Retail shrinkage and retail loss, the effects of owning inventory – Atlanta Georgia

January 17, 2011 by Leave a Comment

Retail shrinkage and retail loss are one in the same. No matter which term you use, they equal the same… Bad News for the business owner or manager.
I’ve been part of many inventories over the years and have seen lots of ways retail shrinkage affects business. I have to say, the losses all seem to occur the same way at every company.

There can be a solution, but management must be willing to incorporate specific policies, procedures and create a proactive loss prevention environment. Retail shrinkage will ALWAYS happen but it can be controlled and kept to manageable levels. For this to occur, management MUST incorporate some sort of retail loss prevention program and make them accountable for a large portion of the inventory shrinkage. This will encourage the program to dig deep to the root causes of retail loss and build a solid plan or shrink reduction strategies.  

In most companies, Retail loss prevention is the department to turn to when you store is having inventory shrinkage or retail loss. As specialists, they will and should develop a program to help counter the retail loss a store may be experiencing. Focusing their efforts on employee theft investigation, shoplifter apprehension, operational accountability audits and front end controls, retail loss prevention offers many solutions. Now, for a retail loss prevention program to be successful, they must have and maintain a solid partnership with their operations business partners. This includes onsite managers, corporate level managers and business owners.

If a plan to counter retail shrinkage and retail loss is created, then a business can focus on what is most important… boosting profits. Keep your profits and seriously consider creating or incorporating a retail loss prevention program. After all, that’s why most businesses exist, to make a profit.

For more information visit us at retail shrinkage or call us at 1.770.426.0547

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Employee theft investigation boosts profits – Atlanta Georgia

January 17, 2011 by Leave a Comment

Did you know doing an employee theft investigation boosts your profits? Retail loss prevention experts estimate that employees cause larger losses than shoplifters. These facts prove the necessity for a solid retail loss prevention program and diligent employee theft investigation.

Now, we all know that inventory shrinkage caused by internal theft can cripple a store. An employee theft investigation should be tailored to your business to specifically target the highest shrink merchandise in your stores.

Recently, a company I worked for had a 10% shrink number after an inventory. Now, being in retail loss prevention , this high number told me that this store needed in depth employee theft investigation . It was obvious this store was suffering from internal theft and it was only gonna get worse if the retail loss prevention department didn’t do something about it. So, I initiated an employee theft investigation on several employees in the store.

Conducting investigations on internal theft suspects can be a daunting task if your business is not suited with the right equipment. After reviewing several hours of video, speaking with several associates, I was able to narrow down the main culprits to loss inside of this store. Employee theft was rampant in this store. The managers were even part of the problem. I arranged my employee interviews based on the active amount of their participation. First, was the manager on duty. He had keys to all parts of the store including the receiving area roll-up door (where most merchandise was exiting), and had codes to access the alarm panels and camera systems in the store.

During the interview of the manager, I asked him about internal theft in his store and what he thought of the inventory shrinkage. Immediately the manager told me that none of his employees were stealing and that shoplifters caused all of the 10% loss.

For more information about employee theft , internal theft , corporate fraud investigation or corporate fraud investigator contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia

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Retail Anti Theft Devices

January 14, 2011 by Leave a Comment

Retail anti theft devices may just be the cure for what ails you! If your business is having a problem with shoplifters you’re not alone. Reports say that stores in the U.S. lost $26 billion last year from shoplifting alone. Sure, you can hire a semi-pro wrestler and a pit bull to guard every exit, but luckily we live in a world of technology and therefore there’s a better way.

Security experts say the most effective anti-shoplifting tools these days are CCTV and EAS systems (electronic article surveillance) such as checkpoint security systems . Separately they are both a good option. Used together, experts say, they’re almost unbeatable. EAS is a technology used to identify articles as they pass by pylons in a store. This identification is used to alert someone that unauthorized removal of items is being attempted.

