Retail cash loss – Addressing the problem with intelligent technology
One of the major shrink related issues faced by retailers
Any business that accepts cash for transactions has come to expect that some percentage of it will vanish as a result of fraud, administrative errors and employee misdeeds.
Inventory shrink, which includes cash loss, costs retailers an estimated 47 billion dollars annually. It is so prevalent that retailers have a line item for it in their P&L statement.
Retailers can no longer simply shrug off cash loss, even if it has reached the “cost of doing business” status. Like any cost, it has to be addressed and – if possible – reduced. Individual retailers tend to downplay shrink for fear it creates a negative image, but the industry makes a concerted effort to measure shrink and address cash loss by trying to reduce internal theft.
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Indeed, retailers can substantially eliminate their cash loss with the right technology at the checkout. For instance, intelligent cash management solutions provide an affordable approach to prevent loss. There are several reasons for cash loss, for example employee theft, administrative errors, fraud or shoplifting.
Using technology to tackle theft and mistakes at the POS will not totally eradicate shrink for retailers, considering administrative errors and inventory shrink caused by fraudulent actions also contribute to the problem. However, technology that makes cash handling transparent and more accurate is instrumental in reducing cash loss, as much as 90 percent.
Preventing cash loss at the POS comes down to a combination of people and systems. A retailer needs honest cashiers, attentive managers and systems that keep everyone honest who is involved in cash handling.
Find detailed reasons for cash loss, an analysis and tips for loss prevention and five best practices in APG#s whitepaper ‘Retail cash loss – Addressing the problem with intelligent technology’.