What is a primary strategy to minimize inventory shrinkage in retail?

Investing in surveillance is a crucial strategy for minimizing inventory shrinkage in retail. Surveillance systems, such as video cameras or electronic monitoring, serve as a deterrent against theft and dishonest behavior by both employees and customers. When individuals are aware that they are being monitored, they are less likely to engage in activities that could lead to inventory loss.

Beyond acting as a deterrent, surveillance systems also provide valuable evidence in the event of theft or loss, facilitating investigations and helping retailers address vulnerabilities in their operations. This investment not only helps in protecting the physical inventory but also can contribute to a more secure shopping environment, thereby enhancing customer trust and overall retail performance.

While options like implementing relaxed return policies, increasing store hours, or offering more discounts might influence customer behavior or sales, they do not directly address the root causes of inventory shrinkage, which often stem from theft and loss prevention. Therefore, the focus on surveillance aligns most directly with effective strategies for minimizing shrinkage in retail settings.