According to the Association of Automated Identification Manufacturers, over 800,000 EAS systems have been installed worldwide, primarily in the retail arena. (So if you don’t have one you’re already behind the curve) EAS systems are useful anywhere there is an opportunity for theft of items of any size. These types of retail anti theft devices enable a retailer to display popular items on the floor, where they can be seen, rather than putting them in locked cases or behind a counter.

Shoplifters may be extremely inventive and rather patient at times but the truth is that they’re lazy. If you properly protect the items within your store they will simply take their business elsewhere to some other retailer who is not quite as vigilant and dedicated to the idea of loss prevention as you are. Retail anti theft devices such as checkpoint security systems and others will help your business become an unfavorable target to shoplifters and keep your product on the shelves.

For more information about retail anti theft devices or checkpoint security systems or anti shoplifting or stop shoplifting contact us or call 1.770.426.0547

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Identifying thieves: How to prevent shoplifting – Atlanta Georgia

January 14, 2011 by Leave a Comment

Shakespeare wrote in Hamlet “One may smile, and smile, and be a villain.”  This is a point that I press upon my employees when teaching them to prevent shoplifting within our business.  I don’t believe that everyone is a thief…but in order to prevent shoplifting your employees have to know how to identify and deter the shoplifters that frequent your establishment.

I ask my newly hired employees “what does a shoplifter look like?”  In response to this question I usually receive a variety of interesting answers.  Some employees already have the insight to know that there is not a “look” to a shoplifter.  Any person that walks into your store could be a shoplifter, whether they are young or old, male or female, etc.  In order to prevent shoplifting and reduce your losses employees need to observe customer behavior and identify when a customer may be acting suspiciously.

A person intent on shoplifting will take note of exits, the merchandise they would like to steal, and where the employees are located in the store.  He or she will notice secluded corners and choose these areas to conceal your merchandise.  Shoplifters may work in pairs so one can distract an employee while the other steals.  Shoplifters may also select merchandise quickly without really “shopping” i.e. looking closely at the item, or the price.  When your business is training employees to prevent shoplifting , these behaviors need to be brought to their attention.  Noticing simple behaviors can speak volumes as to the intent of the customer.

I recently visited with my employees that apprehend shoplifters at the company I work for.  I had studied 2010’s statistics and noticed that our average shoplifter age was pretty young – late 20s.  I reminded my employees, as all business owners should do, that anyone, of any age, might be a shoplifter.  Just because she looks like your Grandma doesn’t mean she isn’t a shoplifter. 

Their actions must be what we listen to when identifying a customer’s intent to shoplift.  Train on these technique, and prevent shoplifting in your business.

For more information contact us:  prevent shoplifting or call 1.770.426.0547 – Atlanta Georgia

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The benefits of retail loss prevention and employee theft investigation – Atlanta Georgia

January 14, 2011 by Leave a Comment

Retail loss prevention has been part of the retail world for many years. Contributing to the protection of assets and boosting profits, retail loss prevention is a solid operational partner.

In many instances retail loss prevention has proven its worth. When I first started working in the retail loss prevention field, as a loss prevention agent, my job was simple, catch shoplifters. There was nothing to it. Later, as I developed my experienced changed from simply catching shoplifters to  employee theft investigation. Employee theft investigation was a more challenging aspect of retail loss prevention. Employee theft investigation showed just how easy it was and is for dishonest employees to ruin a business.

Prior to this experience, I was a bit naïve and thought, “no way, employees don’t steal” or like many managers out there, I thought, “I work with a great group of people, there’s no way they’re stealing”. Hello! Big mistake in the thought process. Infact, in many instances, some of the most trusted employees I worked with were stealing the most merchandise and causing the most retail loss. However, with internal theft or employee theft investigation , I learned that there are many factors leading to retail loss.

Examples of statistical information pertaining to internal theft include: young males (under25), employees with personal money troubles, family members working in or at the same location, disgruntled employees and a lack of management oversight. Although, these are just a few, there is no fool proof way to identify internal theft , nor is there any exact way to stop it. However, with diligent employee theft investigation and a solid loss prevention program, internal theft can be greatly reduced.

