Abstract:
Retail chain outlets - commonly referred to as supermarkets in Kenya, have rapidly expanded. This expansion has also rapidly raised cases of shoplifting as a significant cause of inventory shrinkage, where many of these supermarkets are consequently losing millions of shillings. For these supermarkets to combat this threat and control losses due to shoplifting, they have implemented a raft of system controls. This study examined the different system controls that are in place to prevent shoplifting and their effectiveness in countering it, amongst supermarkets in Nairobi. It sought to identify specific or combination of system controls used in different supermarkets and their effectiveness. The study focused on each system control’s effectiveness in detecting, deterring and preventing shoplifting upon implementation. The study adopted a descriptive research design with the target population being 49 branches of 4 major supermarkets located in Nairobi. Primary data was collected using self-administered questionnaires. The data gathered using the questionnaires was analyzed using SPSS. The study had a 96% response rate. Descriptive statistics were used to present the frequency information of the data. The study found that there is a strong positive relationship between System controls and Effectiveness in countering shoplifting in supermarkets. Supermarkets are using various system controls to prevent shoplifting. To some of the supermarkets the chosen control was effective but to others, the controls were not effective. The use of system controls is also not widely being used, as the costs associated with the controls act as a deterrent. The study has further recommended areas for which further studies can be carried out. The use of system controls is very effective in detecting and deterring, though expensive to implement. In conclusion, the study observed that there is evidence that system controls are effective in the
detection of shoplifting before the users leave premises and thus effective in reducing losses incurred through shoplifting. Supermarkets should employ more of this control as it deters theft by detection before the goods are removed from the supermarkets. Policy makers should get involved and implement laws to punish people who shoplift. Rebates or tax waivers should also be enacted to make system controls more affordable for supermarket.
