Cellphones On The Salesfloor – The Good, The Bad And The Ugly Of It

The use of cellphones in the workplace has become more prolific over the years. It used to be that managers could put out a policy stating that the use of cellphones was strictly forbidden. I used to be in this camp and to a certain extent, I still am. As a Loss Prevention Manager, I saw the negative impact phones could have on customer service. Employees would focus on the phone at the expense of the customers. When the culprit was a cashier I would see the violators of the policy hiding the phone next to the register and texting in the midst of a transaction. That was totally unacceptable and did on more than one occasion result in a register error. Either merchandise was not properly scanned or the wrong change was tendered to the customer. In several cases, I had cashiers texting family and friends telling them to come in and go through their checkout lane. This would result in theft through passing or “giving back too much change” commonly known as cash theft. Of course, using the phone as a means of stealing from the store was the ugly of the cellphone issues. 

     The bad side of the cellphone conundrum is the customer service issues they cause. You have seen it, the sales floor employee looking at their phone and texting or looking through their music. Eye contact is almost non-existent. As a shopper, this drives me up to the wall. If the employees would spend as much attention to shoppers as they do their phones I can only begin to imagine the increased sales stores would enjoy. Now, as a manager in a college library, I have student assistants working for me who all have phones and most carry the phone in their back pockets. We have policies restricting when they can use the phone but often I have to correct them when they violate the policy and pull the phone out and begin texting. We have the policy in place for the same reasons that stores have (or used to have) the policy; to ensure customer service is the number one priority. Making the enforcement of the policy more difficult is that other supervisors are pulling out their phones and using them. This seems a bit hypocritical in my view.  

     There is a good side to allowing cellphones in a retail or customer service environment and it has softened me just a tad to the arguments in favor of them. If a store employee is on the sales floor and sees suspicious activity from a potential shoplifter the employee can quickly get in contact with a manager without looking for a store phone. 2-way radios are not always the most effective communication devices. Some associates keep the volume on their radios turned up and even if an earpiece is in use conversations can be overheard. I have had shoplifting suspects hear employees talking and drop merchandise as I was preparing to stop them for stealing. I have also seen customers get angry when they heard employees talking about them over radios. It could be talking about the customer’s behavior or something the customer was saying that was causing a disturbance. For example, the customer could be causing a scene about a return they were trying to do that was refused. Radios are just not always the best communication tool from a safety or security perspective. Cellphones make a convenient and more discreet method of communication and can even include text messaging which isn’t heard at all.  

     Another pro-cellphone argument is the ability to summon help in a store in the event of an emergency. As we see in social media today there is hardly a significant event that can take place without someone(s) getting it on a cellphone camera. From natural disasters to vehicle accidents and even active shooters, right or wrong people are going to get video and messages out and post it. The more employees that are allowed to carry their phones the greater the likelihood first responders will be notified quickly from multiple sources in the store. Think about the advantages this could have in the event of an altercation or robbery. Someone is likely to get through to authorities much quicker than if a store phone is the only accessible communication device. 

     As much as they can be a pain in the neck to retailers, cellphones are here to stay. By laying out expectations and policies regarding when they can be used managers can try to manage the use of phones while being flexible in allowing them to be in an employee’s possession. Who knows, such a policy might be a lifesaver someday…literally.   

Caught A Shoplifter? Now What? To Prosecute Or Not

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.

Vendor Theft: Causes, Effects and Prevention

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. 

Theft And Fraud Can Bankrupt A Business; Contact Us For Training Seminars That Will Help You Reduce Shortage And Remain Profitable

 According to the Jack L. Hayes Annual Retail Theft Survey, released June 2016:

  • 1,170,056 shoplifters were apprehended in 2015 resulting in over $150 million recovered from apprehended shoplifters
  • 75,947 dishonest employees were apprehended in 2015 resulting in over $55 million in recoveries
  • One out of every 38 employees was apprehended for theft from their employers in 2015.

This survey was based on information from 25 large retail companies with 21,228 stores and over $700 billion in retail sales (2015). Combine this with information from the 2015 Global Retail Theft Barometer (GRTB) Report that placed shrinkage in North America at 1.27% or $36.79 billion dollars (pg. 50) and you have some scary statistical data if you are a small business owner. The 2015 GRTB also reported that shoplifting was the cause of 36% of retail shrink and dishonest employees were responsible for 45% of shortage (pg. 53). According to statisticbrain.com 37.5% of employees have stolen from their employer at least twice. The same website reports 33% of all business bankruptcies are the result of employee theft. THAT is a lot of theft! What is an employer supposed to do? If the 25 large companies surveyed by Jack L. Hayes are being impacted like this and they have access to Loss Prevention resources, how can a smaller retailer prevent this kind of theft? Is there a way for small to medium stores to address theft and fraud, reduce shrinkage and improve profitability?

