Outsourced LP Solution Reduces Shrink

Used with permission from Integrated Solutions for Retailers magazine

A retailer cut internal LP (loss prevention) travel expenses and reduced overall shrink 50% the first year after outsourcing.

As your retail chain and/or stores grow, so does your exposure to loss. Attempting to manage that increased exposure with few or nonexistent resources can be tough. After you realize assistance is vital, ask yourself if you should create an internal LP infrastructure or if you should consider outsourcing the task. One retailer that recently decided to outsource its LP program is Yankee Candle Company, Inc.

The 37-year-old Yankee Candle Company designs and manufactures scented candles, then acts as a wholesaler and retailer. It sells products through a North American customer network of approximately 17,400 store locations and a growing base of company-owned-and-operated retail stores (420 locations, including 16 stores under the Illumination name). Additionally, the retailer sells products through direct mail catalogs and its Web sites. Considering approximately 14 years ago the retailer had only 11 stores, its exponential growth required the company to reevaluate its approach to LP.