Caught A Shoplifter? Now What? To Prosecute Or Not

March 31, 2019 by Leave a Comment

Do you go fishing? Have you ever caught a fish and had to decide if you were going to keep it or not? Sometimes there are limits to the number of a certain breed of fish you can catch and keep in a day. There are also size limits that are imposed on certain species, for example; a Large Mouth Bass might have to be fourteen inches long or longer in order to keep it in South Carolina. There are even seasons when certain fish cannot be kept if caught. As an example in Texas, according to texas.gov, Red Snapper season in federal waters closed on August 22 in 2018. In some situations where you can keep fish but only certain quantities you may have to decide if you are going to catch and release and keep the larger fish or take a chance and just reach your limit for the day. Shoplifting can be somewhat the same. You were wondering how fishing was going to tie in to Retail Loss Prevention weren’t you? 

     Now I am not talking about catch and release because a shoplifter does not fit the right height and weight limits. I am talking about whether a store management team makes a decision if they are going to prosecute shoplifters if they are caught period. Some store managers make a decision not to prosecute anyone for theft. The reasons are varied but may include the potential danger involved with stopping a crook or the risk of making a stop and the suspect does not have any merchandise (or says they do not and makes the manager question the decision to stop).  Sometimes the decision not to prosecute rests on a dollar amount. A shoplifter might be stopped for an item under $20 but will not be prosecuted for that particular theft. Let’s explore why such decisions are made.

     One of the major reasons for not prosecuting shoplifters, especially when the value of the item falls under a specific price point is that the amount of time spent on the case far exceeds what the value of the item was in the first place. If you choose to stop a shoplifter you will want the manager to write up some kind of report of the incident. In Loss Prevention we have incident reports to complete. There is also the time spent by the manager waiting with the shoplifter in an office for the police to show up. Depending on the jurisdiction police may issue a citation to appear in court for the alleged crime or they may take the suspect into custody. Follow all of this up with time spent in court prosecuting the case. By the time all is said and done a prosecuted case can be more costly to the merchant than just recovering the product and letting the suspect go.

     Before you think that you have made up your mind on the direction you are going to take I would like you to think about the other perspective on this subject. Why would you decide to prosecute a shoplifting case? If you catch and detain someone, decide to release the suspect and they get into an accident you could potentially be held responsible. That is unlikely but has to be taken into consideration. If the suspect is a juvenile and you detain them you absolutely cannot release them on their own. Yes, you could choose to release them to a parent or guardian but there may be reasons it would be better to contact the police. I have seen my share of irate parents and later wished I had released the child to authorities.

     While it may not seem like an important reason for you to prosecute a shoplifter I would ask you to consider one more thing. Each time a shoplifter gets caught, cries and gets cut loose with a promise not to steal again it is another crime that there is no record of being committed. Prosecuting a thief may not make a significant difference to you but in the big picture a shoplifter with no official police record is a shoplifter with a clean record. That minimizes any penalty they may get when they are finally caught and prosecuted. Shoplifters who get away with their crimes continue to hurt retailers until they do get caught and prosecuted. 

     Catch and release when fishing may or may not be your choice. Prosecuting a shoplifter or not is up to you. Safety, efficiency, productivity and ramifications must all be taken into consideration. Ultimately the choice is up to the store owner. Just remember, whatever you decide to do be consistent and be fair with everyone you deal with.

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Building Structure And Design To Discourage Theft

March 31, 2019 by Leave a Comment

When stores are put together it is usually designed with appearance and functionality in mind. What you may not have thought about is how the structure and layout of a store might be helpful in discouraging shoplifting and other crimes. Have you ever paid attention to the gas station store layouts? Often the cashier island is in the center of the building and raised higher than the rest of the store. Low fixtures allow almost complete visibility of all areas of the store. It may not seem too important but if you have worked in Loss Prevention you know that this is an intentional design that helps reduce theft. By placing the employees higher they can see over customer’s heads and view what is happening in more parts of the store. Shorter gondola shelving may hamper how much merchandise can be displayed but by the same token visibility is enhanced. Those hiding places that shoplifters tend to congregate to become much harder to find.  

     It is important for store owners to keep theft in mind as they are planning how they are going to design their stores. Here are some additional ideas that you can consider as you build a store or perhaps redesign an existing one: 

  • Corral areas where high theft items are stocked. Corralling is the use of gondolas and cash register stands to create an enclosed department. There is only one way in and out and that requires passing the register. This design gives the managers a lot of control over the area and makes theft much more difficult. The drawback to a corralled department is that an employee has to always be dedicated to the department. That means it becomes a payroll expense. Many large chains that were utilizing this concept have moved away from it due in part to the cost of running it. It also ties down an employee who could otherwise help in other areas. 
  • Bright lighting throughout the store is important. Criminals seek shadows and darkness to cover their activity especially dark corners. Make these areas uninviting to crooks. Ensure you have lighting that hits every part of the store. This should include your stockrooms as well. Shoplifters are not the only criminals that will take advantage of your building, dishonest employees will too. 
  • For fire exit doors ensure the egress bars are set up with delays. Frequently shoplifters will fill up a shopping cart or bag with merchandise and hit a fire door with a getaway car parked right outside. A thief doesn’t want anything that will delay their exit from a building. A delay on a fire exit doesn’t have to be a long one but it does activate the door alarm when the egress bar is pushed. This alerts employees that a fire door is about to open and if someone is nearby they can respond to it quickly. A sign is required to be placed on the door or the bar alerting people that the door does have a delay. This can discourage many potential grab and run shoplifting incidents. 
  • Bollards or decorative barriers such as cement planters set up at the edge of the sidewalk outside of the front door(s) are an important feature. The use of such barriers discourage a vehicle being from driven through the entrance in a crash and run theft. 
  • Electronic article surveillance towers at all entrance and exit doors are a powerful deterrent to theft. Shoplifters become aware that anti-theft measures are in place as soon as they walk into the store. Using towers at employee accessible doors discourages associates from stealing from the workplace. A word of caution, don’t set up dummy towers and think you will achieve the same results. Criminals will figure out what is going on. Use Sensormatic equipment and Sensormatic tags and labels to get the real protection your store needs. 
  • Have counterfeit bill scanners and cash drop boxes at each register. Cashiers can scan all $20, $50 and $100 bills to prevent fraud. The drop box is used to remove the threat potential of short change artists, till tappers and even robberies. 
  • Finally, though they may seem expensive a few strategically placed cameras and Public View monitors can aid your managers in moving thieves out of hard to see locations.  

