bottlenecks to organized retail in india, corporate misgovernance, frauds in indian retail, lilliput, management fraud, problems in growth of indian retail, reebok scam, scam by top management, scams in retail industry in india, subhiksha, vishal retail
This presentation details recent frauds in the Indian retail Industry. It discusses the perpetrators of such fraud (customers, employees and top management) and stages in the value chain most susceptible to fraud (Property acquisition, merchandise sourcing, third party vendors, accounting books).
As the Indian retail industry matures, the fight to reduce shrinkage to global levels has begun in earnest. Some of the bigger names already boast of shrinkages as low as 0.7 per cent or even lower. At Globus, the shrinkage is currently pegged at 0.69 per cent of the total sales of Rs 235 crore, says Nadkarni. According to him, the number — in the last three years — has come down from 0.7 due to improved security solutions in the country. The other factors that can check pilferage is investment in the right resources and having an effective management. “We are aiming to bring shrinkage to below 0.6 per cent this year; however, we (retailers) can never ever eradicate the problem from the system,” says Nadkarni.At Max Fashion, the Rs 400-crore company of the Landmark Group, the management claims pilferage numbers have been strictly controlled. “In our group, it is typically below 0.4 per cent, whereas, globally, in the organised retail industry, it is about 1.5 per cent,” says Vasanth Kumar, executive director of Max Fashion. He says pilferage was controlled through security guards, sensormatic security hard tags (AM technology) and billing controls. Of late, with advancements in technology, established retailers have introduced “on the shop floor” controls and monitoring or restricting inventory movements, general surveillance (CCTV), electronic recording of movements on the shop floor, RF technology security tags (both hard and soft tags) and perpetual stock cycle count.’