Good news, there is some evidence emerging that the relative low cost of advertising to staff the risk of being caught being dishonest “works” - hoorah!

For example, one retailer reported that they had contacted a high shrink store and let them be aware that they were heading into a “high shrink – special measures” programme, with additional investment and focus on shrink. Before making any changes or investments, and even before they entered into special measures, the store recorded an 18% reduction in loss, suggesting that a reduction in staff dishonesty [and better controls]

In another example, a retailer installed technology that could recognise licence plates in their fuel forecourts but ONLY the store associates were made aware of this new technology. In the first month, incidents where where the customer filled their car with fuel but rather than pay, drove off, reduced by 60%. This illustrates the potential scale of the internal theft problem, involving collusion.

Finally, one retailer was able to evidence a significant reduction in shrink with the introduction of a store wide communication to all managers and store associates about a new central video monitoring capability that can detect all types of incidents of fraud, theft, and poor compliance. Immediately after the communication, they were able to evidence a positive change in shrink, explained by store associate and manager being dissuaded from stealing and undertaking fraudulent actions. The savings in loss were so significant that the benefit to the bottom line helped pay back their investment in remote monitoring in less than 12 months.

In this meeting, we will hear updates from retailers on how they are advertising the risk of being caught being dishonest in their business.

This meeting is for retailers, producers and academics only