Shrinkage continues to be most vital threat to this segment globally. In the global retail industry, where average net margins are just 3%, losing nearly $160 billion annually, or 2% of the industry's $8 trillion in total annual sales, is a significant problem. The reason is Shrinkage- the amount of a retailer's net margin by waste, theft, and product spoilage.
Retail shrinkage is the portion of your inventory that gets lost or stolen. Keeping your shrinkage rate low is critical to success in business.
Challenges and Solutions
Today, theft and loss pose the following multi-dimensional threats for retailers:
- Increasing and costlier shrinkage losses
- Inability to easily pass on or absorb these financial losses
- Increasing legal risk for inept crime and loss control efforts
- An unending supply of savvy, adaptive criminals
Additionally, numerous alternative shopping formats, such as e-commerce, catalogs, and home shopping networks, are now vying for consumers' attention, thus challenging the traditional retail store format to remain relevant and profitable in this technological age.
Location for Security Cameras in Retail
Though every retail outlet is different in terms of its size and merchandise layout, yet each has an exit and entrance, cash register station, and sales floor. Placing security cameras near high-trafficked and unguarded areas within your store will help reduce the number of retail crimes. At the same time, properly installed retail security systems ensure that shoplifting and employee theft will be recorded on camera.
Entrances and Exits: Mount retail security cameras directly above or near your store's entrance(s) and exit(s) to monitor the flow of customers and employees. This location provides a clear view of each person coming in and out your storefront. With high quality IP video, you can recognize and identify faces to save as evidence if needed.
Cash Register: The cash register is an extremely sensitive area and should be monitored at all times. Dishonest employees will steal directly from the cash register, and as a business owner with a never-ending list of responsibilities, you can't always be there to make certain that all sales for the day have been accounted for. Retail security cameras should be mounted above the register to monitor and observe all activity taking place at the register, including transactions, refunds, and money counting. To catch employees who you suspect are sweet-hearting, install cameras directly above the scanner.
Sales Floor: Always outfit your sales floor with at least one security camera. Depending on the size of your business, you may need a considerable number of security cameras to cover the space. Poorly lit aisles or areas that are difficult to see should also be monitored by cameras. Shoplifters tend to migrate towards store locations that lack sufficient customer service or have less visibility.
Warehouse: Thieves often access store warehouses to steal inventory and/or cargo. Millions of worth of cargo items get stolen from warehouses, loading trucks, and docks. You can install security cameras up on beams, drop ceilings, or main ceilings to oversee the inventory. Parking Lot: If your store has its own parking lot, install a video surveillance system to cover this specific area. Vehicle break-ins are common in store parking lots for employees and customers. Installing network video cameras in your parking lot makes license plate recognition possible, which is extremely helpful in cases where a perpetrator has fled the scene in his or her vehicle.
For more information on how you can protect your business, Vista CCTV invites you to call one of the security specialists toll-free at 6615865080 or visit our informative interactive presentation and live video camera demonstrations for even more details.
