Month: May 2019

Profit in any business requires an increase in income and decrease in expenditure. The same theory applies to the retail industry. To make profit in retail requires an in increase sales and reduction in shrinkage. This concept has so far been non-existence in the retail industry where the focus has always only been on increase sales and hoping that the problem of shrinkage will miraculously disappear.
Retail shrinkage occurs as a result of poor or non-existent loss prevention policies and procedures. Therefore, it is imperative that any retail organisation that wishes to remain profitable include loss prevention in its standard operational practices.
Loss prevention is the series of activities that are geared towards the reduction or elimination of all potential loss within an organisation. In the past, loss prevention has been confused with security. While security is a part of loss prevention, security is reactive, basically geared towards identifying shoplifters and employees suspected of stealing, loss prevention is centred around all the activities that are responsible for store loss. It can be known loss such as damages, returns and errors or unknown loss such as shoplifting or employee theft. Preventing shrinkage is simple if we understand the sources of the loss. Last year, UK retail industry spent 771 million on loss prevention, despite this spending, retail shrinkage rose by 5.4%. This has remained the story of loss prevention in the UK for many years. Shrinkage reduced by a few percent one year and increase by several percent the following.
What is the reason for this, the answer lies in the way loss prevention funding is allocated. Even though the levels of funding differ from one organisation to the other, the principle remains the same: spending more for less return on investment (ROI).
The Global Retail Theft Barometer report stated that for the 12-months ending June 2009 crime cost UK retailers 4,063 million. This is broken down as follows:
Customer theft 1,767 million (43.5% of all shrinkage)
Employee theft 1,479 million (36.4% of all shrinkage)
Distribution chain theft 175 million – (4.3% of all shrinkage)
Administrative error – 642 million – (15.8% of all shrinkage)
Total Shrinkage – 4,063 million – (100.0% of all shrinkage)

Total loss prevention spending for the same period was 771 million slightly down from the previous year of 785 million.
Broken down as follows:
Contract Security – 270,621,000.00
In-house Security – 162,681,000.00
Security Equipment – 223,590,000,00
Cash Collection – 61,680,000,00
Other LP Spending – 52,428,000.00
However, in this same period, shrinkage as a percentage of sales rose to 1.37% a rise of 5.4% from 2008 figure of 1.30%.
This brings us to the central thesis of this article: Why is retail loss prevention measure ineffective?
The answer lies in the way funding is allocated. To produce the desired result, retailers first and foremost need to determine the source of loss and allocate funding according to the ratio of loss and the ROI.
The below table outlines this point better, it shows last year retail spending on loss prevention and their return on investment:
Measures: Spending: ROI Achieved:
Trained Employees – 6.8% – 50%
Security Personnel – 56.2% – 2%
Security Equipment – 29% – 45%
Signs & others – 8% – 3%
Customer related theft accounts for only 21% of retail shrinkage the remaining 79% can be broken down into cashier cause 32%, followed by general employee cause 24%, receiving 10% and the remaining 13% is the result of damage and error. But the interesting point that needs to be noted is that even though 79% of retail shrinkage in caused by internal activities, retailers spent more on combating customer related theft than on employee cause.
56.2% of loss prevention resources were on security personnel that produced only 2% ROI, 6.8% was spent on staff training that produced 50% ROI. It is not difficult to see why despite the huge spending on loss prevention, retailers have not been able to affect their shrinkage level. There is a direct correlation between loss prevention spending and the ROI. Until such time that retailers get the balance right, loss prevention spending will continue to produce negative result.

How to make loss prevention effective?
The following are measures when implemented can lead to massive reductions in shrinkage levels and increased profits:
Measure the Scale of the Problem
Analysis daily profit and loss report
Complete top management involvement
Create awareness of the problem
Continuous education and discipline of employees
Inspect What You Expect
Set Measurable Targets
Take Advantage Of Technology
Develop the act of flexibility in approach
Change from present paradigm

Loss prevention is a science and like any science, it requires a systematic approach. Loss prevention personnel cannot approach it with cross fingers praying for the best. Gone are the days when retail crime such as shoplifting was seen as teenage leisure activities, or conducted by drug addicts. Many incidents of shoplifting are now carried out by Organised Retail Theft rings with levels of sophistication never before seen in the retail industry. We as loss prevention experts along with law enforcement agencies have to wake up to this fact and try to build our own capabilities to respond accordingly.
Increase sale does not necessarily mean increase profit the quicker retail executives crabs this concept, the sooner they will be making sustainable profit.