Store design has a direct influence on theft and crime. Putting barriers up that will hinder crime and eliminating those obstacles that prevent your team from seeing your customers can improve the security of your building. Remove crime and you make your store safer while also making a positive impact on profits.                                                

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Vendor Theft: Causes, Effects and Prevention

March 31, 2019 by Leave a Comment

Having worked in retail for nearly thirty years I have found that more people work in the store than just the people directly employed by the store. My encounters have included working with various external vendors. I have worked with representatives for jewelry and accessory servicing, cosmetic reps, snack vendors and even cleaning vendors. I have checked in soft drink vendors and food vendors through our loading dock receiving procedures. Just like our store employees, the vast majority of vendors who service stores are honest and work hard to satisfy their clients. Unfortunately, just as there are in stores there are bad apples for vendors and they can cause shortage in stores through theft, fraud and even paperwork errors.  

     The good news for retailers is that in the big scheme of things vendor theft generally accounts for the smallest amount of shortage. According to the National Retail Federation 2018 National Retail Security Survey, vendor fraud or error accounted for 5.4% of retail shrinkage in 2017 (pg. 5). That said it is still a source of shortage that can be controlled thereby saving stores potentially thousands of dollars a year.  

     So how does vendor theft and fraud happen? Just like any other theft it requires the person committing the crime to have the opportunity to steal, the means to steal an item and the perceived risk of being caught or punished. Just like a three-legged stool, remove one leg and the whole thing falls over. You cannot control whether or not someone has a desire to steal but you do have control over the conditions that make theft appealing.  

     Depending on what the vendor is doing in the store can impact how they might steal from you. Having controls in place in the store and requiring vendors to follow those procedures or controls can influence whether that person decides to attempt to steal. For example, many stores have vendor log books and vendors are expected to sign in when they enter the store. They may even be issued temporary name badges once they sign in. When someone has to register when they enter a building there is a sense of accountability, anonymity is lost.  

     The type of vendor can also play a part in how theft or fraud transpires. I have seen cosmetic vendors in stores with large satchel purses and bags. Their paperwork and checklists are stored in the bags but they also make great hiding places to conceal merchandise if they are stealing. A store should have the same requirements for vendors as they have for their own employees. A vendor should be required to have their bags or packages checked before they leave following a visit.  

     A food or beverage vendor may have empty boxes broken down that they are carting out for reuse. An employee of the store should be inspecting between the boxes to ensure no merchandise has been concealed between the layers. A vendor should also never be throwing out their own trash. Store compactors should always be locked and only a manager or store owner should have access to it. The manager should be the one to inspect vendor trash and throw it away as they look for empty packages that could indicate a theft took place. 

     All store entrances should be protected with electronic article surveillance pedestals. This serves as a deterrent to vendors who may be reluctant to try to walk out with merchandise that might cause an alarm to sound. There are many businesses which set up pedestals at the front entrances and even at employee entrances but neglect to place them at vendor service doors. If a vendor has thoughts of stealing they are looking at the anti-theft strategies and will take notice of unprotected access points. 

     Vendor supplied merchandise should also be detail checked in. Validating what an invoice says is being delivered and billed to a store and what is actually received are important steps in the vendor process. It is possible for a vendor to short an order accidentally but that still counts towards the shortage for the store. A driver can also intentionally short an order if they know the merchandise is not detail checked in. The product that is not brought in can then be sold on the side and the profits pocketed. 

     As I stated in the beginning there are very few dishonest vendors but they do exist. Build strong partnerships with them but remember that some may try to take advantage of you. Make your vendor partners follow the same guidelines that your employees follow. Be clear from the beginning and you will run into few difficulties and you will have a relationship that fosters sales for both parties. 

