The Last Word: Customer Solutions Profit Ideas

 I recently read that theft is rising at Wal-Mart stores.  Not only by shoppers, but from employees “helping themselves to goods they haven’t paid for.”  This contributes to what many companies call “shrinkage” which is inventory losses related to everything from supplier issues to shoplifting. What Sam Walton, as the article states, used to call “one of retailers’ top profit killers.”  The National Retail Federation http://www.nrf.com just released a study stating that theft accounted for $41.6 billion last year.  While Wal-Mart is below the industry average for what shrinkage represents as a percentage of sales, it is projected to increase.  The reason for Wal-Mart’s projected rise in shrinkage is due to the reduction of surveillance and related security measures – a direct result.  I hate to see companies pull back on these efforts.  Employee theft is a real issue and a reality in most businesses which must be address aggressively and head on.  Maintaining a tight control on employee theft and loss prevention is what keeps your inevitable percentage of shrinkage lower than the national average.  The sad truth is that you can never eliminate it completely.