Retail Risks in the Turbulent 1990s

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WHEN EXAMINING risks in the world around us, a seemingly unlikely cause for alarm is the local retail establishment. Going shopping is hardly perceived as a dangerous activity - by customers at least. Retail risk managers, however, can name a plethora of reasons why the opposite can be true. Slips and falls in the aisles, incorrectly stored merchandise, hurricanes, riots and even overzealous security guards are all dangers in retail risk management, a topic discussed at a recent College of Insurance seminar.

The retail environment is undergoing radical change; gone are the days of corner stores and even single outlet stores. The retail industry today comprises the superstore or conglomerate with many outlets in many countries. The fact that so many customers enter the store every day creates a huge liability. Since retail is a people-oriented and customer-service driven industry, not only must the customer always be right, but he or she must also be safe.

Retail risk managers must ensure not only the basic safety of stores, but also that all stores and outlets are in compliance with the Americans with Disabilities Act, that security personnel are trained in how to handle suspected shoplifters, and that the customers and employees are not in any danger in the event of a disaster. Of course, more so than any other industry, retail establishments must remain …