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What Should Retail Workers Be Expected To Do To Stop Shoplifting? Part 1

March 22, 2019 by Leave a Comment

 

Stop Shoplifting -5                                                                                                                      WC Blog 746
Sensormatic Hard Tags -3
What Should Retail Workers Be Expected To Do To Stop Shoplifting? Part 1
     Is everyone in your store prepared to stop shoplifting? Do they know what signs to look for that may tip them off that someone may try to steal? I was talking with my son who recently started working for a nationally known clothing retailer. He has been working in food retail for about 6 years but wanted to get try other areas and picked up this second job. He is assigned to the shoe department and so I was talking with him about whether he has encountered any theft incidents. He said he did have one occasion where he believes a theft took place and he didn’t realize it. He said he was busy straightening up his department and a man asked him about an expensive pair of shoes. My son said he noticed the customer was already wearing a pair like the ones he was inquiring about. My son went to the back wall and retrieved the size the customer was asking for and the customer “seemed friendly” and they talked for a few minutes and the patron left. A little later the department supervisor asked my son if he knew where the man had gone to, Loss Prevention suspected he had stolen the shoes. My son had no idea where the customer had gone and told them so. As we talked he said he must not be very good at identifying potential shoplifters. I asked if their store uses Sensormatic hard tags or other electronic article surveillance tags on the shoes to stop shoplifting and he said they do. I told him that the tags should set off the alarm system if the suspect hasn’t gotten hold of a detachment device that will work with their tags.
     This took me back to my days as a Loss Prevention Manager and I recalled the training I did with store employees. I spent time at orientations meeting with new staff members and teaching them some of the characteristics that help to identify crooks. I also reminded them they are not Loss Prevention and are not expected to nor did we want them to accuse anyone of trying to steal. I always stressed the importance of customer service and keeping Loss Prevention or management aware of suspicious persons. I also made sure my training for cashiers and front end supervisors included how to properly respond to electronic article surveillance alarms. If done properly a response to an alarm would result in recovered merchandise and a safe interaction. An improper response was another issue. The take away is that no one was expected to be a Loss Prevention professional. That was the job for my team and me. 
     I reminded my son that his job was to ensure that shoes were properly tagged with Sensormatic hard tags or whatever devices that store uses before a customer could get access to them. The other expectations were to offer great service and if he was suspicious of someone to contact Loss Prevention. I did give him some hints about what to look for that would make it easier for him to know when to contact his Loss Prevention Department.
     But how about you and your team? You probably do not have a Loss Prevention Department. Who trains you and your employees on how to stop shoplifting? Do you have a Sensormatic security system in your store? If you don’t are you aware of how much you could save in shortage reduction with the installation of a system? Would you know what may indicate someone is a shoplifter versus a shopper? We haven’t even touched on the problem of identifying dishonest employees and their impact on your store shortage. Loss Prevention Systems, Inc. (LPSI) is your go-to source for information on everything from Sensormatic hard tags and electronic article surveillance towers to training to stop shoplifting and employee theft. This is a company that has been in business since 1983 specializing in theft prevention and shortage reduction. Having conducted many Loss Prevention training sessions and worked in the field using retail anti-theft tools I have familiarized myself with LPSI’s offerings. I strongly urge retailers to consult with this company. They have all the resources usually available only to major retail chains (and more so in many cases).
     In Part 2 I will impart some of the advice I gave my son and training tips I used as a Loss Prevention Manager to instruct our store employees. What I can’t do is offer all of the resources to you that I have seen offered by LPSI. Read, Part 2, use it to help improve your efforts to stop shoplifting but also visit LPSI’s website. They can give so much more than I can in an article or two.
Sensormatic hard tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.

Is everyone in your store prepared to stop shoplifting? Do they know what signs to look for that may tip them off that someone may try to steal? I was talking with my son who recently started working for a nationally known clothing retailer. He has been working in food retail for about 6 years but wanted to get try other areas and picked up this second job. He is assigned to the shoe department and so I was talking with him about whether he has encountered any theft incidents. He said he did have one occasion where he believes a theft took place and he didn’t realize it. He said he was busy straightening up his department and a man asked him about an expensive pair of shoes. My son said he noticed the customer was already wearing a pair like the ones he was inquiring about. My son went to the back wall and retrieved the size the customer was asking for and the customer “seemed friendly” and they talked for a few minutes and the patron left. A little later the department supervisor asked my son if he knew where the man had gone to, Loss Prevention suspected he had stolen the shoes. My son had no idea where the customer had gone and told them so. As we talked he said he must not be very good at identifying potential shoplifters. I asked if their store uses Sensormatic hard tags or other electronic article surveillance tags on the shoes to stop shoplifting and he said they do. I told him that the tags should set off the alarm system if the suspect hasn’t gotten hold of a detachment device that will work with their tags.

This took me back to my days as a Loss Prevention Manager and I recalled the training I did with store employees. I spent time at orientations meeting with new staff members and teaching them some of the characteristics that help to identify crooks. I also reminded them they are not Loss Prevention and are not expected to nor did we want them to accuse anyone of trying to steal. I always stressed the importance of customer service and keeping Loss Prevention or management aware of suspicious persons. I also made sure my training for cashiers and front end supervisors included how to properly respond to electronic article surveillance alarms. If done properly a response to an alarm would result in recovered merchandise and a safe interaction. An improper response was another issue. The take away is that no one was expected to be a Loss Prevention professional. That was the job for my team and me. 

I reminded my son that his job was to ensure that shoes were properly tagged with Sensormatic hard tags or whatever devices that store uses before a customer could get access to them. The other expectations were to offer great service and if he was suspicious of someone to contact Loss Prevention. I did give him some hints about what to look for that would make it easier for him to know when to contact his Loss Prevention Department.

But how about you and your team? You probably do not have a Loss Prevention Department. Who trains you and your employees on how to stop shoplifting? Do you have a Sensormatic security system in your store? If you don’t are you aware of how much you could save in shortage reduction with the installation of a system? Would you know what may indicate someone is a shoplifter versus a shopper? We haven’t even touched on the problem of identifying dishonest employees and their impact on your store shortage. Loss Prevention Systems, Inc. (LPSI) is your go-to source for information on everything from Sensormatic hard tags and electronic article surveillance towers to training to stop shoplifting and employee theft. This is a company that has been in business since 1983 specializing in theft prevention and shortage reduction. Having conducted many Loss Prevention training sessions and worked in the field using retail anti-theft tools I have familiarized myself with LPSI’s offerings. I strongly urge retailers to consult with this company. They have all the resources usually available only to major retail chains (and more so in many cases).

