Tell me about stock theft! (biz plan!)

[2rockfarmers]

Can anyone help me learn about forecasting/planning for inevitable theft of stock? I am in the midst of planning for the opening of a country clothing/equipment store.

- In your business, do you factor in a percentage that you expect will be stolen each year?
- Can you share any top tips on avoiding theft altogether!
- Are sensormatic tags on clothing worth the money and faff?
- Theft by staff! - any thoughts?

Really interested to hear any general experience/advice on the whole topic

 

[Root 66 Woodshop]

Hi, and good luck with your new business venture.

Firstly, I don't believe that any business should factor in a percentage of stolen items annually, If the shop is managed correctly and staff are properly trained to foresee the possibility of a crime being committed then you shouldn't have any theft now or in the near future.

CCTV is always a good consideration where you're trying to avoid theft... but it isn't a must. I could provide you with information if you require on the equipment, based upon your shop size if you wish.

Tags on clothing I believe are one of the best products out there. Whether it be the system at an entrance or the type that explode leaving horrible dye all over the garments... both are great, although the latter can be the most annoying.

Had one site we visited recently, where a staff member had tried to remove a tag because it was "faulty" as she called it, it wouldn't pull off the garment, turned out she was doing it incorrectly and it exploded all over her, the customer and the shop front Funny yet annoying.

The other thing to worry about is when a staff member forgets to remove the tag and you end up with a very angry BLUE person at your shop demanding a refund and cleaning expenses.

Theft by staff... should never be a concern, but if you have your doubts beforehand put a routine search into the staff handbook so that they are aware that at any point they can and will be searched.

CCTV can also cover the above to a certain degree.

 

[Talay]

...... Firstly, I don't believe that any business should factor in a percentage of stolen items annually, If the shop is managed correctly and staff are properly trained to foresee the possibility of a crime being committed then you shouldn't have any theft now or in the near future. ............

Just like you wouldn't factor in any percentage for breakages, for damaged goods, display models, samples etc.

If you don't factor in some percentage, your whole understanding of your business profitability is compromised.

Now of course, you'll have more theft of bags of sweeties than 1000kg steel girders !

 

[sweet lady]

And don't forget if you have CCTV it has to be registered and renewed every year which will cost

 

[mhall]

You will always get shrinkage, the trick is to control it and account for it as best you can. I would suggest that if you are expecting it to be high enough to affect the business plan, you are possibly being over cautious. Some of the things we sell are very desirable and most of the time we can stop them being pinched, but you will rarely foil the determined thief, especially the professionals.

Staff theft hurts the most but it happens, especially if the till is not monitored (a till being "over" is worse than being "short" in my opinion) I tell my staff that there are 34 ways to fiddle the till and I know 33 of them.We get more shrinkage from silly staff breakages than theft. If I was forced to put a percentage on it I would say around 2% if that helps with your plan