The retail industry isn’t just about the stock on a store’s shelf - the industry relies heavily on its employees to function and deliver service to its customers. Risk management within the industry is largely focused on mitigating shoplifting, which costs the New Zealand economy $1.3 billion* each year. While it is important to ensure your bottom line is in the black, retail owners should not forget about the effects of crime on their employees - especially during the busy period leading up to Christmas
Robbery is described as “stealing or taking anything of value by force, violence or threat”. It’s fortunate that incidences of robbery in New Zealand are relatively low, however the victims of robberies are at a real risk of suffering physical harm and/or psychological distress. If a robbery occurs, your affected staff member could potentially be unfit for work for a number of weeks.
A small business with few staff members could be severely disrupted if an employee can’t return to work for a number of weeks. In turn, this can cause excess stress on the remaining employees and potentially affect the store’s operation or sales. Retailers should consider a risk management plan that will reduce the chances of their staff becoming victims of robbery.
Look at the circumstances in which your business trades - some businesses are more at risk of robbery than others. If your store trades at night, is located in an area that is considered ‘high risk,’ or holds cash on the premises, your risk management plan may need to be more robust and extensive.
There are measures that can be implemented to reduce the risk of robbery that don’t require a huge amount of capital investment:
· Consider forming a neighbourhood 'business watch' system with other nearby businesses. A simple phone tree where retailers can quickly alert each other of suspicious activity can be easily implemented.
· Review your store’s cash policy. Set a limit of how much cash should be kept in a register at any one time and have staff regularly move excess cash to a store safe or strong room.
· Improve the lighting in your store. This doesn’t necessarily require expensive electrical work; try switching your bulbs to a higher wattage, painting walls a light colour to reflect light or moving merchandise that is obstructing light.
Retailers can also use store design or layout to make it harder for robbers, such as:
· Installing deadlocks and fitting alarm systems,
· Installing security screens to reduce the opportunity for physical contact with staff,
· Fitting a coded lock to restrict public access to staff only areas,
· Fitting electronic sensors that beep when customers enter or leave the store,
· Keeping exits clear and visible to staff to stop thieves concealing items.
The most important step to take is ensuring that your employees are equipped with the tools and knowledge needed to reduce the risk of becoming a victim of retail crime. Implement sound security procedures that remove opportunities for criminals, give training that empowers employees to react appropriately to retail crime, and remind your staff that their safety and lives are more important than cash or merchandise.