Retail losses are considered any-and-all negative interferences on the company’s results, which have a consequence of profit reduction. The concept of loss prevention on the retail market is not new, and medium and large groups have considerable teams towards mitigating them, being avoiding small thefts, robbery of high valued equipment, consumption inside the property, the products shelf life expiration, improving maintenance of refrigerated equipment, amongst others.
Considering the highly competitive markets and cost reduction factors, the loss prevention concept has been broadened and, in order to accomplish savings in other areas, such as obtaining better insurance rates, new methods to avoid losses have been established. Based on this, many groups have implemented a Risk Management Department, with the primary goal of identifying all internal and external risks to which the companies may be exposed. Fire hazards, flood, windstorms, amongst others, may severely affect the operations of these groups if they are not well managed, which, in addition to the losses of insurance deductibles, may substantially increase insurance rates to the entire group.
Unfortunately, news regarding fires on retail locations are often shown on newspapers. A preventive attitude towards risk management certainly can avoid tangible and intangible losses. Prevention of any risks and losses starts very early in the development of a new design / project, with the review of layout and construction materials, commodities distribution plan, electrical installations, fire protection, expansion plans, etc. When these aspects are taken into consideration and a correct classification of the hazard is accomplished still during the design phase, appropriate decisions are taken regarding property loss prevention, such as fire, generating cost reduction for the years of operation. Other critical factors for the proper operation of fire protection systems, as any other prevention systems, are the personnel training and maintenance.
It is frequently observed that the retail industry has challenges in implementing all concepts of a proper Risk Management strategy. It is critical that retail companies facing adverse situations be prepared to safely control the event, since, most of the times, clients’ panic may make more victims than the event itself, as well as a long business interruption may result after a loss; these consequences will have significant negative impact to the company’s image. Pelacani Risk Management and Engineering have profound knowledge of the most significant risks affecting the retail locations and, therefore, has integrated solutions to better manage risks and reduce costs in the short and long term.
