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: Shoplifting and other external theft will increase.
WHY?
- Pent up bad actor demand, other fraud revenue streams reduced during quarantine.
- New negative behavior, desperate unemployed consumers.
- Shoplifted items will often be immediately returned to convert merchandise to cash or store credit.
- Friendly Fraud – false claims of missing delivery orders.
OPPORTUNITY
Shoplifting monetization at the return desk needs to be prevented.
- Inability for bad actors to obtain refunds will deter shoplifting from your organization.
RISK
Return requirements to stop shoplifting may impact good consumers. And other external loss factors will also arise:
- Organized retail crime growth.
- Increase in fraudulent receipts.
- Increase in first-time return fraud.
- Increased employee collusion.
HOW CAN I GENERATE REVENUE?
Reducing external theft will:
- Improve merchandise availability for good sales.
- Deliver better customer service to good returners.
- Decrease the in-store presence of bad actors.
- Increased on-hand accuracy for in-store fulfillments.
WHAT CAN I CHANGE?
- Detect and deter return fraud and abuse.
- Manage non-receipted returns and time frames.
- Identify and track employee collusion.
- Mitigate return and ORC risks.
- Find patterns in delivery claims.
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 external loss.