Retail Burglar Alarm System Considerations

September 8, 2015 by Leave a Comment

240x600I thought I would provide you with information to assist you in making decisions regarding the purchase or maintenance of a security system for your property. The information provided will help cut though the “fog” of choices regarding alarm systems.

I have over 35 years of experience in both commercial and military property protection. My Bachelor’s Degree is in Industrial Security and my knowledge includes physical security, design of alarm solutions and installation. I am also a licensed alarm tech.

When selecting a security system for a commercial space, you do not have to spend a great deal of money. However, you need to be cautious of putting in a system that is so inexpensive that you are really only getting a false sense of security. If you purchase smart, you will have a good system that will last for years and provide excellent coverage at a very reasonable price.

Choosing a provider – There are so many choices that it is usually overwhelming. Ranging from large national chains to single man shops. What is the best? Well, there is no answer that fits everyone. But you should consider the following:

How reliable is the company? How long have they been in business?

With large national chains, you tend to be just a number despite their advertising claims.

With some small operations you have to be concerned, if they will be there next year.

Generally regional chains and smaller operations are going to be more attentive to your needs.

Be VERY cautious of alarm sales people. Most of the time they are focused on quota and really do not care, if you are properly protected or not. Most do not have practical knowledge of physical security, they are salesmen. Make sure you get what is best for you not for the sales person who is trying to make quota and/or selling you components that are add-ons you really do not need.

How long is the contract? 5 years is WAY too long of a term. A good contract length is 2-3 years. Remember, if they cannot hold you with good performance and service, they will tend to try to get a longer contract. Length of contract is negotiable even with large companies. Besides where will you be in 5 years? Will your company have outgrown your current space and you have to move? An assurance of “oh if you move we will move with you” may sound great but what if they have done a poor job? Do you want to continue that relationship?

Watch out for companies that have wording in their contract that automatically raise your monitoring charge usually on an annual basis. Many times it is explained away as a “cost of living” type charge. It is just an underhanded way to get more money out of you.

I will discuss equipment later in this document but keep this in mind: A trick that the large companies do, is sell you the alarm control.  But it is proprietary and THEY are the only company that can program it. This keeps you locked into them forever. No one else can monitor or service it. Insist on a NON-Proprietary alarm control.

Are they insured? Get a copy of the insurance and insist on an updated copy every year. Better yet have them list you on their policy. Is their coverage adequate for a loss due to their negligence? Keep in mind that alarm companies are NOT insurers. They will not insure your life or property losses. That is what your insurance is for. But if they make a serious error or commit Errors and Omissions (E&O), you need them to cover their mistake. Have your insurance agent review the coverage document provided to you. Do this up front. Like my Attorney says to me “Let’s get the paperwork right at the beginning because I have never seen anyone wear their wedding dress to the divorce”.

Are they licensed? Check the Secretary of States web site. Are they properly licensed for low-voltage alarms, are there complaints….?

System Design – Unless you want a lot of bells and whistles you can keep It pretty simple. Here are the key items you should have:

Alarm Control (brains of the system). See above about proprietary vs non-proprietary.

Alarm Keypad near the front door. This is how you arm and disarm the system. In my experience a keypad with an “alpha” display is best. This usually costs a bit more but instead of it displaying a zone number such as “Zone 08” it will for example say “Back Door Left”. This is much easier to deal with when there is a problem.  And there will be a problem usually late at night when you need clear information. If you also access your suite from several doors, then you want a keypad at each door for your convenience.

Door Contacts. Contact every exterior door both personnel and overhead doors whether you use them or not. They are a “hole” in your wall.

Glass Break Detectors should cover EVERY bit of your glass that is accessible. This is the most likely way a burglar will break in. Usually one glass break detector in every office with any windows will take care of it.

Motion Detectors. You should have at least one. This should be in a hallway or other area that would make it very difficult for someone to move very far without tripping it. You do not need to cover every square foot. That is overkill and not generally necessary. The exception would be, if you have very valuable supplies, equipment or other assets you need protecting. Then a motion detector covering that area is warranted.

Fire Protection is a nice thing to add. This may help reduce your insurance premiums. Keep in mind that you may be in a building that has a sprinkler system. What you should ask is that sprinkler system “monitored by a central station” or is it simply going to ring an outside bell if activated. From a fire perspective you want it monitored. However, what happens if there is a water flow in the middle of the night or on the weekend and no one discovers it until business hours? Monitoring will keep your losses in merchandise and structure more limited.

