Many have attempted to stop their losses. Some have been successful, while others have failed.
So, what’s the Big Secret?

The truth is that it’s a simple matter of senior executives understanding the differences between strategies and tactics. Without a thorough understanding of these differences, you will be doomed to tactical, short term efforts that, at best, can only yield short term results. So why are some companies more successful than others ? The business of Loss Prevention is both simple and complex. The simple part is that successful Loss Prevention is really little more than a business of human behavior, motives, opportunities and consequences. The complex part is that far too many Supermarket and Convenience Store Executives struggle to “implement” effectively programs that they hope will thwart theft and fraud. Programs that all too often rely on expensive new equipment and technologies that they believe will be the panacea for their problems.

What these Executives forget is the REAL TRUTH, which is…

Technology doesn’t stop shrink – PEOPLE stop shrink !

Each year, I conduct seminars and training workshops for hundreds of owners, executives and managers of retail stores across the Country. And, at every one (and I mean every one), I’m asked what to do to attack a particular problem or resolve a particular situation. After 19 years of researching the causes and cures of shrink loss in retail, I have come to one, crystal- clear realization. The fact of the matter is…

…Far too many senior executives simply don’t understand
the differences between strategies and tactics.

Here are the simple Truths…

Strategy is described as… “The art of devising a careful plan or method, aimed at the eventual accomplishment of a specific goal.”
Strategies are therefore, typically long-term, big-picture solutions to problems or opportunities. Strategies are what your people feel, understand and self-actualize when they think about loss “prevention”, “shrink control”, and their jobs as they relate to “profit realization”.

Tactic is described as…”The employment of specific means toward the accomplishment of a defined objective.”
Tactics are therefore, typically short-term efforts, devised to aid in the accomplishment of those longer-term, big-picture solutions (strategies). Tactics are the steps your people take and the things they actually do to control their profit losses.

Without a full understanding of these differences, owners, executives and managers are doomed to tactical, short-term efforts that can only yield short term results, as opposed to lasting, long-term, strategic solutions.

Here are a few quick examples of tactical vs. strategic loss prevention or shrink control approaches:

1. Problem: Perishable shrink is too high
Short-Term tactical approach: Code date the cooler.
Long-Term strategic approach: Teach employees to understand and implement the…“Rule of 3”(1), as it applies to perishables. Code dating coolers is just 33% of the solution.

2. Problem: Shoplifting
Short-Term tactical approach: Buy cameras and DVR.
Long-Term strategic approach: Learn the proven techniques that you can use to… “Shoplifter-Proof Your Customer Service program”(2). Use cameras within that program.

3. Problem: Cashier Theft
Short-Term tactical approach: Instruct LP personnel to watch cashiers more closely.
Long-Term strategic approach: Teach Managers, Head Cashiers and Cashier Trainers how to…“Breathe new life into your Cashier Productivity and Theft Prevention”(3) with everyday “shrink talk”.

4. Problem: Back Door Receiving Errors & Theft
Short-Term tactical approach: Purchase & install an Automated DSD program
Long-Term strategic approach: Re-train Receivers regularly. Teach Receivers the…“15 Steps and 7 Best Practices For Back Door Receiving”(4).

Let me leave you with this simple, yet exceedingly important thought:

Short-term Tactics alone will NOT stop your shrink problems…

Without a carefully conceived, Strategic plan of action to follow…and the full support and thorough understanding of that plan by your key store PEOPLE…you will, more likely than not, be doomed to failure in your efforts to stop your store shrink.

If you want to know more about creating and causing a Strategic Loss Prevention
Culture in your stores, call Larry Miller at (602)448-8500. The first 30-minute consultation is ABSOLUTELY FREE. Or you can email Larry at larry@RetailControl.com.