A CCTV System Helps Shrink Shrinkage in Retail

Does your retail store use a CCTV system for security? If you don’t, you might want to take a second look at the cost-benefit ratio of installing a CCTV cameraand CCTV security system to reduce your shrinkage and help head off other problems.

What’s your shrinkage ratio? If you run a small retail store, there’s a good chance that your shrinkage rate is unacceptable. On average, say most global retailing experts, the retail shrinkage rate is about 2 percent, but new numbers in October 2011 showed an alarming increase. In the United States, for example, the average shrinkage rate – the amount you lose to theft and fraud – is about 6 percent. The shrinkage rate varies widely among the various business sectors, though, with jewelry stores – who are more security conscious on the whole – at the low end of the list and children’s clothing store at the top.

Can you afford to lose 6 percent of your inventory to shoplifting and employee theft? If your answer is no – and it should be – then a CCTV system, properly deployed, can help reduce your shrinkage rate substantially. A study conducted in the UK found that shrinkage rates from shoplifting and employee theft dropped by an average of 26 percent within six months of installing a security camera and CCTV system in store.

Best Practices for Implementing CCTV Security

Security camera placement is crucial to your results when you implement a CCTV security solution. Keep in mind that a major reason for the reduction of theft is intimidation – both shoplifters and employees are less likely to risk stealing from you if they know they are being watched. Place your cameras in view to make it obvious that you are using a video surveillance camera.

Use CCTV Security at Point of Sale

Most employee theft happens at point of sale. If you focus all of your security on the sales floor, you’ll be missing the largest potential source of shrinkage – your employees. Placing a security camera at the point of sale allows you to record each sale and review them later for signs of employee theft. A surveillance camera may also serve your employees in disputes with customers, which is another selling point for installing a CCTV surveillance system in your business.

Shrinkage may be an inevitable part of doing retail business, but that doesn’t mean you shouldn’t do everything in your power to reduce your losses. A CCTV system is one of the easiest and most effective ways to get a handle on loss and reduce the shrinkage ratio of your business.