Shoplifting: Why It Hurts Both Businesses and Consumers

Despite efforts to curb the problem, shoplifting still continues to be a problem that costs businesses millions each year. Both independent stores and major chains are affected by shoplifting, which doesn’t appear to favour any particular item. In fact, business insurance studies reveal that the most common items stolen are clothes, shoes, and electronics.

A recent study calculated that the true cost of shoplifting is directly related to the profitability of a business. For a business with a 10% profit margin, a stolen item costs £200 in sales. However, a business with a one percent profit margin would have to generate £2,000 in sales in order to recover the money lost. Ultimately, shoplifting hurts everyone in the chain, including the consumer who will see prices rise as a result.

When a store experiences shoplifting, revenues and profits suffer, and the cost of implementing security measures is passed on to consumers. Additionally, local jobs might be lost if the store has to close. These consequences are far-reaching. Fortunately, there are several ways to prevent shoplifting while it still remains a significant issue.

The vast majority of shoplifters are not caught. As a result, the vast majority gain confidence because no one seems to care. This is why the issue needs to be addressed by stores and legislators.

Stores can learn to help themselves to be less of an attractive target. To prevent theft, keep valuable goods out of reach of shoplifters. Stores can prevent shoplifting by implementing the following tips to avoid theft in the first place. Small, valuable items are the most easily stolen so make sure they are secured with a Security Seal. Find out more at a site like acmeseals.co.uk/.

Keep more expensive items near the cash register or better, behind the counter. If possible, install security cameras in the store. While store owners can’t constantly monitor all areas of their stores, a security camera allows you to monitor suspicious activity especially in high theft parts of the store.

Some stores have the budget to hire a security guard but for smaller independent operations, this is not always possible. This is why it is essential to invest in smart ways to beat thieves that don’t necessarily require a large investment. A camera system, careful positioning of valuable stock and security seals will go a long way in deterring potential shoplifters.