In Part 2 I will impart some of the advice I gave my son and training tips I used as a Loss Prevention Manager to instruct our store employees. What I can’t do is offer all of the resources to you that I have seen offered by LPSI. Read, Part 2, use it to help improve your efforts to stop shoplifting but also visit LPSI’s website. They can give so much more than I can in an article or two.

 

Sensormatic hard tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.

 

 

Filed Under: Uncategorized

Security And Minimal Shelf Quantity Impact With A Flexible Safer

March 14, 2019 by Leave a Comment
Flexible Safer – 4                                                                                                                               wc blog 778
Retail Anti-Theft Devices – 3

Security And Minimal Shelf Quantity Impact With A Flexible Safer

    A Flexible Safer from Sensormatic is called by that name because it is created as a durable locking bag made out of Polyethylene (PE) and nylon materials. The bag is flexible while being tough enough to prevent shoplifting efforts to steal the merchandise inside of them. I like to think of them as flexible for another reason. They allow you to put a variety of merchandise on display for customers to pick up and carry about the store with the security of electronic article surveillance. I have been in the retail and Loss Prevention business for a very long time and one thing my experience has taught me is that sales increase when shoppers don’t have to wait for assistance to make a purchase. According to a 2013 Timetrade.com, “Retail Industry Executive Survey”, “70% of retailers report consumers will wait 5 minutes or less before a customer abandons a purchase and leaves the store.” I would guess that this figure included any wait time by a customer be it waiting in a checkout line or waiting by a showcase for someone to help show them merchandise. A Flexible Safer is a way to keep shoppers from having to wait and reduces the chances you will lose the customer.

     Another reason I think flexibility can mean something else when talking about Safers is that they allow MORE merchandise to be displayed than when similar retail anti-theft devices by other companies are used. For example, the store I work at sells printer cartridges. Some are on open display with no protection while other cartridges are protected in bulky, clear anti-theft boxes. Those boxes take up a lot of excess room on the shelf and that means there is less space for merchandise. You run out of merchandise at a much faster pace and have to ensure that product gets replenished. Should an empty shelf be overlooked and not refilled customers may not seek assistance to find out if there is more product in the stockroom. They may make the choice to simply leave and go elsewhere. I found an article in retailtouchpoints.com from 16 April 2018, by Glenn Taylor, “Study Reveals Why 96% Of Shoppers Leave Stores Empty-Handed” that referenced a “2018 Global Path to Purchase Survey”. According to the story, taking statistics from the survey, “shoppers leave stores without buying for a number of reasons including:
• They couldn’t find the product they needed (67.3%)
• The store didn’t have the items they wanted (66.3%)
Sometimes customers can’t find the products they want or need because the shelf space where it should be located is empty and no one has taken time to refill it. If the quantity of merchandise that is stocked on a shelf is reduced because of retail anti-theft devices the store may be selling faster than re-stocking efforts can keep up with those sales. In other words, the more merchandise on the shelf the better, especially when it comes to high volume sales items.

     As a company dedicated to increasing the sales for their clients, Loss Prevention Systems, Inc. (LPSI) understands that having merchandise on the shelf and available is important. There is sometimes a fine balance between using the right anti-theft device and sacrificing quantities of a product on display. If the merchandise is high dollar or high theft (such as infant formula) it might make sense to use a security device that may take up a little extra room on a shelf. If a product may be a moderate price-point or have a slightly lower risk of theft quantity may be important in an effort to expand sales. LPSI recognizes the value of keeping more of certain products on a shelf or peghook while still adding electronic article surveillance protection to the item. They recommend the Sensormatic Flexible Safer in those cases as a way to balance quantity and security needs. 

     Not all retail anti-theft devices offer flexibility to the retailer. They are important and they will prevent shoplifting but they can hurt sales when they limit displayed quantities. A Flexible Safer provides protection and allows retailers to display more items on peghooks versus using shelves. No more wasted “air space” between shelves on a gondola! Increase sales and security with Sensormatic Safers.

Need information on a Flexible Safer? Give us a call at 1.770.426.0547 now.

A Flexible Safer from Sensormatic is called by that name because it is created as a durable locking bag made out of Polyethylene (PE) and nylon materials. The bag is flexible while being tough enough to prevent shoplifting efforts to steal the merchandise inside of them. I like to think of them as flexible for another reason. They allow you to put a variety of merchandise on display for customers to pick up and carry about the store with the security of electronic article surveillance. I have been in the retail and Loss Prevention business for a very long time and one thing my experience has taught me is that sales increase when shoppers don’t have to wait for assistance to make a purchase. According to a 2013 Timetrade.com, “Retail Industry Executive Survey”, “70% of retailers report consumers will wait 5 minutes or less before a customer abandons a purchase and leaves the store.” I would guess that this figure included any wait time by a customer be it waiting in a checkout line or waiting by a showcase for someone to help show them merchandise. A Flexible Safer is a way to keep shoppers from having to wait and reduces the chances you will lose the customer.
     