With the economy in a seemingly unending nosedive; many small retailers are finding it increasingly harder to survive. It is quite simple, as people are tightening their budgets; they are cutting back on their leisure spending or finding more economical alternatives to what they used to do in the more opulent times. So how can you save your stores? One way that you can increase efficiency while cutting down on inventory shrink levels is through an investment in point of sale software.

How exactly can hosted software ease your burdens? Well, one effective way is through customer tracking. The system can track all of the purchases made by each customer to detect patterns and to reward customers who have certain performance levels. The saying goes that the best customer is a repeat customer.

Next, hosted point of sale software will allow you to track your inventory so that you can see which units of stock are not performing. With this knowledge, you can know to stop purchasing certain items and you can know which items are in desperate need of a promotion to get them off of your sales floor. Inventory management is critical for the retail chain’s survival.

Another way that you can improve your business via hosted point of sale software is through employee tracking. You can have your employees put their unique identification tags in for every sale that they are responsible for which will create a record of their sales performance. The employees may not appreciate the added stress of having to perform, but this will certainly revitalize your company and give your employees incentives to sell. Point of sale software can improve employee performance and make sure that they do not shirk their responsibilities.

Along with the measurement of employee performance, point of sale software can measure supplier performance. You might think that a particular brand is doing your company a lot of good, but with the cold hard facts, you will actually know which brands are over performing and which are under performing. You can increase orders from the suppliers that are over performing and help the underperforming suppliers to exit your company. Less waste gives you a better shot at increasing your profit margins and taking your company into the black.

A hosted point of sale software system can help you cut back on inventory shrink, employee theft, and just theft in general. If your system is telling you that there are 5 items in the stock room, but you cannot find them, you will know that it is time to increase security and surveillance in the stockroom. You could also conduct interviews with each employee to see if they have any information regarding to the missing merchandise. Without the point of sale software, you would only be able to assume that the stock was missing or you may even think that it was sold.

It is clear that point of sale software can help your business to become organized and make money. There is no good reason to stay with the old cash register and allow valuable resources and time to slip away. Make the smart decision and upgrade today. Point of sale Software

As a criminal defense lawyer in Chicago, it seems that every day I get calls from potential clients who have been arrested for retail theft, or what you may call shoplifting. Most of the people are very nice and are quite embarrassed. These men and women are also concerned about the potential consequences of an arrest for retail theft offense. To be honest they should be, it can be quite trying. For any of you out there considering taking merchandise from a retail store without paying for the items, don’t do it! For those that have already been arrested for shoplifting / retail theft crime, then the following summary will provide a look at what may lie ahead.

In Illinois, retail theft is defined as taking items offered for sale in a retail store without paying the full price of the items. The most common violation of this law involves individuals that conceal items and then walk out of the store without paying for the items. Some individuals pay for some items while concealing and not paying for other items. A less common violation involves switching of price tags, and then paying a price lower than the store offers the item for sale. Though they may seem like minor crimes, all of these violations are criminal offenses and can lead to arrest, prosecution, and even county jail.

Most people arrested for retail theft are charged with a Class A misdemeanor. In Illinois, a Class A misdemeanor is punishable by up to 364 days in jail and a fine of up to $2,500 or both. If the person arrested stole items with a retail value of over $300 they can be charged with a Class 3 felony, punishable by from 2-5 years in the Illinois Department of Corrections and a fine of up to $25,000 or both. If the person arrested has a prior retail theft on their record, the prosecutor can elect to charge the person with a Class 4 felony, punishable by from 1-3 years in prison and fine of up to $25,000 or both.

Fortunately, most people arrested for retail theft are not given the maximum sentence or fine. In fact, if properly represented, there are many options available to stay out of jail, avoid a large fine, and possibly have everything expunged and erased from your record. For example, in Chicago IL and other Cook County courts, first time offenders of retail theft are sometimes offered an opportunity to take part in a theft deterrent program. This program typically involves a one-time, four hour class. The purpose of which is to discourage first time offenders from shoplifting ever again. At the conclusion of the class, each person attending receives a certificate of completion. At the next court date, your criminal defense lawyer presents the client’s certificate of completion and the case is then dismissed. This is a great opportunity to avoid a lifetime of living with a criminal conviction on your record. Even convictions as minor as shoplifting can present problems for current or future employment, or make it difficult for getting approved by the board or association in a place you would like to reside.

