Five effective retail risk management strategies
From luxury retail security in London to making the most of an independent retail outlet, here are five crucial retail risk management strategies.
Luxury retail security may have the most rigorous requirements, but every retail business needs to consider ways of managing risk. Whether you manage a high street store in London or the smallest of retail premises in an out-of-the-way village, retail risk management should be a major cause for concern. So we’ve put together five key strategies to help you manage those risks.
- Customer slips, trips and falls
We live in a culture that seeks financial redress for every accident, so minimising the risk of trips, slips and falls is absolutely essential. Snow and ice are a particular hazard, but slippery floors, wet patches and uneven flooring are issues that can occur at any time of the year. But it’s not enough to simply have safety policies in place. Every member of staff needs to undergo appropriate training so they know what to do to spot and eliminate risks as they arise.
- Theft
Several million pounds worth of stock leaves retail premises every year without having been paid for. Spotting suspicious behaviour in potential shoplifters is an art in itself, with specific requirements in some markets (see below for more details). Limit potential for theft by installing CCTV equipment and / or security tags on higher-value goods that sound an alarm when they leave the store. And once again, staff training goes a long way towards helping retail shrinkage, so schedule in regular sessions to keep their skills up to date.
- Cyber crime
If your business involves storing customer data in a digital format then it’s open to a potential attack by cyber-criminals. And it’s not just your customers’ data, including credit card and bank details, that they’re after. Your website could be the subject of a Denial of Service attack, making you instantly inaccessible to an online audience and damaging your brand credibility at the very least. It’s well worth asking for professional help to make sure your business is fully compliant with all current data protection requirements. Failure to comply could cost you a hefty fine and even the closure of your business, so it’s not worth taking chances with.
- Managing forced closures
If 2020 has taught the retail sector anything, it’s how fragile the markets can become with very little warning. Nobody could have predicted Covid-19, but the most successful retailers used forced closures as an opportunity to innovate and diversify. An online presence has proved to be essential for any business wanting to thrive and grow in the current climate, so if you don’t already have one, now is definitely the time to create or commission one.
5. Keeping up with the competition
You started your business because you’re good at what you do, and you spotted a gap in the market. But what worked for you back then won’t necessarily keep working for you now. And as we’ve seen from the preceding point, unexpected closures in 2020 left thousands of retailers on their knees, while others managed to survive and even thrive. So keep an eye on your competitors and note any changes they’re making and the results they’re seeing from those changes. It’s a great way of keeping an eye on your target audience too, noting changes in their buying habits or other important trends.
Managing luxury retail security in London
There’s an emphasis on luxury retail security in London simply because so many tourists flock there. But any shopping destination offering luxury goods requires some sort of visible security presence. Most companies specialising in luxury retail security in London will also supply highly-trained security personnel throughout the UK, and even further afield if necessary.
The key takeaway is never to think that your retail risk management strategy is complete. This is an aspect of your business that needs to undergo regular reviews in order to provide the level of security that you require. Failure to keep your strategy completely up-to-date could negatively impact your business, so don’t leave anything to chance. Make a point of overhauling your strategies at least every six months, making any necessary changes to keep them up to speed and fit for purpose.