Another reason I think flexibility can mean something else when talking about Safers is that they allow MORE merchandise to be displayed than when similar retail anti-theft devices by other companies are used. For example, the store I work at sells printer cartridges. Some are on open display with no protection while other cartridges are protected in bulky, clear anti-theft boxes. Those boxes take up a lot of excess room on the shelf and that means there is less space for merchandise. You run out of merchandise at a much faster pace and have to ensure that product gets replenished. Should an empty shelf be overlooked and not refilled customers may not seek assistance to find out if there is more product in the stockroom. They may make the choice to simply leave and go elsewhere. I found an article in retailtouchpoints.com from 16 April 2018, by Glenn Taylor, “Study Reveals Why 96% Of Shoppers Leave Stores Empty-Handed” that referenced a “2018 Global Path to Purchase Survey”. According to the story, taking statistics from the survey, “shoppers leave stores without buying for a number of reasons including:

• They couldn’t find the product they needed (67.3%)

• The store didn’t have the items they wanted (66.3%)

Sometimes customers can’t find the products they want or need because the shelf space where it should be located is empty and no one has taken time to refill it. If the quantity of merchandise that is stocked on a shelf is reduced because of retail anti-theft devices the store may be selling faster than re-stocking efforts can keep up with those sales. In other words, the more merchandise on the shelf the better, especially when it comes to high volume sales items.
     

As a company dedicated to increasing the sales for their clients, Loss Prevention Systems, Inc. (LPSI) understands that having merchandise on the shelf and available is important. There is sometimes a fine balance between using the right anti-theft device and sacrificing quantities of a product on display. If the merchandise is high dollar or high theft (such as infant formula) it might make sense to use a security device that may take up a little extra room on a shelf. If a product may be a moderate price-point or have a slightly lower risk of theft quantity may be important in an effort to expand sales. LPSI recognizes the value of keeping more of certain products on a shelf or peghook while still adding electronic article surveillance protection to the item. They recommend the Sensormatic Flexible Safer in those cases as a way to balance quantity and security needs. 
     

Not all retail anti-theft devices offer flexibility to the retailer. They are important and they will prevent shoplifting but they can hurt sales when they limit displayed quantities. A Flexible Safer provides protection and allows retailers to display more items on peghooks versus using shelves. No more wasted “air space” between shelves on a gondola! Increase sales and security with Sensormatic Safers.

 

Need information on a Flexible Safer? Give us a call at 1.770.426.0547 now.

 

Filed Under: antishoplifting

An Investment For Your Business

March 13, 2019 by Leave a Comment

When new legislation passes in many states, the array of issues that come to new elected officials varies considerably.  

Shoplifting laws are one of the many topics legislators review to make sure the punishment is appropriate.  Businesses and small businesses in general need to be protected by the laws of the country to ensure the economic growth of a locality, the state and ultimately the country.

The punishment for shoplifting varies according to the state and in some instances the county where the business is located.  Laws are put in place to make sure these silent crimes are not committed with impunity, and the shoplifter is prosecuted according to the law. 

Unfortunately, many of these shoplifting incidents are not prosecuted for  many different reasons. Ultimately, it is up to the business to decide whether to prosecute the shoplifter or not.  As a business owner, they have to consider the costs associated with prosecuting shoplifters as a rule and whether it is economically sound to do so.

A lawyer’s fee for an hour or to prosecute a case depends on the region, the experience and the complexity of a case but, either way, their fee does not come cheap. 

 As a business owner, is it practical or economically possible for you to have a privately retained attorney? Is it your business practice to prosecute a shoplifter regardless of the quantity they steal?  There are many questions one needs to answer, and many options you have to make as a business owner regarding shoplifting.

Shoplifting in the United States have become a multi billion nightmare for businesses in the retail industry.  From the casual shoplifter to organized retail rings, the losses the retail industry suffers are staggering.  The small stores or shops in this industry have to fight and stop loses because their livelihood depends on their ability to stop the shoplifters. The profit margin from sales is too small for them to ignore the problem or to neglected it for too long.

For many of the small retail businesses, a loss prevention system that allows them to protect their merchandise and profits is one of the best ways to invest in their business.  Big retail chains have for many years now invested in loss prevention systems to help them minimize the losses and help them prevent shoplifting and employee theft. 

A loss prevention system that gives the employer or management of the store up to the minute information about the merchandise , allows them to do their job more efficiently and helps them prevent theft is an investment that will pay off sooner than you think.

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Clothing Security – A Local Problem Or Something Bigger? Part 1

March 4, 2019 by Leave a Comment

 

