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Anand Thakur, Lovely Professional University Unit 11: Loss Prevention and Shrinkage Control

Unit 11: Loss Prevention and Shrinkage Control Notes

CONTENTS
Objectives

Introduction
11.1 Importance of Security Measures
11.1.1 Safety and Security Factor Considerations in the Retail Store Design

11.1.2 Fire Safety and Fire Hazards
11.1.3 Ergonomics
11.1.4 Air Quality
11.1.5 Visual Inspection of Premises

11.1.6 Crime
11.1.7 Lighting
11.1.8 Employee Training

11.2 Shrinkage
11.2.1 Forms of Shrinkage
11.3 Methods & Ways to Reduce Shrinkage
11.4 Scrap and Surplus Management

11.5 Summary
11.6 Keywords
11.7 Review Questions

11.8 Further Readings

Objectives

After studying this unit, you should be able to:
Define importance of security measures

Discuss reasons for shrinkage
Describe methods and ways to reduce shrinkage
Explain scrap and surplus management

Introduction

For all retailers, the standard sign of success is an annual increase in business volume.
Concentrating on selling more, more, more is key; but doubling, or even tripling, gross profits
is small consolation if the net profit remains the same, or – heaven forbid – decreases. It’s the
bottom line that counts, and mushrooming costs can give the growing retailer a false sense of
security.

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