Since 1994, Ace Hardware Corporation has recognized the value in offering as retail loss prevention resource for retailers with the single mission of providing loss prevention services and products for the purposes of reducing shrinkage. Throughout the years, Retail Loss Prevention has learned about the unique qualities of an Ace hardware store, and how the vulnerabilities that these stores are susceptible to can contributed to an unstable and weakened bottom line. We have developed best practices, training, in-store controls and procedures, and have gathered numerous case studies that can all be used by todays retailers as they strive to create a save, profitable, loss free retail environment.
Today, Retail Loss Prevention has assumed a more strategic role. In 2010, Retail Loss Prevention became an internal partner of the corporation; part of the Property/Loss Prevention corporate department. As a proactive business partner, Retail Loss Prevention is increasing the tools and resources available to all retailers and actively working to make those tools accessible, affordable, and meaningful for every retail partner! We believe that by providing every retailer with the tools to decrease their shrinkage, we can contribute to the overall bottom-line and profitability of each store and the brand!
Why is SHRINKAGE REDUCTION important?
Your store shrinkage is made up of the difference between what your computer says your inventory is and what your physical inventory actually is (found by completing a cycle count). In the hardware industry, the national average for single store shrinkage is 1.7% (2007, Hollinger, University of Florida). The average Ace Hardware Retailer is just shy of double that at 3%. If your store is a 2M store, this equates to $60,000 in shrinkage, annually! If you could reduce your shrinkage by even ½, that is another $30,000 to add directly back to you bottom line each year.
What accounts for my shrinkage?
There are only 2 factors that contribute to shrinkage-error and theft. The main places that these losses come from are associate dishonesty (45%), administrative errors (33%), shoplifting (17%), and vendor theft (2%). The remaining 3% is unknown source of losses.
How can I reduce my shrinkage?
Internal controls are the root to reducing your stores shrinkage rate. The easiest way to begin addressing your problem is to implement internal controls relevant to your associates. Create a zero tolerance policy, communicate it, and enforce it consistently. Contact us for more information about an specific policy or control question, or to get information on internal best practices that you can implement on your own!