Clothing security – 3                                                                                      WC Blog 761
Sensormatic Tags – 3
Clothing Security – A Local Problem Or Something Bigger? Part 1
     Do you take clothing security in your store seriously or do you see clothing theft as a minor annoyance? Would you be more concerned about stolen merchandise if you knew that it could be much more than a teen or adult taking something here and there? Did you know that shoplifting can be part of an international crime organization? I came across a story in The Sydney Morning Herald dated 27 Dec 2018, by Cameron Houston, Chris Vedelago and Sumeyya Ilanbey, “Australian police smash international syndicate run by Chilean tourists”. The story reports that the group is suspected of the theft of more than $1 million in merchandise. Some of the theft was from homes but much of it seems to have been identified as goods shoplifted from stores. They report one of the suspects was believed to have been, “…part of a group of Chileans who stole a trove of lingerie from a Victoria’s Secret outlet in a California mall”.  The young woman mentioned in the report had already been involved in a police raid on her hotel room in 2018 in the Los Angeles area. The reporters mentioned that police found shopping bags lined with foil in the room (known in the Loss Prevention lexicon as booster bags) during their raid. From my experiences as a Loss Prevention Manager I will assert that if the $1 million in theft is what is suspected then the amount they are responsible for as a group is much higher. Are all shoplifters part of an Organized Crime Ring? No, but the same Sensormatic tags that can prevent the petty criminal activity (if you can call shoplifting a petty crime) can stop shoplifting by Organized rings.
     How does a group get away with so much theft? I’m not talking about the legal system in the United States. Unfortunately laws are extremely varied from state to state in how shoplifting is dealt with in terms of punishment. It can range from a police citation to appear in court (I have had that take place in my jurisdiction for “cooperative” suspects) to significant jail time for multiple offenses. The sad fact is in many cases shoplifting is viewed as non-violent so the penalties are a slap on the wrist and admonishment to stop stealing. The “get away” with it I am talking about is how these criminals (and I am referring to EVERY shoplifter) have the ability to get merchandise out of a store without being detected. Clothing security involves several layers of protection and each layer supports the other. 
     The first “layer of protection” to prevent shoplifting of clothing or any other merchandise requires a culture of personal customer service. From the moment a shopper enters a store there should be a greeting from an employee. The greeter has to look at who enters and try to make eye contact. Shoplifters do not want to be noticed. I have entered stores where a chime rings when you walk in and a cashier says hello while looking at the register or doing something else, never looking at me. It is what I call the obligatory greeting. The customer should also see electronic article surveillance towers when they walk through the doors indication Sensormatic tags or other devices are in use.
     The next layer of protection still involves customer service but this takes place on the sales floor. Every customer should be approached by an employee and offered assistance in locating merchandise or matching up items as in accessorizing. This not only increases sales but also gives the employee the opportunity to determine if the customer is a sincere shopper or may be “suspicious”. I use the term carefully because I am talking about suspicions involving the customer’s actions or what they may be wearing or carrying. Are they carrying a bag from another retailer not in the area? It could be a booster bag meant to neutralize Sensormatic tags.
    I am going to continue this discussion on clothing security in Part 2 because it is an important topic and cannot be sufficiently addressed in a single article. Shoplifting is not a victimless crime, it is not a petty crime and it is a nightmare for retailers if left unchecked. You also cannot assume your shortage is the result of local opportunists you could be the victim of a much larger problem. We will explore this some more in the next article. 
For more information on clothing security contact us or call 1.770.426.0547

Do you take clothing security in your store seriously or do you see clothing theft as a minor annoyance? Would you be more concerned about stolen merchandise if you knew that it could be much more than a teen or adult taking something here and there? Did you know that shoplifting can be part of an international crime organization? I came across a story in The Sydney Morning Herald dated 27 Dec 2018, by Cameron Houston, Chris Vedelago and Sumeyya Ilanbey, “Australian police smash international syndicate run by Chilean tourists”. The story reports that the group is suspected of the theft of more than $1 million in merchandise. Some of the theft was from homes but much of it seems to have been identified as goods shoplifted from stores. They report one of the suspects was believed to have been, “…part of a group of Chileans who stole a trove of lingerie from a Victoria’s Secret outlet in a California mall”.  The young woman mentioned in the report had already been involved in a police raid on her hotel room in 2018 in the Los Angeles area. The reporters mentioned that police found shopping bags lined with foil in the room (known in the Loss Prevention lexicon as booster bags) during their raid. From my experiences as a Loss Prevention Manager I will assert that if the $1 million in theft is what is suspected then the amount they are responsible for as a group is much higher. Are all shoplifters part of an Organized Crime Ring? No, but the same Sensormatic tags that can prevent the petty criminal activity (if you can call shoplifting a petty crime) can stop shoplifting by Organized rings.

How does a group get away with so much theft? I’m not talking about the legal system in the United States. Unfortunately laws are extremely varied from state to state in how shoplifting is dealt with in terms of punishment. It can range from a police citation to appear in court (I have had that take place in my jurisdiction for “cooperative” suspects) to significant jail time for multiple offenses. The sad fact is in many cases shoplifting is viewed as non-violent so the penalties are a slap on the wrist and admonishment to stop stealing. The “get away” with it I am talking about is how these criminals (and I am referring to EVERY shoplifter) have the ability to get merchandise out of a store without being detected. Clothing security involves several layers of protection and each layer supports the other. 

The first “layer of protection” to prevent shoplifting of clothing or any other merchandise requires a culture of personal customer service. From the moment a shopper enters a store there should be a greeting from an employee. The greeter has to look at who enters and try to make eye contact. Shoplifters do not want to be noticed. I have entered stores where a chime rings when you walk in and a cashier says hello while looking at the register or doing something else, never looking at me. It is what I call the obligatory greeting. The customer should also see electronic article surveillance towers when they walk through the doors indication Sensormatic tags or other devices are in use.

The next layer of protection still involves customer service but this takes place on the sales floor. Every customer should be approached by an employee and offered assistance in locating merchandise or matching up items as in accessorizing. This not only increases sales but also gives the employee the opportunity to determine if the customer is a sincere shopper or may be “suspicious”. I use the term carefully because I am talking about suspicions involving the customer’s actions or what they may be wearing or carrying. Are they carrying a bag from another retailer not in the area? It could be a booster bag meant to neutralize Sensormatic tags.

