Retail Loss Prevention
Ace Hardware's partner in reducing shrinkage and improving the bottom line
Upcoming
Who We Are
Ace Hardware Retail Loss Prevention (RLP), previously Loss Prevention Services, Inc., along with our preferred vendor-partners, has been providing a one-stop-shop resource for Ace retailers’ loss prevention needs for over 15 years.
While there are certain loss prevention precepts, principles and policies that are appropriate in any retail setting, there also are those that are unique to the hardware market and, yes, even unique to Ace Hardware stores. It is our focused expertise and performance that has prompted Ace retailers across the country to attest to the value of our services and the positive impact they have had on their bottom line profits.
The Truth About Shrinkage
Simply stated, it’s money in your pocket! Your retail inventory shrinkage is a report card of the success (or failure) of your efforts to keep losses to a minimum. Shrinkage is measured both in dollars and as a percentage of retail sales. The national retail inventory shrinkage average is 1.5% of retail sales (2008 National Retail Security Survey). However, the average Ace Hardware store inventory shrinkage is double that figure (3%), based on a survey of Ace retailers a few years ago. Thus, a store with annual sales of $2M is losing $60,000 a year! Just a 25% improvement of that figure (which is absolutely possible) would equate to an additional $15,000 on your bottom line. And that’s without any additional sales! The causes of shrinkage (essentially theft and error) are broken down in this chart. As you can see, over 80% of your shrinkage is due to theft by associates (43%), customers (36%) and vendors (3%). |
Keeping losses to a minimum, like anything worthwhile, takes work. It starts with a realistic, cost-effective and enforced set of internal controls - internal controls that address everything from POS operations to trash removal, perimeter and internal access controls, and general physical security. Once an assessment of store operations and conditions that inherently involve a risk of loss has been made, it is then a matter of making informed and practical decisions as to what must be changed in order to eliminate or reduce the identified shortcomings. This process must have the support and participation of your entire team - and that means training, motivating and guiding your associates to support you in your efforts, with an understanding that doing so not only benefits the company, but also themselves.
This web site contains information and guidance to assist you in this task. Contact us for more detailed information on the services available. Take a proactive approach and don’t wait until you have a loss to address basic internal controls. If you have a current situation at your store that you know needs to be addressed, but are unsure how to proceed, we can provide expert guidance and, if needed, on-site assistance to resolve any loss prevention related problem.