Common Woes in retailing
Nidhi Sharma 1
Focus on Safety at Retail Outlets
Retailers have to ensure security not only in terms of the safety of
the merchandise and premises but also their staff and shoppers. For
safety purpose there are a few key areas where the retailer should
focus:
1. Recruit personnel only after verifying their background.
2. Impart necessary training to employees to be prepared to
identify suspicious individuals and deal with threats.
Nidhi Sharma 2
3. Establish procedures and policies to prepare and inform
employees on how to react during unsafe incidents.
4. Retailers should have only single central entrance to monitor
customers especially during peak periods and at high risk
locations.
5. Establish random checkpoints at densely populated shopping
areas to enhance security in such areas
Nidhi Sharma 3
Handling of Inventory Shrinkages
Inventory shrinkage at the retail outlet includes a combination of
• employee theft
• shop lifting
• price switching (switching price tags from less expensive to more expensive
items)
• refund fraud (returning stolen or fraudulently acquired items for cash
refunds)
• vendor fraud
• credit card and cheque frauds
• administrative error
Nidhi Sharma 4
Measures to Reduce Shoplifting
1. Improving store layout and
displays. This includes:
• reducing the number of exits
and blind corners.
• carefully placing mirrors.
• providing good, even lighting.
• placing goods away from entrances
and exits.
• reducing crowding near displays of
high-risk items.
• speeding up checkout to reduce
congestion and waiting, which
provide the opportunity for
concealment. Nidhi Sharma 5
2. Tightening stock controls: Inventory control procedures must
permit shoplifting trends to be detected, and shoplifting to be
distinguished from employee theft.
3. Upgrading retail security:
• establishing clear rules for use of changing rooms in clothing
stores
• keeping high-value items in locked displays, or securing them
through cable locks and security hangers
• encouraging shoppers to use supermarket-type baskets for
purchases
• giving receipts and, where there is a high risk of shoplifting,
checking them against goods on exit 6
4. Posting warning notices on high-risk merchandise. Many stores display signs
reminding customers that shoplifting is a crime and warning that shoplifters
will be prosecuted.
5. Hiring more and better-trained sales staff. Stores should hire sufficient
numbers of staff to properly oversee goods and customers, especially at high-
risk periods for shoplifting. Stores must train staff to be attentive to
customers and alert for thieves
6. Hiring security guards
7. Installing and monitoring CCTV
8. Using electronic article surveillance. Electronic article surveillance (EAS) is
often known as electronic tagging. A tag is either pinned onto a garment or
fixed with adhesive to an item's packaging. Exit gates detect tags that have
not been removed or deactivated, and sound an alarm. The tags have been
made progressively smaller andNidhimore
Sharma versatile, and the detectors have
7
Importance of Data Security
Data security is of top priority to any organization. Data security could be
in danger in the following situations:
• A break in security firewall can result in free access to confidential
information on vendor details, pricing policy etc.
• Penetrating into the organization’s financial accounting system and twist
on misuse of these financial statements.
• Tampering the inventory data and thus upsetting the buying plans for
the coming season.
Nidhi Sharma 8
Retail Security Indian Scenario
• India has over 12 million retail outlets of various sizes and styles.
96% of the 12 million plus retail outlets operate in less than 500
square feet area. This implies that India’s per capita retailing space is
about 2 square feet, when compared to the 16 square feet in the US.
• Here also retailers face security problems and inventory shrinkage.
But the figures can be difficult to quote in the absence of any nation
wide study carries out to pinpoint the losses due to fraud and
malpractice.
Nidhi Sharma 9
Stages in retail evolution cycle
• The First Phase: new retail entrants create awareness of modern
formats and also increase consumer expectations.
• The Second Phase: the market is developing and consumers demand
a modern format, resulting in strong growth.
• The Third Phase: the market matures, there is intense competition
forcing retailers to invest in backend operating efficiency. Now
security issues will come to the forefront.
• The Fourth Phase: retailers explore newer markets and opportunities
as growth may reduce.
Nidhi Sharma 10
• In India, retailers are trying to offer their shoppers an enjoyable
experience, where feeling safe is a part of that experience.
• Lifestyle, Crossroads, Shoppers’ Stop, Big Bazaar, Pantaloon and
others are employing a security force of over 30,000 guards who are
trained in fire fighting, mob handling and other procedures.
Nidhi Sharma 11
Parking Space Problems at Retail
Centers
• There has been a phenomenal increase in the range
and variety of automobiles available to the Indian
consumers since the mid-1990s. So large section of
middleclass have taken to automobile purchase and
usage, especially for shopping purposes.
• This has resulted in the spawning of new retail
concepts for meeting the shopping consumers’
requirement of parking space.
Nidhi Sharma 12
Parking Space Problems at Retail
Centers
• The retailer has to provide the required space in the most desirable and
in a cost effective manner.
• Retailers should build parking with multiple access options provide easy
entry and exit.
• Retailers must make use of way-finding signage systems, which offers
customers comfort, assistance and security.
• Usually parking structures can be one of the first things which a shopper
sees on entering the shopping center. Thus , while designing the parking
structures, more emphasis should be placed on its attractiveness, safety
and accessibility.
Nidhi Sharma 13