shrinkage

I am concerned about increased shrinkage at my retail business. Can you suggest some easy-to-implement methods to address this problem?

Unfortunately, you must view both employees and customers as sources of shrinkage and remove as much temptation as possible from both groups. Customers should know that store employees are aware of their presence, and employees should be able to see all parts of the store. This may require some rearrangement of your space to provide sight lines from the cash register or mirrors when direct observation is not possible. Keep small, valuable items under lock and key. Establish a reputation for prosecuting shoplifters

There are ways you can reduce employee theft as well. Try to be sure that there are at least two employees present at all times. Know how many keys you have and who has them. Be sure that everyone enters and exits the store through one door (preferably at the front). Examine all parcels leaving the store, including packages being carried out by employees—including managers—and garbage. Reward honesty in employees, share shrinkage data and reward reduction in losses, and provide a generous staff discount.

Phyllis G. Holland, PhD, Professor and Head, Department of Management, Langdale College of Business, Valdosta State University, Valdosta, GA