In this brutal economy, retailers of all stripes say loss prevention is one of their top priorities. Sixty percent of retailers with annual revenue greater than $5 billion rate organized retail crime as a top business challenge vs. 33 percent of the smallest and 36 percent of mid retailers.
Retailers, especially those in the lower tier-one space that are growing, are most concerned about becoming larger targets for thieves, according to RSR's new report, "Loss Prevention in 2010: Battling Shrink in Tough Times," by Paula Rosenblum and Steve Rowen, RSR managing partners. Smaller retailers see employee-related theft as a top concern. But as revenues rise, so does trust in employees.
For all of the respondents (83 retailers from the consumer goods, general merchandise and apparel, and hardware/DIY), manpower expense has become a much larger concern in 2009. More retailers report that having the staff required to review loss prevention and audit data is a significant inhibitor to their ability to adopt new initiatives. For winners, though, the ability to execute is the enemy. Twenty-five percent of retail top performers say they have a good loss prevention plan but need to improve execution. The key to overcoming those challenges, they said, is through the implementation of better business tools.