Lost in Transition

I just read the latest “Loss Prevention Magazine” and I am amazed at how many loss prevention executives are losing their way to really focus on what needs to be done to combat the current situation facing retailers across the world.  I broaden this statement by saying a large portion of our retail executives have lost their way as well. They are not focusing on what must be done to get things done to restore our economy and bring back the success they once had in the market place. Instead they are all in a safety posture to try and weather the storm instead trying to beat this downturn and come back stronger in the future.

Dealing with a down economy and slumping sales is a hard spot to be in these days. With shrink numbers rising and theft occurrences on a dramatic rise, cutting back on loss prevention is a fatal error which are going to cause some long lasting effects to some of our once largest and most successful retailers in the world.

I think the shift into a new age of business has been overlooked and companies are making critical management errors when dealing with cutting back on programs to help align bottom line interest.  While everyone knows a company’s responsibility is to protect the shareholder’s interest, making decisions which could decapitate the company as a whole in my opinion is not an effective way to transcend past these current economic problems. Cutting back on marketing, cutting back on hours of critical sales associates, and eliminating your security staff would not be my way of trying to build my business. I know it is unheard of in the retail industry but I think executives really need to think about reinvesting into their business and focusing on the essentials.  I would cut back on all the top heavy aspects at the corporate level.  I look at it like I look at why the military has so many issues because there are to many “Chiefs” and not enough “Indians” to get the job done.  The people on the ground will make or brake your company not the 30 purchasing executives who all earn enough salaries to staff ten stores with full time hourly staffs. 

In the end, I think a lot of common sense has been lost in transition from the old days of business to today’s retail industry.  I recommend people wake up and take charge before it is too late.

For more information contact me at jeremyfetzer@priorityfocussecurity.com.

Keys to Success

After a recent discussion with a loss prevention professional who works for the largest home improvement retailer, it was brought to my attention that the recent strategy of cutting back on security and loss prevention has caused the company to come under fire. My source cited the company has been combating an increase in external and internal theft incidents due to the current economic break down.  The new focus from the executive level has been to micromanage the field operation’s limited staff and have them account for hour by hour productivity.  This new management tactic has caused drops in effectiveness and according to my source has the already limited field staff feeling pressured to make apprehensions which increases the opportunity for bad stops which lead to litigation.

I tell you this story because it is similar to incidents occurring around the world in the retail industry. At the onset of the economic meltdown, retailers responded to the drops in sales by cutting operational support structures like loss prevention, security, and even consolidating human resource staffs to align the controllable expenses.  These management decisions as I’ve stated in my past postings are critical leadership errors which have placed these organizations in a whole new down slide.

The answer to this problem is to reinvest in protecting your bottom line by focusing on strategies which work.  Does it make sense to cut back on marketing when sales are at their lowest in company history? NO! Does it make sense to cut your security staff when you are experience and increase in theft both internally and externally? NO! While limiting your expenditures is critical, cutting back on you defense planning is not the way to go. 

To find out more please visit us at www.priorityfocussecurity.com.

RILA Crime Trends Survey

The Retail Industry Leaders Association (RILA) has reported a growth in amateur or opportunistic events, financial fraud, robberies and burglaries, and organized retail crime incidents have increased in all segments according to the 2009 RILA Crime Trends Survey.

Casey Chroust, Senior Vice President of LP Operation for RILA reported the following increases:

61% increase in amateur and opportunistic events, 55% increase in financial fraud incidents, and a 72% increase in organized retail crime incidents.

The retail market segments included in the 2009 RILA Crime Trends Survey included grocery stores, mass merchants, specialty stores, apparel retailers, electronics and appliances, and fabric and craft retailers.

http://www.securitydirectornews.com/?p=article&id=sd200905qK8hiw

Another reason why cutting back on security during these economic times is not a great management decision.