Expert Warns:  Retail Losses Expected to Rise

Leading international loss prevention expert warns all merchants from all retail sectors to better prepare for a drastic increase in retail theft. FJ Tarasoff, a top retail loss consultant recently made this statement at a retailer conference.

He suggested that merchants need to take a pro-active approach towards retail theft . He said, “ We have already experience a significant jump in overall retail shrinkage in both Great Britain and Australia over the last year and are beginning to notice a similar spike in losses in Canada and the US”.

It is believed that economic conditions have an impact on overall levels of losses in the retail sector. Rising fuel costs, which contribute to a rise in consumer products appear to be the main factor in both internal as well as external theft.

Typically a business suffers combined losses of annual sales between .5 and 6 percent depending on the type of business and the level of security within that business. In Britain and Australia those figures have jumped to between 1 and 8 percent in the last year and are expected to climb. Tarasoff says that it is only a matter of time before the North American market reaches similar loss figures unless retailers act quickly. Currently most merchants may not even be fully aware of the impact of retail theft and may be unaware of how much actually walks out the door unless they practice strict inventory controls. Even establishments with sophisticated security systems need to be aware that thieves have become more sophisticated and are able to outsmart most security systems, due to a large part because of the internet. The internet has become an instructional resource for thieves to sharpen current and to learn new skills. From electronics to vitamins, thieves are mores successful today than ever before. It should be noted that most stolen goods are gone for good: For every dollar recovered, $30 is lost.

Tarasoff says that not all merchants need to spend tens of thousands of dollars on security surveillance systems to get results and reduce those losses. He prefers to focus on deterring and preventing losses as the most cost effective method of dealing with this growing problem and proper management and staff training is the key. Invest a small amount of money on training and you will save thousands in losses annually.

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