If you believe that you can outsell your cash or inventory losses due to theft, you probably won’t be in business for long. Or if you do survive, you are no way living up to the margins you deserve. In my 35+ years of loss prevention particularly helping medium to small retailers, I have heard this more times than I can believe.
Consider this, as an example, if you have a net 2% profit over all. In other words after taxes, rent, payroll, merchandise cost, insurance…. you clear 2 cents on the dollar. Then a $100 dollar loss will cost you $5000 (100÷.02). Yes, FIVE THOUSAND DOLLARS. You will have to purchase, ship, receive, stock and sell another $5K just to BREAK EVEN on a $100 loss. I doubt even a drug dealer would make money that way.
Don’t delude yourself.
Now on the flip side. I do not advocate that you turn your store into a six sided steel box to protect yourself from shoplifting, employee theft, vendor fraud and paperwork errors. Exactly the opposite. I want you to have an open, friendly and inviting environment for your legitimate customers and employees. What you can’t be is naive to your shrinkage and loss problems.
First, realize that you must do inventories at a minimum quarterly, more often if things are seriously out of whack. Cycle counts for individual SKU’s that seem to be loss problems are also important. Do not wait until the end of a quarter or heaven forbid end of year to find out you have a problem. You have to go on offense not defense. Theft and shrink are business problems. Nothing more, nothing less. We can easily show you how to do this. You do not have a retail LP issue that has not been seen and dealt with before.
In regard to employee theft what are your hiring practices. As an LP professional that has personally conducted over 2300 investigations and interrogations of employees involved in theft, I started looking up the drain pipe to see where it is all coming from. It starts with the application and employment interviewing.
For shoplifting; Do you and your staff know really know how shoplifters act. Probably not. Shoplifters are easy to spot. You just need to know what to look for. Stopping them is incredibly easy. Again, you just need to apply the correct tools and training.
But all of this is for nothing, if your retail attitude is not straight.
Another problem is business apathy. The “oh I am so busy I do not have time”. You don’t have time to keep your profits on your bottom line and not the thief’s? Then why are you doing all this? Making a living for you, your family and employees is all what it is about.
I have had people steal from me. It doesn’t feel good and it makes me angry. I work really hard and try to work smart to provide my family’s income and the income for my employees. But the thought of simply covering it up in my own mind is unthinkable. It should be for you also.
Go on the attack. Fix your loss problems before they happen. Remember, we can help you with that. We are simply an email or phone call away.
Have a super retail day!
How many of you have done IT? You know the IT I’m talking about. You looked at an application, interviewed the candidate, had a bit of an unsettled feeling about him or her but hired them anyway. IT may be a few days, a few weeks or a few months later but IT becomes a reality, buyer’s remorse. You hired someone who turns out to be a dud. It may be they are calling out of work on a regular basis or perhaps they aren’t following directions on tasks you are assigning them. It may be that you think they are stealing money or merchandise from you. Whatever the problem you just wish you hadn’t hired this person. It is frustrating to make those types of employment decisions, but don’t feel like your small retail store is all alone because you have to make these hiring choices yourself. It even happens to big companies that have Human Resources departments dedicated to trying to hire and retain the best employees.
We make decisions each and every day that have consequences. We set our alarm clocks and when they go off we choose to do the right thing and get up so we have time to prepare for work properly, showering, grabbing a bite to eat, sipping a cup of coffee or two and saying good-byes to our family. It is possible we may choose to do the wrong thing, hit the snooze button and get that 5 extra minutes of sleep but there is a cost associated with it. That five minutes easily turns to fifteen minutes, showers go by the wayside, we grab the first thing we can find in the closet (or hamper), our socks wind up not matching and if we are fortunate we grab a cup of coffee in a travel cup and hope it doesn’t spill on us as we jog/stumble to the car.
I remember the days when I needed to fill a position on my Loss Prevention Tea

As many of you know Alpha High Theft Solutions was acquired by Checkpoint Systems many years ago. Checkpoint has encouraged Alpha’s brand growth and innovation. Alpha has produced the best high theft solutions, hands down in the industry. Innovations like Spider Wrap, Keepers, Bottle Locks, Cable Locks, Shark Tags, specialized hard tags literally protect billions of retail products worldwide.
I don’t know how many times I have heard it, but I have heard it said that shoplifting is not a crime that is premeditated. I have heard and read the arguments that dismiss the seriousness of the crime and portray the criminals as opportunists acting on the spur of the moment. Implicit in the argument is the minimizing of the extent of Organized Retail Crime rings as well as the willingness of shoplifters to steal from your customers. I have even had people who think along these lines voice their disapproval when I had shoplifters I had apprehended and was walking to my security office. I recall one occasion when I apprehended three young men, about 14 years of age and was by myself. I had them stand with their faces against the wall as I had to get my keys out to unlock the door to my office. Two men were sitting outside my office and one muttered under his breath that I was being a butt, only he used a more colorful adjective. I looked at him and told him to mind his own business. The point is that there are people more sympathetic to the criminals than retailers and see shoplifting as a minor infraction at worst and mischievous behavior at best. The attitude among those that hold to those beliefs might change if they realized that these shoplifters aren’t necessarily choosy about who they steal from. They also don’t consider the safety risks posed by the careless acts of these criminals.
Shortage control and theft prevention for small retailers which have no Loss Prevention Associates in the store was the topic of a recent article in an online loss prevention magazine. The points were well made and much of it was directed at stores that may have district or regional Loss Prevention Managers. But the truth is there are many small, independent retailers with no affiliation to a larger company. How do these stores cope with reducing shrink and preventing theft? It could be a tough problem but Loss Prevention Systems Inc. (LPSI)has the solutions that can keep small stores keep shortage down and profits up.
In some regions, police departments warn retail stores and home owners of an increase in shoplifting and burglaries during the summer months.