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Our Community represents many different views and opinions facing the numerous issues in this industry.
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Diversity of opinions and views are always encouraged.

Tuesday, September 13, 2016

Shrink Impact On Profitability

Shrink or shrinkage is a business term used to identify inventory or merchandise that is recorded as being present but unavailable or unsaleable in actual means. This can arise from errors (bookkeeping miscue), dishonesty (employee or customer theft) and/or damage during handling of stock.
As we know it loss prevention directly impacts net profit and this business component must be approached seriously, therefore having or maintaining a low shrinkage volume is crucial. While the rate varies from different industrial standards, a normal shrinkage rate is 2.6 % to sales.
Shrinkage impacts profitability of an establishment leads to:

1.      Reduced Profits and Lost Revenue  
If an inventory is lost that equates it to lost revenue and this impacts profits because you cover the cost of acquiring a good and making no money from the investment this will ultimately drag the business below the bottom line.
2.     Price hikes and Lower wages
Most entrepreneurs and business owners will resort to raising consumer goods prices to account for these lost sales; this can put them at a competitive disadvantage. Businesses may also present their employees with low wages, making it hard to retain or attract seasoned and experienced employees.
3.     Internal Trust Issues
Shrinkage from employee theft destroys the trust culture built and employers will be forced to implement employee bag and coat checks and install CCTV in various areas. This introduces a barrier between employees and their employers and guilt by association for those honest employees who are not part of the problem and this impact negatively on morale.
4.     Poor Service
In a retail business, example, a grocery shop, or a supermarket, where shoplifting has been rampant, employees might tend to be less friendly and leery of customers, partially because they are often at the receiving end through reduced wages. The business owner may decide to put up signs requiring customers to surrender their bags and coats and also excessive use of scanners can dissuade people from purchasing in your store.

5.     Slowed business evolution
Managers often get involved when a high shrinkage rate is experienced and more time is used to investigate and strategize countermeasures leaving little time for growth of the business and employee coaching.

There are, however, strategies for reducing shrink in a business, outlining some of the basics:
·      Getting organized, this is the prime step in inventory management and it should be structured to minimize shrink. Use of EAS tags can help.
·      Regular inventory counts, at least once a year for business. This determines the current inventory value. (Cycle Counts).
·      Accurate pricing of items and updating price file regularly.
·      Embracing technology, for example, barcode scanning, point of sale software systems
·      Training, education and employee coaching, as every business and organization has its own set of standards, practices and values that are acceptable and internal culture defines the relationship among employees and employers and also to an extent the customers.

In the long run, prevention is always the key to avoid loss through shrink and improve net profit.

LPDT, LLC offers the only E-Learning training for Retail Loss Prevention at www.LossPreventionAcademy.com.  Check out our awareness posters for shortage and safety at www.LPPosters.com. You can follow us on Twitter under LPACADEMYcom and Facebook under Loss Prevention Academy.

Monday, September 5, 2016

How Will Retail Look Ten Years From Now?

How Will Retail Look Ten Years From Now?

There is little doubt in the dynamic nature of the retail industry. Predicting how it will look two years from now is quite difficult, let alone ten years. However, certain trends shape for some reason. These reasons could be the result of market trends, customer preference or anything. In short, predicting the future of retail marketing is quite difficult in most cases. Here, we present to your valuable info on how to judge the probable future of the retail industry in years to come:

Retail Trends Are Changing

If you’ve been attached to the retail business, you would know that its landscape has changed drastically in the last ten years. In fact, there is a constant shift in the way consumer shopping trends. They’d see the price, compare it online through their smartphones or tablet PCs and shop for the one having low prices.
With e-commerce becoming a popular way of shopping, things are only going to get tougher in years to come. However, traditional stores are still going great guns. These stores include roadside shops and stores that people provide people with instant shopping options. According to an estimate, these retail stores will account for up to 85% of the overall retail sales in the US by 2025. Keeping the ongoing retail trends in mind, it is entirely possible that the retail industry will see a significant impact from these trends in the next ten years:
·       E-commerce retailing
·       Revolution of distribution
·       Personalized marketing
·       Innovative retail business trends
·       Demographic changes
      A part from these, the upcoming e-commerce boom will likely sweep away many traditional, smaller retail stores.

Will Malls Survive the Amazon Onslaught?

For the past few years, Amazon has indeed revolutionized the retail e-commerce industry in many ways. So much so that it now stands as the biggest online retailer in the world. Amazon provides customers many benefits including a unique and varying collection of many types of consumer goods, a very speedy shipment process that takes few hours, and global accessibility.
The online retail Goliath just announced that it is now testing a two-day delivery pass membership process to improve transfers. Apart from these, retail shopping with Amazon has more security compared to physical shopping. Judging that Amazon could well end up sweeping many physical retail stores in the next few years, Walmart has invested approximately $2 billion in improving its online retail presence.