Burglary sirens are nice but do not go crazy. One siren on the inside is enough. Keep in mind that almost every keypad has a built in siren.

Automatic Testing – This is one of the most overlooked issues. If your alarm system is not checking in with the alarm companies central station on a routine basis then how would you ever know if it stops working? This happens a lot! Alarm systems are electronic and mechanical devices that do break. An electrical surge from a phone line connection or 110 Volt power happens very frequently. If your systems communications go down you may never know it. It will not show up on the keypad.

Look for a “Supervised, Weekly Timer/Test”. This is an automated signal that your alarm control is programed to send every week at the exact same time. The central station computer is watching for this signal and if it does receive it then the central station computer notifies an operator and they then notify you. This process is all automated and normally is programed to happen in the middle of the night. The central station will then notify you the next day during business hours. If you are really concerned, then you may wish to select a daily timer/test signal.

Timer/Test signals are very inexpensive to you and many companies provide a weekly one free of charge.

Notification of an Alarm – This is the call list that the central station uses to get a hold of you in the event of an emergency or a problem. They cannot help you, if they cannot reach you. Keep this list up to date. Some of the better alarm companies can send you an automated email several times a year with your current call list. This reminder helps you to keep the list current. The problem with a call list is that it is out of sight, out of mind. Without these reminders you usually do not know until there is a problem. You should also have the alarm company send you an automated e-mail whenever there is an event such as an alarm, timer/test fail, maintenance problem…. Those should also be included in your service at no charge.

Reports – Another often overlooked feature is an open/close report. Your alarm company can program your alarm control to instantly send a signal to the central station each time the system is armed or disarmed. Your system tells the central station which employee armed/disarmed and at what date/time. A summary report is sent to you once a week by e-mail. You should tell them you want an “all activity” report. This should not cost any more. That way you will also see alarms, troubles…. In addition to the opens/closes. This is much easier for you to read. Most of us only need a “log only” report. The log only version is less expensive because there is no intervention by a central station operator.

This report is a very important tool for business owners and managers. It will let you know who is coming in and when which is a good tool to assist you in tracking employee time when you are not there. It will also alert you to someone coming in after hours. Use this report as a proactive tool. If something falls outside the norm then question the employee about it. This lets them know you are aware and will help to prevent issues such as employee theft.

Alarm System Codes – Every employee should have their own code. Employees should not be allowed to share codes. Tell your employees that they are accountable for what happens with their code. If a theft or incident occurs because they gave their code to someone or someone saw the code, then they will be held accountable. Codes should never be simple such as-1234, 2468, a year, birth month/year combination, phone number…. Anything obvious. You might try using a person’s last four digits of their SSN. People tend to protect that number. Let them know that if their code is compromised for any reason, they must notify you and you will simply change it.

Transmission via cellular or internet – I personally love this feature. Most of the problems with alarm systems involve phone line issues. I think cellular is best. A cellular signal cannot be blocked due to a cut phone line or phone company trouble. Most alarm system cellular units hit at least two towers and many times three. Cellular connections are VERY fast. It is also more reliable than your voice cell service.

You can also send signals via the internet. This is nice because like cellular you eliminate a hard wired phone line and is more economical. But an internet connection is vulnerable to interruption and being cut just like a phone line.

There are a lot of other great services that your alarm company can provide you to fit your individual needs: supervised open/close reports, wireless sensors, video tied to the alarm system, remote connectivity to your alarm system via PC, tablet or smart phone and much more. This allows you to access your alarm or view video anywhere in the world. Many of these are not only convenient but critical in business and asset protection.

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DO YOU HAVE A ROBBERY POLICY?

September 8, 2015 by Leave a Comment

shoplifting6Like it or not, there exists a chance that your store will fall victim to an armed robbery. Why? It’s very simple. Your store has money inside. There are those that refuse to work for a living and will resort to a robbing innocent people like you and me. What would you do if faced with that situation? Would you, or your employees know what and how to react in order to prevent injury, or loss of life? Do you have a robbery policy in place that all employees are familiar with? If not, well, it’s time to put pen to paper.

Just within the past month, one of my stores were robbed by tow gunman during business hours. Two men walked into the store, approached the cash office with guns drawn and demanded our money; my money. Luckily, my employees did exactly what they were trained to do and the goons left before anyone was injured. Sometimes, retailers aren’t so lucky. There was a recent story on local news where the same situation occurred at another store and the owner fought back. Unfortunately, it ended in tragedy when the robbery turned into a homicide. That’s not something I ever want to go through.

