With annual retail shrink averaging 1.59% of net sales, according to the University of Florida’s 2006 National Retail Security Survey – a figure that adds up to $40.5 billion for the retail industry – it is no wonder that loss prevention is a high priority. Though investments in loss prevention programs are essential, the ultimate success of the programs is dependent upon the individuals managing and implementing them. A cohesive team that addresses the same loss prevention priorities, maintains regular communication on key issues, and receives adequate guidance and training is more likely to achieve the desired goals. However, a research study conducted by Protiviti shows definitively that senior corporate leadership and loss prevention management personnel are not always on the same page with regard to loss prevention, and that retailers have work ahead of them as they strive to align these two groups.
In the third quarter of 2007, Protiviti conducted separate surveys of 1) senior-level retail executives, and
2) loss prevention management, to provide benchmarks by which loss prevention departments can measure their current skills and knowledge and identify gaps to be addressed. This whitepaper provides a high-level overview of some of the key findings from this survey, including a notable disparity in the responses of executives and loss prevention management, especially in the areas of loss prevention strategy, internal theft, keeping current on industry trends and internal marketing of loss prevention.
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