Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/485350
72 Beverage Dynamics • March/April 2015 www.beveragedynamics.com B everage retailers are joining the throngs of businesses who have security and loss prevention at the top of their "to improve list." Shrinkage, robbery and theft all eat away at the bottom line of most retailers' profi tability and must be addressed. The decision to investigate and purchase the latest security devices illustrates the growing deter- mination of business owners to address head-on the safety concerns of their employees and customers and the security of their bottom line. A CONSTANT ISSUE Employee theft in retail is a very real and signifi cant threat at all levels, regardless of the industry. According to Steve Sell, director of marketing, retail at Tyco Integrated Security, in annual surveys, overall "shrink" exceeds $35 billion. More than 44 percent of that fi gure can be attributed to 'internal employee theft,' according to respondents. For Steve Carpentier, general manager at Bottle King in New Jersey, theft by employees and customers is always a concern. "Theft of spirits, champagne and high-end wines are prevalent among customers and employees," Carpentier says. "For the customers, most of the stolen goods are items that have street value and are easy to sell, including champagne, scotch and cognac. We have fourteen locations. Only one is in an area where there is more concern of external theft." Carpentier says inventory by far is more prone to theft as thieves have more access to inventory then cash. Regardless, in his fourteen locations, Carpentier relies on the count- ing out of drawers after every shift and he has invested in good camera video systems to help deter theft. "In our business, the solutions we deliver to retail are most often focused on the prevention or deterrence of product theft and we look to help retailers identify high-risk items and put into place measures which mitigate the occurrence of theft," Sell says. Technology like video surveillance, electronic article surveillance (EAS) and sensors at- BY MAURA KELLER Are you up to date on the latest security technology, procedures and trends? Securing Your Assets B tached to products are the most common used. While not specifi cally focused on cash management, the video systems are often placed in a way that retailers can offer "overt strategies" for deterrence at point-of-sale (POS) and in places where cash and valuables are handled. "Having a good surveillance system helps," Carpentier says. "It may not catch a theft in progress, but it can show the thief when someone reviews the video looking for a miss- ing item. Our management team then posts a picture so the entire crew is aware when he or she returns. If a thief is successful the fi rst time, you can be certain they will come back and try to steal again." Bottle King offers a reward to employees for catching both a customer and a fellow employee stealing. CONTROLLING INVENTORY There are many dimensions when it comes to understanding inventory accuracy and managing internal shrinkage. As Sell ex- plains, the difference between "counted inventory and subsequent cycle counting, minus sales" gives a retailer a sense of what should be in inventory and the difference is generally viewed as shrink. "It's unaccounted based on known sales fi gures and the shortage is shrink," Sell says. "Accounted for is loss due to theft, dam- The model VSX-2MP-MVD4 camera made by 3xLogic. "In annual surveys, overall 'shrink' exceeds $35 billion. More than 44 percent of that fi gure can be attributed to 'internal employee theft,' according to respondents." — Steve Sell, Director of Marketing, Tyco Integrated Security