I am going to continue this discussion on clothing security in Part 2 because it is an important topic and cannot be sufficiently addressed in a single article. Shoplifting is not a victimless crime, it is not a petty crime and it is a nightmare for retailers if left unchecked. You also cannot assume your shortage is the result of local opportunists you could be the victim of a much larger problem. We will explore this some more in the next article. 

 

For more information on clothing security, contact us or call 1.770.426.0547

 

 

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Post Holiday Retail Blues

February 28, 2019 by Leave a Comment

 

Did your sales meet, exceed or fall short of your expectations? Regardless of how they turned out it is likely they could have been better when you factor in your inventory shrinkage. Shoplifters, employee theft and paperwork errors all create additional loss that drain away some of your profits. What strikes me is that these losses are like adding insult to injury. You ordered, received, put the merchandise out and paid your vendor for it. On top of that you have your expenses, payroll, rent, utilities and more.

After all that someone, a shoplifter, comes into YOUR store with the intent to steal from you. They do not care if it hurts you, your staff and your family. They simply do not care about that. It is ALL ABOUT THEM. And on top of that it just keeps going on year after year.

But, shoplifting is no different than any other business problem. You can fix it the same way by simply paying attention to it and attacking it head on. The problem that most retailers face with shoplifting is the feeling of despair because you are not sure what you can or cannot do. What is legal? The Police seem to have little interest in helping you. The times you have caught a shoplifter have met with mixed results. The shoplifter seemed to get nothing but a slap on the wrist, if that.

So how do you attack the scourge of shoplifting? From a business’ standpoint is actually fairly simple. Cast aside the concerns about prosecution with the criminal or civil courts. We should be concerned about what could happen to us legally but the reality is you want a program to keep shoplifting from happening at all. You must get into a prevention mindset.

A prevention mindset or loss PREVENTION is exactly that we want to prevent the losses from occurring at all. Because when a shoplifter attacks us it costs us money, even if they are not successful. Not just the loss of merchandise but our time and expenses. 

The really great thing about a prevention mindset is that it costs us little in the big picture and actually is in alignment with our sales goals. Yes, you do need an anti-shoplifting system like a Sensormatic system but that is only fifty percent of the equation. 

Step one is to change the way you approach customers. Customer service is king here. Shoppers love attention. They are there for a little retail therapy. They are interested in purchasing something from you and favor the attention that your staff can shower on them. Answer their questions, help them make a choice or just let the customer know that you appreciate their being there.

On the other hand shoplifters HATE everything I mentioned in the previous paragraph. Shoplifters need privacy even if just for a moment to steal from you. They do not want any attention, assistance or help. They are there to steal your goods and YOU ARE IN THEIR WAY. So what should you do? Remember this, good customers want your attention at various levels depending on the customer’s wants and needs. Any sales floor staff that have any experience at all know when to turn customer service up or down. 

It starts the moment that the customer walks in the door. Every person that enters your store must be greeted. A greeting should include brief eye contact, a smile and a “welcome to (my store) how can I help you?” Very reliable studies have proven over and over again that impulse shoplifters which make up approximately fifty percent of the average retailers shoplifting losses will most likely not steal from you in that visit if they are greeted. This is a win-win situation. Good customers love the attention shoplifters hate it. However, you cannot stop there. Amateur and professional shoplifters will not be deterred by that alone. They require additional customer service. Approaching them to help, suggest additional items they may want to consider not only increases your sales to that customer but it puts the shoplifter on notice that they have been seen and are being observed. The shoplifter will try to shun that help. So what do you do in that case? Step back and still be in range to “help”. Many shoplifters will simply leave. If this is consistent then the shoplifter will go elsewhere to steal from a retailer that is not prepared.

So what is the second part? You must have a Sensormatic system. As much as we would like, we do not have unlimited payroll. We cannot be everywhere at once. Shoplifters look for or even create conditions where the customer to staff ratio is out of whack. That is where the Sensormatic system comes in. Merchandise that is higher value or frequently stolen is protected with a label or a hard tag. If the thief tries to steal it, the Sensormatic system at the customer doors alarms. Your merchandise is protected 24/7.

The combination of these two creates a pretty impenetrable wall that will reduce most of your shoplifting losses and at the same time increase your sales. 

And yes, Loss Prevention Systems can help you with both. As the former Director of Loss Prevention for several major companies I have worked my way up in the trenches from personally apprehending shoplifters all the way to starting and running LP programs for those companies. When you purchase your genuine Sensormatic system from us you get the training and support to fix your shoplifting problems.

Contact us today or call 1-770-426-0547 to find out more about our Sensormatic systems and getting your staff trained up to go on the offense. 

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Not Planning For Summer Customer Traffic In March Is Madness

February 28, 2019 by Leave a Comment

Not Planning For Summer Customer Traffic In March Is Madness

Have you ever noticed how quickly big box retailers will transition from the Christmas season in their “seasonal” departments to jumping into the new Spring/Summer merchandising sets? They don’t play around they are very strategic in their planning to get a jump on their competition. They use their mini-seasonal areas to drive the Valentine’s Day and Easter business but the large areas used for patio sets, plants, gardening, etc. get changed shortly after the Christmas season is over. Smaller retail stores should be doing their own transitions at this time too. It’s madness if you haven’t started putting out the Spring/Summer merchandise for your type of store by March.

