. He fired the employees the next day and his inventory count was right on the money that following quarter.
- US Retailers lose roughly $35 million worth of goods on a daily basis which totals up to $13 billion a year
- There are about 27 million shoplifters in the US, which is 1 out of every 11 person, and in past 5 years, only 10 million were caught by security
- According to Association of Certified Fraud Examiners, retail businesses will lose approximately 6% of their revenue from employee theft
Many studies have definitively shown that retailers recover their CCTV surveillance system investment, $3000 on average, in the first 6 months by avoiding fake lawsuits, reducing shrinkage, and catching shoplifters before they leave the store. This is mainly because retailers can easily and remotely monitor the areas that their employees can’t always keep their eyes on and react before their product is out the door.
CCTV Surveillance systems can also help retailers make better decisions based on historical data gathered by their system. If your analytic software shows that your store sees 25% more customers on Monday and Wednesday afternoons, you’ll know that you probably need another person on the floor helping customers and ushering them towards your high margin products to maximize your sales on those days.
So, how can you reduce this type of theft? Many leading security experts highly recommend by selecting right type of CCTV Surveillance system can drastically reduce theft and keep your employees working at their highest potential.