Should you find yourself facing criminal prosecution for retail theft / shoplifting, you should immediately consult with an experienced criminal defense lawyer. A skilled and knowledgeable criminal attorney will guide you more easily through the process and give you the best opportunity to avoid jail, large fines and a criminal record.

Andrew M. Weisberg is an aggressive criminal defense lawyer Chicago who has been serving clients throughout Illinois for many years. Areas of expertise are in laws relating to murder, traffic violations and more. Hire an experienced retail theft lawyer Chicago.

Among the most common factors why retail establishments and businesses go or postpone their retail refurbishment projects are because of its cost and intensity. This article will further discuss these elements in the following sections below. Aside from that, this will also share some important points in helping a company to decide on these aspects as well as overcome these obstacles.

The Cost of a Retail Refurbishment Work

On the one hand, there could be at least two (2) major factors that affect the overall cost for a retail refurbishment. These are the scope of work as well as the scale of the business. For example, the cost depends whether the work is big or small. If it is just a minor refurbishment for a retail store, then the company would only need to spend a small nominal amount for it.

However, it also depends on the scale of the business. If the business is big, then their propensity or capability to spend for such works would be different from a small company. For instance, for the same scope of the refurbishment, say a replacement of the shelves with exactly the same dimension, the nominal cost of that would be the same. However, if you are going to take its percentage with respect to the sales of a small store, then it account for a bigger pie of their sales or earnings. In other words, it may be a minor cost for a big company, but it may also not be a minor cost for a smaller company. You can go to www.gildacroft.com for more info on this.

The Intensity of a Retail Refurbishment Work

On the other hand, the intensity of any retail refurbishment work matters for any scale or size business. This is because it is about how they are going to implement the works related to it. For instance, among the top considerations that business owners need to ponder on about this is whether they need to close their shop or not while the improvements are in the works. As a matter of fact, this is especially applicable for those major repairs and enhancements. The bigger the project, the longer it might take them to finish it. In this regard, if they are going to close the shop as a requirement for the works to take place, there would be an opportunity cost for the retail store. This amounts to the amount they should have been earning while they are closed for business.

Among the very lucrative, although unpredictable, business ventures these days are restaurants, retail shops, and cart outlets. Despite widespread belief it being not only a really rewarding company due to the fact that majority of the items isnt only random and inconsistent, but they are bought from extremely low-prices, also, possibly to catch the attention of the people. Items range from toys to clothing and just about everything in between or beyond it. And also due to the variety of the items, the cart business has multiplied to grow to be a big part on the economic market, and that alone is reason enough for a few entrepreneurs to venture into this.

The good thing about these companies is the fact that despite having only a modest amount of funds, one can already start. This completely matches those who want to begin despite a limited budget. Area represents a big role within the success of cart businesses, as well as true enough, the most strategic of places happen to be targeted by merchants – from mall kiosks to theme parks to school grounds, and even corporate buildings. In a cart company, it’s crucial to reach to any target demographic as wide as achievable.

Nevertheless, loan companies remain not satisfied sufficient to loosely accept applications for company loans by carting entrepreneurs. Obtaining money for capital to start an organization could certainly a dull method even just in schemes set as an alternative to little enterprise loan. Due to the lower capital base, a quick-moving money flow is required within the retail business. If your demand for a specific product rises, carting businessmen should right away improve their supply of it to retail. Corporate lenders, however, require collateral along with a excellent company personal credit line as component in the application, as a result of the fact that retail companies are subject to market changes.

Nevertheless, new financing groups are already offering alternative methods to a small business loan through having cash completed by borrowing against future earnings. In this scheme, payment is to be taken off in the receivables till the debt is compensated. Comparable to credit cards, money is accessed in a fast and handy manner, minus the hassle of needing to wait in a seemingly never ending queue, not to mention the overwhelming documentary requirements.

An alternate program in small business financing is through restaurant equipment financing, in which the loan is amortized for a term ranging from 7-25 years, depending on the nature of the loan. This loan is assured with the government, and for that reason appeals to a fair amount of purchasers. These alternative lending programs have grow to be so appealing to tiny, medium and massive companies alike, a healthy competition among financial institutions and new lending firms have turn into apparent. As with all of healthy competitions, the objective is to reduce the prices – or in this case, the standards – to cater to the most client bases feasible. That’s undoubtedly a win-win on both entrepreneur and financing institutions.