In the retail world, shrinkage is the unavoidable monster.  Employee theft, shoplifting, and even accounting errors total losses of billions of dollars for retailers annually.  Though it’s virtually impossible to entirely cut your losses, it is possible to minimize them. 

Studies conclude that even though more attention is given to shoplifters, internal theft is the overwhelming cause of shrinkage.  According to the National Association for Shoplifting Prevention, there are approximately 27 million shoplifters in the U.S., accounting for the $35 million worth of products that are shoplifted every day.  So, what can you do to protect your store?

Install Security Cameras.  You see them in a multitude of retail stores – cameras hidden inside dark domes attached to the ceiling.  Footage from closed circuit television cameras can be seen daily on the evening news.  And shoplifters fear them.  The cameras can be costly to install, but their effectiveness far outweighs the losses you might incur otherwise.  Can’t afford to install closed circuit security cameras?  Buy the inexpensive, dark dome casings and put them up all over your store.  Just because there is nothing inside doesn’t mean it can’t outsmart a criminal. 

Watch your dressing rooms closely.  Make sure your employees are monitoring everyone and everything that goes in – and out – of the fitting rooms.  Many shoplifters will conceal more than one garment on a hanger.  Once the shoplifter is in the dressing room, they are able to steal the excess clothes.  Have your employees count each piece of clothing – not just hangers. 

Reorganize your sales floor.  Make sure you can see virtually everything in your store.  Move racks and shelves to minimize blind spots, and install large mirrors to showcase movement in the places you cannot see.  Keeping customers from being able to hide from your view will minimize the risk of them stealing by concealing items in their clothing.

Learn to recognize shoplifter behavior.  Take notice of customers who seem particularly nervous.  Shoplifters may pick up random items while paying more attention to the actions of the cashier or sales team.  Watch for customers with oversized and baggy clothing — stolen merchandise can be easily concealed this way.  Also, pay close attention to customers who come in often but never buy anything.  And remember, shoplifters typically have the most success during the times when employees are least attentive – during opening, closing, or changing shifts.

Prosecute every shoplifter.  Shoplifters are caught only 1 out of 48 times they steal.  Worse, they are only prosecuted 50 percent of the time according to the National Association of Shoplifting Prevention.  This means that, if customers know they can steal and get away with it, they will do it again and again.  No matter what the situation, call the police and teach the thief that shoplifting is a crime with serious repercussions.