Black Friday Loss Prevention Tips
Black Friday is a retailer’s dream, the biggest shopping day for many retailers often catapulting them into the black for the year. But is it really a dream? Not for the folks in loss prevention, for them it’s a nightmare. Often the retail industry focuses on the massive sales increase during black Friday and the weeks that follow, but there is a dark side to all of this. Along with the sales increase, shrink increases as well, everything from sweethearting and void fraud to procedural errors. Some of these issues can be prevented by properly training employees; however when a queue reaches 20 people and a clerk speeds up to shorten the line they may make mistakes, they are only human after all. The other issues – sweethearting, shoplifting, etc. – are not resolved by proper training. Below are a few Black Friday loss prevention tips for the big day and the weeks that follow.
1) Properly train all employees. As mentioned above, properly training an employee will help reduce much of the loss from procedural error during the shopping season. You also need to train your managers and supervisors on how to perform in store training. This way when a mistake is noticed, the clerk can be approached and trained quickly on site to prevent further mistakes. Also hold a refresher course for full time employees. They may have plenty of experience on what to do, but the holiday shopping season is a whole new beast.
2) Know what to look for. This could probably fall under training, but is more focused towards the LP employees. Train yourself to locate red flags and know how to react when you spot one. An employee who makes one mistake may appear to be a red flag, but if they only have the one mistake then it is simply that, a mistake. On the other hand, if an employee makes the same mistake multiple times a day, it may not be a mistake and you need to take action before the loss is significant.
3) Reward those who do well. Often in loss prevention we focus on the negative. This may be our jobs, but it does not mean we can’t look at the bright side. If you have employees who are performing well and have minimal mistakes or issues, reward them. This will only drive them to perform better and push others to perform as well.
4) Integrate with Agilence. Our retail intelligence solutions collect data from all inputs in the store, including video. Our software is able recognize red flags that may cause shrink, and will notify you immediate when it does. Our analyst team keeps an eye on the video so you don’t have to. This way you are free to focus on the first three tips to ensure that your store has the best holiday margin possible.
5) Use AdCheck. AdCheck is one the many features inside of Retail 20/20. Every retailer runs some type of promotion on Black Friday, and this feature makes sure that promotion is run properly. It analyzes every transaction that is part of the promotion to check for inconsistencies and training issues. It reports these back during the promotion so that the problem can be solved instead of costing you money.
There are many things a retailer can do to prepare for Black Friday. These preparations are more effective when you have Agilence solution providing you with data in real time. You shouldn’t have to use old data to stop shrink, use real data to prevent it in the first place.