Unfortunately, that’s a question asked all too often by retailers both large and small. Cash and inventory that should be there, aren’t. And no one can seem to explain why.
For example, a leading retailer with over 50 stores in both Australia and New Zealand’s International and Domestic Airport terminals had a significant revenue problem. They could not match up daily cash receipts to store inventory. While some of this mismatch could possibly be attributed to shoplifting, they felt something else was going on, especially since they had put strong inventory control measures in place.
Among their 50 plus stores they have 12 store concepts including: News, Travel Aids, Apparel, and Souvenir and Gift stores, the typical types of stores you see at most larger airports. Their extensive product offering from over 200 leading and independent suppliers helps them provide a diverse range of products for every type of traveler at any price point in any location.
Our customer suspected that some of its cashiers were possibly pocketing a portion of the cash tendered to them. Inventory analysis indicated that product was disappearing in spite of the latest technology being used to prevent shoplifting. They could not use traditional retail investigative methods as it would have been sensitive and costly to isolate and identify the culprits. Also, given the size of their stores, it would have been very intrusive, defeating the investigative effectiveness. To do this investigation our customer turned to Halo’s Cash Alert!
Cash Alert! uses Point-of-Sale (POS) data from all of their stores. This data was analysed to find operators, branches and/or personnel shifts with consistently lower cash sales than average. The suspect operators’ data was analysed against average cash sales among comparable operators, branches and/or shifts. Trend lines and standard deviations were used as additional tools to rule out natural volatility present in the POS data. Once the short list of suspects had been filtered out, it was a fairly straightforward job to get firm evidence to resolve the problem.
The calculated losses due to dishonest cashiers was significant, approximately $8,000 per month. The retailer derived a ROI with Halo Cash Alert! in less than nine months. Our customer uses Cash Alert! continuously to pre-empt and quash any further dubious activity.
Cash Alert! is designed to quickly identify patterns in POS cash transactions that can be indicative of employee theft or misuse. Using Halo’s cloud capabilities, Cash Alert! requires only a simple data file from one table in a point-of-sale system. In most cases, this kind of data can be extracted in minutes by a manager. Cash Alert! then summarizes the data and creates comparisons across employees, time periods and work shifts. Exceptions indicative of potential cash loss problems are highlighted for management action. Try Cash Alert! for yourself for free and see the power of analytics made easy.