Now, the other factor, shoplifting. How can we ever prevent shoplifting? Is it possible to prevent shoplifting? YES! You can prevent shoplifting. Shoplifting has been around since almost the beginning of time and will continue to happen, but it certainly is possible to prevent shoplifting.

For more information about internal theft or employee theft contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia

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The Key to an Employee Theft Investigation – Atlanta Georgia

January 14, 2011 by Leave a Comment

Simply put, the key to a proper employee theft investigation is listening. I know, it seems like common sense right? Well the one thing I’ve learned in the 10 plus years I’ve been in this business is that common sense isn’t all that common. When it comes to uncovering the perpetrator of an internal crime, the best sources of information are often the people who work together and see one another day after day in all types of situations. They know what constitutes “normal” behavior in co-workers and can spot abnormal behavior within minutes. You, the investigator, will probably not have that perspective.

In any employee theft investigation the most important step is to make the employees understand why revealing the information is good for them. Coercing employees to tell what they do not want to tell only works on the television cop shows. All investigators will eventually learn that it’s the innocent suspects who are most eager to see the case solved. Nobody likes the specter of doubt hanging over their head, especially when they’ve done nothing wrong. So logically, they should bend over backward to tell the investigator everything they can about who might have committed the theft right? Wrong. There are several reasons why they don’t.

News, especially bad news, travels fast within any organization and nobody wants to be labeled as a “snitch” or a “rat”. Therefore the investigator must convince the individual that they’re actually doing a service to their fellow employees by divulging the information. Even if the other employees don’t realize it they are biting the bullet and in fact being a hero by telling what they know or suspect. For this to be effective the investigator has to also believe it. Anyone who feels like they’re being conned will clam up immediately. Keep the lines of communication open and you will simplify your employee theft investigation .

For more information about employee theft, corporate fraud investigation or internal theft contact us at employee theft investigation or call 1.770.426.0547

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Security Tags on Clothes

January 13, 2011 by

Security tags on clothes are one of the many different tools utilized by loss prevention professionals around the globe in an attempt to reduce shrink. However, it’s not enough to simply install these devices and walk away. Sure, they are definitely a deterrent, especially to the novice shoplifter, but these devices can be circumvented. So for them to be useful they need to be coupled with vigilance and knowledge.

There are numerous internet sites that teach people how to remove security tags on clothes . Most of these sites aren’t there to cater to the shoplifter and their needs. On the contrary, they are there to assist the legitimate customer who has gotten home after purchasing a garment to find that the salesperson neglected to take the tag off. Do you think shoplifters read these sites too? Is a polar bear’s nose cold?

In response we, the retailer, need to make sure that the security tags on clothes are securely fastened and that the clothing alarm is operational. Next, train all of your associates to respond to all clothing alarm events. I suggest creating a log. Every time the clothing alarm is triggered there should be a corresponding entry on the log with a brief description of why the clothing alarm went off (i.e. false alarm, customer too close, shoplifter, etc.). Far too often an overactive clothing alarm system lulls associates into a mindset of simply ignoring the alarms. This is the perfect situation for shoplifters. Security tags on clothes are a great way to combat external theft if they are used vigilantly.

For more information about clothing alarm or clothing security or clothing security tags contact us at Security Tags on Clothes or call 1.770.426.0547

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Risks of the Loss Prevention Investigator – Atlanta Georgia

January 13, 2011 by

The job of Loss Prevention Investigator can often be a dangerous one. We deal with sections of society that are often desperate and potentially violent. Therefore, one must always be prepared for the worst when attempting to apprehend a shoplifter. Most of the time the shoplifter who lashes out or begins to fight is simply trying to get away, but occasionally you’ll find those who have some sort of point to prove. In certain cities it is part of gang initiations, and some subjects are so impaired by drugs or alcohol that they barely know what they’re doing. A loss prevention investigator must keep all of these possibilities in mind.

