As retailers begin to re-open stores during the COVID-19 pandemic, every aspect of brick-and-mortar retail will need to be re-examined. By knowing what to expect, you can jump into #RetailRecovery assured that your stores, and profits, are protected.
EXPECTATION: Employee theft, fraud, and error will increase.
- Efforts to be diligent on the register will be diminished.
- New fraud techniques may be learned. Bad actor demand.
- Need for cash.
- Inadequate background checking during mass hires.
- Sweethearting – willingness to collude with others.
- The “new normal” will lead to new fraud scenarios.
Internal loss can be managed, identified, and stopped. You have been using exception-based reporting (EBR) systems for years. This may require:
- The ability to quickly evaluate new processes and/or update thresholds. Maybe even create new queries.
- Returning to your earliest queries to find basic situations because you are dealing with a reset in store operations.
- A renewed diligence in coaching your cashiers.
Improperly addressing exceptions can quickly lead to increases in loss and shrink. New retail routines introduced new opportunities for loss, including:
- Fraudulent wastage.
- BORIS/BOPIS fraud.
- Delayed handling of returned merchandise due to policy or sanitation issues.
- Sweethearting/Robin Hood syndrome.
HOW CAN I GENERATE REVENUE?
- Minimize sales reducing activities (SRAs) and improve revenue preservation.
- Immediately address cashier errors to reduce loss and increase customer satisfaction.
WHAT CAN I CHANGE?
- Use analytics to find and focus on the highest value cases.
- Use AI to close cases faster.
- Discern intentional fraud from errors.
- Clear old exceptions and look for new patterns.
- Review that BORIS/BOPIS and return merchandise are being handled properly.
- Evaluate loopholes in new processes and create queries to quickly identify fraud.
WHO CAN HELP?
When you re-open, partnerships matter.
- Vendors have a broader view of the marketplace—ask for insights.
- Plan your next moves with financially strong partners, like Appriss, who have previously managed downturns.
- Look for partners with the stability of a large, diverse client base.
- We’re here to help if you want to talk about internal loss.