Despite Amazon, Physical Retailers Will Do Well

To the surprise of many, the brick and mortar stores are doing reasonably well in the market. According to ICSC Holiday Consumer Trends, in January this year, approximately 91% of shoppers shopped from a physical retail store. About 32% utilized click and collect service for shopping but ended up picking their merchandise from a physical store. Before you start wondering why this shift in consumer trends, it would be wise to see the share of e-commerce sector.
Despite an increase in share, the e-commerce segment doesn’t get a huge chunk of retail business. In fact, it barely accounts for 7% of the total consumer spending. While it has taken a good chunk of its share from physical retailers, brick and mortar stores are doing well in the market.   

Who Will Survive the Next 10 Years?

If current trends are anything to go by, both e-commerce and physical stores will serve consumers side by side for many years to come. When you look back, it becomes evident that both market segments have survived and prospered the hard times and are doing well as we speak. However, the e-commerce will steal a bigger share of the market from physical stores. On the other hand, the physical stores have been improving their business strategies to cope up with the challenge they face from e-commerce giants such as Amazon. They’ve been working to train staff with sophisticated loss prevention techniques, online training, and reducing theft and stealing through loss prevention academies that help train their employees for the cause.
Overall, the retail industry could well see both e-commerce and physical retail business surviving side by side. Though the percentage market figures may fluctuate here and there, no serious threat is looming over either segment of the retail sector.

LPDT, LLC offers the only E-Learning training for Retail Loss Prevention at www.LossPreventionAcademy.com.  Check out our awareness posters for shortage and safety at www.LPPosters.com. You can follow us on Twitter under LPACADEMYcom and Facebook under Loss Prevention Academy.

Sunday, August 28, 2016

The Challenges of HR To Maintain Workplace Decorum

The Challenges of HR To Maintain Workplace Decorum

Human Resource or simply HR is a broad field that with time has been influencing companies regarding its importance. An HR department is vital irrespective of the size of the company because managing Human Resource is something the most vital part of any workplace. The purpose of the department of human resource is much more than finding right people for the right job: it might just be the tip of ice burg. The HR department of any organization is required to make sure that they have the right mix of ingredients in their human resources so they can all collectively work to achieve the goals of the organization. But when people come from different background, getting them to gel with each other is a task which is certainly not easy!

For most of the top HR/ER practitioners, there cannot be a harder task than to manage a group of people coming from different backgrounds, level of education and experience. When a workplace offers such diversity, then clashes among them is inevitable. An HR personnel does not only resort to resolve the conflict between them but tends to create harmony so that the office environment remains on a positive tone.

Having said all of this, despite having an HR department, companies tend to face major problems in the wake of sexual harassment and the very common; time fraud and work place violence. These are some of the major problems which the HR department is required to cope with. Not only they have to make sure that it is mitigated to a large extent but they also have to investigate it in order to prevent it from happening again. But since, all of these issues are so delicate, investigating and interrogating for these matters is confronted by large number of difficulties and challenges.  

These challenges are hard to deal with because of several reasons. For instance, in the case of sexual harassment, the HR personnel in most cases is unable to come up with enough evidences to support the claim or prove the allegations. The interviewing and interrogation process does not help much either. It is mostly because the HR personal does not usually receive the training to deal with these kind of issues and as such, is unable to deal with the situation effectively. Furthermore, since in most cases it is done at the places where usually third party is lacking, evidences come short and as such no action is taken. However, this should not be the case because sexual harassment in any way is not acceptable especially in the workplace because it tends to hamper the goal of the organization.

The same problem arises with the issues like time fraud and work place violence. With time fraud, mostly none of the people are prepared to speak out against anyone because they themselves would have been involved in this activity and speaking out would also lead them to a mess. Furthermore, it has been noted that in workplaces such as these, people have formed a lobby enabling them to overpower any honest individual who dared to stand in its way. Moreover, they also tend to find a way to make him fall in this kind of activity as well.

If any workplace has consistently been a victim of these issues then it is the HR department which is to be blamed. But like every other thing, it also come with a solution and that solution lies in training of not anyone else but the HR department. These days, personalized Online Training is available that can help the personnel to learn about non-confrontational methods that can be deployed to investigate these delicate issues. With the help of this training, the individual will be able to attain those soft skills which are an added advantage when it comes to eliciting out the information. 


The Wicklander-Zulawski distance learning is certainly an enriched program which can help you in minimizing the discords that exist in your workplace. They offer a very conventional and step by step course at www.WZAcademy.com to help you attain all the skills that are needed to get the truth.

LPDT, LLC offers the only online training for Prevention at www.LossPreventionAcademy.com. Check out our awareness posters for shortage and safety at www.LPPosters.com. You can follow us on Twitter under LPACADEMYcom and Facebook under Loss Prevention Academy. Lastly, check out our new site with WZ at www.WZAcademy.com.

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