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Anti Shoplifting Campaign (Cost To Retailers)

Cost To Retailers

Shoplifting by customers ( or customer in collusion with employees) obviously reduces company inventory levels. This non-sales reduction in inventory negatively affects the retailers in at least three ways:

  1. Shoplifters of all types normally steal the most desired merchandise. Sometimes literally stripping individual stores clean of certain items. Theft activity frustrates a merchant's attempt at remaining fully stocked in desirable merchandise, actually leading to customer dissatisfaction. A situation no retailer can afford with competition being as fierce as it is today. This customer dissatisfaction is compounded when retail companies raise prices to compensate for lowered gross margins due to theft!

  2. Stolen Items must be replenished. And replacement costs may be higher due to the loss of special purchase deals and/or inflationary price increases. Again, the cost of replacement, in any case, reduces a retailer's profit per transaction. Also, the capital used to replace stolen merchandise may have to be taken from other profitable ventures. 

  3. If Company employees steal cash received for legitimate purchases, reported sales remain the same. However, the cash related to reported sale isn't available for inventory replacement. Inventory replacement capital must now be diverted from other areas such as expansion into new merchandise or trading areas. 


    The costs of retail theft are multi-dimensional. Customers, Company employees and stockholder all pay for spiralling losses. 
    Retail companies unable to identify the causes of their losses and control it, will fail to compete effectively in the tougher market ahead. 

    A brief message from Security Tags Wholesale Team. 
    Ref: Shoplifting Control- Read Hayes, CPP

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