Internal Loss Case Study

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Internal loss prevention techniques 9.19. How to improve internal loss by building a positive employer-employee relationship? To create a sense of honesty and loyalty to the organization in all employees helps to prevent theft. Many store managers are reluctant to tackle internal security problems because they feel that it will create poor employee relations. Nevertheless, the honestly employees will not be outraged by efforts to curb dishonesty. Thus, an alert store manager will have definite personnel policies, such as: 1. To inform all store employees of an active internal loss prevention program. 2. The employers need to have screening and reference check policies on all new employees carefully before employ them. 3. To inform and urging …show more content…

For internal loss in the store, the criminal is a dishonesty employee, the victim is the business, and the opportunity is as large as the owner is or manager will permit. Thus, all managers and employees have a responsibility to prevent, detect, and control these needless expenses. 9.20. Why store layout, design, and visual merchandising is so important in a store? Many retailers are finding it increasingly difficult to create differential strategies, such as merchandise, pricing, and marketing for market differentiation. Thus, retailers must create an exciting store design with innovative merchandising strategy that makes people want to go shopping. There are three objectives that retailers must consider when designing or redesigning a store. They can summarize as follows: 1. The store’s design must be consistent with the store’s image and overall strategy to create an atmosphere that customers want to shop. 2. The store design must be able to influence customers’ buying decisions and able to buy more by the customers. 3. The retailers must take into consideration the fixed costs associated with the initial design as well as reoccurring costs when making design …show more content…

The store layout has an important influence on sales, since it indicates where the various merchandise activities are handling and where fixtures, furnishings, and equipments are located. Developing a good store layout, store designers must balance different objectives that often conflict. The first objective of the store layout should entice customers to move around the store to buy more merchandise than they may have originally planned. Another way of helping customer move through the store is to provide variety. A store designer can satisfy the customers with multilevel and ramps and add variety besides flat spaces filled with long rows of racks and shelves only. For example, the display can be varied to avoid monotonous presentation if the floor must be flat to facilitate the use of shopping carts. The second objective of a good layout is to provide a balance between giving customers adequate space to shop comfortably and displaying of merchandise effectively. A store with ample space will attract many more customers to shop and ultimately to create a sense of excitement and, resulting increase buying by the customers. A store with too many racks and displays will cause customers to be confused or even

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