     The answer to the question is yes, there is a way for small businesses to reduce shrinkage due to shoplifting and employee theft. Loss Prevention Systems, Inc. has training seminars available that will provide information on various forms of employee theft and the real impact they have on a business. The seminars don’t simply instruct on how the activity occurs but also on how it can be prevented. Additional seminars are available on shoplifting and the methods you can use to protect your merchandise and your profits. How do you detect shoplifters? Do they all act the same? Should you approach them and attempt to get your merchandise back? All of these questions will be answered by Bill Bregar, President of Loss Prevention Systems, Inc. 

     Bill’s extensive background in Law Enforcement and Loss Prevention gives him the expertise to ensure you and your staff receive solid training that can make an immediate impact on shortage reduction in your store(s). Bill’s career in investigations began when he served in the U.S. Army as a Military Policeman and in the U.S. Army Reserve as a Military Intelligence Officer. He worked for 2 years as a Police Officer for Central City Colorado. Bill has held positions of increasing responsibilities starting as a Security Manager for a grocery store chain, advancing to two different Regional Loss Prevention Manager positions, working as a Director of Loss Prevention for two different companies before becoming the President of Loss Prevention Systems, Inc. Bill’s professional competencies include being an “Expert Witness,” a Licensed Private Investigator in the State of Georgia and a Private Detective and Security Agency Training Instructor since 1998. Bill also holds a Bachelor of Science Degree in Criminal Justice and Criminology, Private Security Administration & Management from Metropolitan State College, Denver, Colorado. Finally, as someone who has conducted over 2300 employee theft investigations, Bill has the proven field experience that is a testimony to his ability to speak on issues of retail theft and fraud.

        If you want your business to be successful you have to ensure you are prepared to address all areas of shrinkage, especially those areas that impact you the most, employee theft and shoplifting. Ignoring these factors or trying to manage them without the proper knowledge and training is a recipe for disaster and you may find your store(s) in that 33% that declares bankruptcy due to employee theft. Contact Loss Prevention Systems, Inc. and schedule your training seminars with one of the premier experts in the industry today. 

Shoplifting And The Law

Law changes across the United States dealing with shoplifting are always changing.  Police departments across states work among businesses to protect them from shoplifting and other illegal activities. Businesses need and demand harsher sentences to deter shoplifting.  Businesses dealing with shoplifting are inarguably in accordance with the police force, and want solutions to protect their business and ultimately their bottom line.  When training your loss prevention personnel, what is allowed and what is prohibited according to the law, must be addressed with them and with the management of your company. A well trained loss prevention officer can be the difference between a law suit or not.

For more about this topic, follow the links below.


Civil Demand Letters After You Are Busted For Shoplifting

Shoplifters who were caught and released are getting an additional scare in the mail after the event occurs. You may have been caught lifting a pack of gum, or a shirt from a local store. When you were caught you may have just been asked some questions and let go on the spot. However, a letter might come in the mail to scare you after the fact even if you aren’t arrested.

Typically when you are caught shoplifting in Illinois, the store gets their merchandise back undamaged, on the spot. There are no damages incurred by the store, as they are free to sell that t-shirt or pack of gum. However, some law firms are coming after shoplifters in an attempt to gain monetarily for the event. A letter arrives, from a law firm claiming damages and back legal fees they claim a shoplifter owes.  This is called a civil demand letter. This letter does not mean any charges have been filed against the shoplifter and the person who receives the letter probably shouldn’t pay. In my opinion, making the payment admits guilt.


Know Your Rights if a Store Detains You for Shoplifting

Being detained by a store or mall security office under suspicion of shoplifting is an experience no one wants to have. Often mall security will try to pressure you into signing a statement admitting your guilt (often threatening to call the police if you don’t) or force you to pay restitution for your offense, but in some cases things can escalate. If you’re detained for shoplifting—regardless of whether you’re innocent or guilty—you have rights. Here’s what you need to know.

This post is part of our Evil Week series at Lifehacker, where we look at the dark side of getting things done. Knowing evil means knowing how to beat it, so you can use your sinister powers for good. Want more? Check out our evil week tag page.
What Has to Happen for a Store to Detain You

The first thing you need to know is what a store has to have or has to see in order to exercise their right to detain you. First, a witness or employee needs to establish probable cause.


Shoplifting offenses are fairly common, but that doesn’t mean shoplifting crimes aren’t taken seriously.

Shoplifting offenses are fairly common, but that doesn’t mean shoplifting crimes aren’t taken seriously. Every state’s penal code includes provisions that apply to shoplifting (usually under the umbrella of theft or larceny statutes), and penalties can be harsh — especially when the dollar value of the merchandise is high, or the offender has a criminal record.

What is Shoplifting?

Shoplifting is typically defined more broadly than the simple removal of merchandise from a store without paying for it. You can also be charged with shoplifting (or retail fraud) for things like:

  • altering a price tag
  • removing (or even just trying to remove) security tags and other theft-prevention
  • “secreting” an item on your person while still in the store (putting merchandise in your pocket or purse), and
  • removing an item from its packaging and concealing it in or among other merchandise.