Security Measures in

Retail
(Retail Loss Prevention)

Presented By:
Arya Mitra

Contents
Why is Security needed in Retail?

Shrinkage and its Reasons

Reasons for Losses / Security Measures
Retail Loss Prevention
Role of Technology
Walmart-Asset Protection

Why is Security needed in Retail?

Facts:
More than $13 billion worth of goods are stolen from retailers each year. That's
more than $35 million per day.
A study found that the average shrinkage rate (stock loss from crime or waste
expressed as a percentage of retail sales) for India is 2.90 per cent of sales.

The Indian retail industry suffered a total loss of staggering Rs. 9,691 crore due to
shoplifting and waste in 2007.

LOSS PREVENTION IN RETAIL

Shrinkage
Human Resources Problems in Retailing
Internal Loss Prevention Strategies
Preventing Losses at Checkout Counters
E-Business
Counterfeiting
Shoplifting
Confronting the Suspected Shoplifter

Shrinkage
Shrinkage:
Retail shrinkage is the portion of your inventory that gets lost or stolen. Your
shrinkage rate is expressed as a percentage based on the value of lost inventory
divided by sales during the same period.

Reasons of Shrinkage

Reasons for Loss in Retail

Losses

Deliberate
Human Actions

Inadvertent
Actions

Deliberate Human Actions

Thefts
Fraud
Vandalism
Waste
Abuse/Misconduct

Measures Against Deliberate Actions

Educate and Train Employees
Staff should serve customers as soon as possible.
Adequate number of working employees should be ensured.
Employees should be trained to be aware and confident.

Physical Security Measures

Elimination of blind spots by re arranging racks and counters.
Display small items in cases that can be locked.
Consider desirable levels of stock on the shelves.

Protective Equipment
Protective Devices such as two-way mirrors, CCTV cameras etc.
Tamper proof labels and security tags.

External Security Measures

COUNTERMEASURES

Construction and Environmental Security Design

Perimeter Security
Barriers
Doors
Intrusion Detection Systems
CCTV
Lighting
Parking Lot and Vehicle Controls
Security Officers
Communications and the Control Center

Inadvertent Human Actions

Inadvertent human actions attributable to loss are:
Purely poorly executed business processes
Where employees fail to follow existing policies or procedures.

A well informed security superintendent of a nationwide chain of

retail stores has estimated that between forty and fifty shoplifting
incidents to equal the annual loss caused by one dishonest individual
inside an organization.

Internal Loss
Internal loss is shrinkage caused by individuals from within the business such as
staff members and cleaning staff and anyone else involved internally in the
company.
Internal shrink accounted for 35% of shrink to businesses in 2011.
Internal shrink is caused by methods such as staff members stealing products,
cashiers keeping the payment for themselves, staff selling products to friends and
family at discounted prices, sweet hearting where product is given for free to
friends and family by staff.

Sources of Internal Loss

Sweet hearting describes a sales associate giving discounts,
uncharged items, or fraudulent returns to friends or relatives.
Inventory Voids- also known as merchandise shortage is the
difference between the recorded inventory and the actual physical
inventory
Embezzlement / Cash Theft

Internal Loss Countermeasures

PHYSICAL SECURITY:
Integration, Open Architecture, and Convergence
Access Controls
Locks and Keys
Intrusion Detection Systems
Interior Sensors
Closed-Circuit Television
Security Officers
Safes, Vaults, and File Cabinets

Carrot & Stick Approach

The carrot includes things like fair compensation, a good working
environment, employer sponsored activities that improve morale,
good communication and concern for success of a company The only
way is to reach some employees is through a stick of an effective
security program and straight forward policy of prosecuting any
employee caught stealing.

Internal and External Relations

INTERNAL RELATIONS
Customer Driven Security and Loss Prevention Programs
Marketing
Human Relations on the Job
Management Support
Orientation and Training Programs
Loss Prevention Meetings

Internal and External Relations

EXTERNAL RELATIONS
Law Enforcement
Public Safety Agencies
The Community
The Media
External Loss Prevention Peers

Retail Loss Prevention

Retail loss prevention is a set of practices employed
by retail companies to preserve profit. Profit preservation is any
business activity specifically designed to reduce preventable losses.

Technology in Retail Security

CHALLENGES OF THE SECURITY

INDUSTRY
Cooperation between Public Police and Private Security

Regulation of the Industry

The Need for Training
Ethics
The False Alarm Problem

Walmart

Walmart and Asset Protection

The problem of retail loss is particularly acute for Wal-Mart. As the world's largest
retailer, with over $350 billion in annual revenues, it has the most to lose from
shoplifting. Analysts estimate that Wal-Mart's shrinkage has risen from half the
industry average and is approaching 1%, with losses at about $3.5 billion a year.
Asset Protection Department:
Walmarts Asset Protection department is responsible for protecting
shareholders investments in the worlds largest retailer, as well as upholding
their promise of saving people money so they can live better.

Thank you.