     I understand there are some types of retail stores where it would seem a bit more difficult to appeal to a seasonal change. I think of luggage stores or perhaps a “mom and pop” corner grocery store where customers are used to purchasing their staple food items. But let’s think about this for a moment. Is there room for even the least seasonal retailer to adapt to seasonal sales? I would suggest there is room and it may take a bit of getting out of a comfort zone. Let’s say you sell luggage and people are going to come to your store who travel at all times of the year. Is it possible for you to carry some items that may be more colorful to appeal to a summer traveler? Think about how much easier it would be to locate a unique or brightly colored suitcase if it is on an airport carousel. While some shoppers (such as I) might prefer a traditional dark colored carry- on bag or briefcase, there are those people who fancy a more whimsical style. A change of colors and patterns might draw in more customers especially with the right touch of advertising and product placement.

     Mom and Pop grocers, sure milk, eggs and bread may be your bread and butter (pun intended) but is there any reason you couldn’t put out a display of Igloo coolers, picnic grills, aluminum foil, six-packs of soft drinks or beer? How about a front of store display with these items, grilling aprons and advertising for specials on lunchmeats, steaks and hotdogs directing consumers to your cooler section? Sometimes we all get in ruts and we fail to look outside the box for new and creative ideas to keep a business fresh and improve sales.

     There are the stores out there that just seem to always maintain the same set up and merchandising year in and year out. I can think of a local hardware store I sometimes go to when I don’t feel like fighting the other shoppers at the national hardware chain stores. When I do go to this particular store I usually have to search a bit to find what I need, it isn’t super neat but everything seems to be where it has been for the past fifteen years I have shopped there. It does make me wonder if the owner is trying to reach out to new customers or worries about the competition from the big box stores. A few changes now and again could probably make an impact on sales but that is a choice that owner has to make. What kind of changes would I suggest? I would put out new signs to let customers know about any sales that are running. Place gardening tools and gloves, tillers and lawnmowers at the front of the store. If the store has electronic article surveillance towers, upgrade them so that advertising panels can be interchanged and catch customer’s attention as they walk in.

     Seasons change and retail stores should too, before the beginning of the next season. Take a look at a national clothing retailer the next time you walk into a store. It may be January and they will start putting out swimwear when you are still wearing a jacket. Smaller retailers can take a lesson from the large chain stores. I am not saying to become them, but there are some tips and tricks you can take away. March is here and now is the time to rebound from your winter season and spring into action by driving those summer sales.

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An Accurate, Successful Inventory Is Not Due To The Luck Of The Irish

February 28, 2019 by Leave a Comment

How does Notre Dame’s football team manage to maintain a top program year in and year out? Is it the Luck of the Irish that does it? No, they field a competitive team by working hard and preparing for the upcoming season. As we enter March we think of spring and St. Patrick’s Day and the Luck of the Irish and lucky four-leaf clovers and all of these things. In retail, we also think about store inventory time and how the results will come out this year.

     If you are counting on the Luck of the Irish or just plain luck to get you through inventory and wind up with successful results you need to get a better plan. Obtaining inventory results that reflect a healthy, robust business starts well before the inventory date. While it may include the preparation time several weeks in advance of the actual day/night of inventory counting the real work begins when you start your shortage action plan.

     If this is the first inventory for your store you will not have a measurement or prior inventory as a baseline for what you will be up against. I would suggest that in your case you measure your store against the national shortage average OR you measure it against the national shortage average for your type of retail business. According to the National Retail Federation 2018 National Retail Security Survey, shoplifting accounted for 35.7% of losses while employee theft accounted for 33.2%. Loss Prevention Systems, Inc. personnel are well-versed in shortage and can be a helpful consultant to you in this area. For those who have inventoried previously you want to lower whatever the prior year shortage results were for your store. Obviously it would be fantastic if zero shortage could be counted on year in and year out but the fact of the matter is very few stores will come in at zero (I have seen overages but those always offset the next year due to poor counts or paperwork errors).

     So where does one start in their planning? First you have to look at your anti-theft strategies. With nearly 70% of the shortage attributable to theft you can take care of a big chunk of shortage by addressing this issue. Is your store using electronic article surveillance equipment to deter and prevent shoplifting and even employee theft? If you do not have an electronic article surveillance system in your first assignment is to get one. This includes the towers, tags, and even integrated cameras. Don’t use second-hand equipment or an off-brand system in your store. Using a name brand solution from Sensormatic is the best option and it is more affordable than you may think. Again, Loss Prevention Systems, Inc. can guide you into the best solution for your business no matter how big or small it may be.

     You then need to take a look at the other areas that impact shortage, operations, vendor shortage and a small portion which is undefined. Looking at each of these aspects can be time-consuming because there is so much that can impact each one. If you have managers working for you they should be looking at how shortage could be happening in their departments and present solutions to address them. That information then goes into a master shortage plan. If you are lucky you will have a team that knows where to look for shortage opportunities. If you don’t have that kind of luck or if you are the only manager for your store you are still lucky. Loss Prevention Systems, Inc. can work with you to conduct a risk assessment and identify vulnerabilities and devise plans.

     Finally, once your anti-theft system is up and running and your shortage action plans have been created you can spend the month prior to inventory prepping the store. There’s no magic to it, it is a detailed preparation to make sure every piece of merchandise is properly tagged and ready to be counted. Inspections of nooks, crannies, shelves, underneath base decks, on top of fixtures and in supply closets to locate items that have migrated where they should not have can add dollars back to your inventory.

     Four leaf clovers, lucky charms, wishful thinking nor luck of the Irish are going to get you a successful inventory. Theft prevention, careful planning and advice from people who have been in the Loss Prevention field WILL result in successful inventories. Follow this advice and find your own pot of gold at the end of the inventory rainbow.

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