In 2004 one of my detectives spotted an entire family (mom, dad, teenage daughter) concealing merchandise in several large bags that they were carrying. As they prepared to exit the store we positioned ourselves to apprehend them. My detective stopped the mother and daughter with little incident, however the father ignored him and kept walking. I approached the man and calmly tried to get him to stop and return with me inside to discuss the incident. Suddenly he turned to me brandishing a 5” knife and lunged at me. I managed to quickly sidestep the attack.

Due to the foolishly high level of testosterone that usually runs through my body I briefly thought about retaliating. However, becoming a human shish kabob has never been a dream of mine so I simply stepped away and allowed the man to escape. I immediately contacted the police, giving them his description and his vehicle’s license plate number. Within minutes he was arrested and taken to jail. In court I learned that the docile-looking family man was a diagnosed paranoid schizophrenic with a history of violent criminal activity. Who knew? The loss prevention investigator must remain ready for anything.

For more information about loss prevention agent or loss prevention consultants contact us at: Loss Prevention Investigator or call 1.770.426.0547

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Retail Shrinkage in High Risk Areas – Atlanta

January 13, 2011 by Leave a Comment

Retail shrinkage is defined as a reduction in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud. These contributing factors increase exponentially when your place of business happens to be in a high risk area. What is a high risk area? Depending on where you live it may simply be a popular mall or busy part of town with enough foot traffic that a would-be shoplifter can easily blend in. More often it is a store located in a somewhat undesirable part of town; some place where the socio-economic status of the surrounding community lends itself to an increased crime rate.

Over time I have worked in a number of these types of places attempting to reduce the retail shrinkage in particular stores. As a result I’ve become acquainted with a number of drug addicts and boosters.

I consider these to be your 2 biggest problems in this type of area. Drug addicts steal either to maintain their high or to eat (any money they do make legitimately goes to drugs). They are often impaired at the time of the theft so they may or may not remember even being apprehended, arrested, etc. This is a problem because they may be back the very next day, unaware of what happened previously.

The real enemy of retail shrinkage is the booster. Unlike the drug addict they are fully aware of what they’re doing and normally consider it a business. Like any good businessman they make it a point to perfect their craft, know the industry, your limitations, etc. and exploit them in any way they can. In poorer neighborhoods boosters can regularly sell your merchandise for half of the price that you do. After all, they stole it so whatever they make is all profit to them. Your retail loss is their retail gain.

If you’re going to operate a business in a high risk area you need to make yourself aware of the causes of retail shrinkage in these areas. Do not let retail loss make your year of poor profits

For more information about retail loss contact us at Retail Shrinkage or call 1.770.426.0547 – Atlanta Georgia

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Retail Theft Prevention

January 12, 2011 by Leave a Comment

Retail theft prevention is a difficult job which requires you to be on your toes at all times. Most shoplifters attempt to remain undetected while they conceal merchandise and quietly slip out of the door without anyone being the wiser. However, there are a percentage of shoplifters who are simply brazen criminals; they just grab stuff and walk out with it. These crooks rely on the gullibility and slow response time of sales clerks. Some will grab garments from racks close to the door and run out. This can be easily prevented by alternating the directions of hangers on the racks. This makes the hangers lock up when someone tries to remove too many of them at once.

Fitting rooms are a necessary convenience for your legitimate customers. However, they can be a dream for shoplifters. A critical part of retail theft prevention is to keep a watchful eye on your fitting rooms. A common technique, especially if your fitting rooms aren’t well monitored, is for the thief to steal garments by putting them on under her own clothes and wearing them out of the store. Others will just put the clothing on and walk out, leaving their own clothes behind.

The really brazen thieves simply walk out with large items. You can prevent this by making it unusual for legitimate customers to carry out their large purchases with a policy that all large items must be picked up at a location physically separate from the sales floor, or that employees take all large items out to customer’s cars. Many retailers place bright stickers on purchased large items. This at least makes it easier for employees to tell if the merchandise has been paid for or if it is being stolen.

Retail theft prevention requires everyone’s involvement, so make sure your associates are trained and knowledgeable in what to look for.

For more information about anti shoplifting or retail anti theft devices or stop shoplifting contact us Retail Theft Prevention or call 1.770.426.0547

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