If you’re created a new robbery policy, I’ll give you some points to consider. Most importantly, there is nothing in the store worth losing your life over. Nothing. Nada. Zip. Zilch. Everything inside those four walls can be replaced. You, your employees or a customer cannot be. In your policy, you should explain that. Train your employees to comply with all demands and get the thieves out of the store as quickly as possible. Most importantly, do not call 911. It’s going to be automatic for people to start pulling out cell phones. DON’T! The response time to a robbery in progress call will be hot and heavy. You don’t want the police showing up with gunmen still in the store. There could be a shootout, potentially hurting people in your store, or you could be faced with a hostage situation. Neither are great, so get them out of the store as quickly as possible. This is why you have CCTV cameras!

In your policy, you should also include an after action plan. For example, what on Earth is that manager, or supervisor on duty supposed to do after being robbed? As calmly as possible, close the store, and ask all customers to come to the front. Inform them that the store needs to close due to a police investigation, however if they would like to give a statement to police, they are more than welcome to do so. Next, move all of your other employees to a common area of the store, away from the crime scene. You’ll probably want to start counting money to see what was lost, but don’t. Remember that your store is now a crime scene and you won’t want to tamper with any potential physical evidence. The police will tell you when they are ready for you to calculate your loss.

Long term, you may want to contact your HR department if you have one, as there may be some employees, especially those who were the actual victim, who may need some counseling. Everyone reacts to these types of situations differently and it’s important that you understand that your employee has just gone through an incredibly stressful ordeal and may need time away from the store to process what happened. While a robbery may not be something that ever crosses your mind, it can happen. Having a policy in place and having your employees well trained on that policy can very well save a life one day. Remember, nothing inside those four walls is worth dying for.

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PROSECUTING EMPLOYEE THEFT

September 8, 2015 by Leave a Comment

theft (2)If you employ people, I can guarantee that one of them, at some point during their employment, will steal from you. It could be some office supplies, or perhaps a few reams of paper; or more commonly, money, or even your merchandise. We trust our employees from the time they are hired and throughout their tenure. Employees know our stores in and out. They know our strengths and more importantly, our weaknesses. This knowledge often leads the employee down the path of dishonesty. I’ve investigated hundreds of employee theft cases and nearly all of these employees say the same thing when they are interviewed. They say they stole because it was easy, or they had no fear of repercussions if they were caught, other than maybe just losing their jobs.

Personally, I don’t care if it’s a $3,000 watch, or a $1.50 bag of potato chips. If I have evidence that an employee willfully and purposefully has stolen from me, I’m going to terminated that employee and refer the matter to local law enforcement for prosecution. It doesn’t matter if that employee is an old man, young woman, or any color of the rainbow; everyone will get the same treatment. In my stores, it is very important that I create a deep understanding with my staff that there is a zero tolerance policy towards theft. You would be wise to do the same.

A few years ago, I came across an employee that had taken a couple of consumable items. It wasn’t much, probably under $10, but they knew they were stealing from me and did it anyway. After obtaining a written confession, I terminated that employee for theft. Due to the dollar amount being so low, I did not contact the police. Not long after, at this very same store, another employee was terminated after an investigation showed they had stolen over $10k in cash. This employee happened to be a different race and sex than that previous employee. Not long after that termination, my store received a lawsuit for wrongful termination. That employee claimed I prosecuted him based on his race and sex, and I let another employee, who was of a different race get off without being arrested. It was a long hard fight to prove our case (which we ultimately won), but it was a great lesson for me to learn. From that day, I adopted my “everyone who steals goes to jail policy”. It’s served me well ever since.

In addition to protecting yourself from employment related liabilities (like the one described above), prosecuting employees caught with their hands in the cookie jar serves one other great purpose. It’s a deterrent. It’s a huge deterrent to other employees who be entertaining the same idea. If Susie Q and I are both cash office employees and I see her get escorted from the store in silver bracelets after she stole a few hundred bucks, chances are, I’m never going to do the same. If your employees know that the consequence of stealing is always going to be jail, from day one, they are less likely to steal from you. If and when they do, you’ll be ready to set the example for the rest of your staff.

I know for some of you out there, making the decision to prosecute an employee, maybe even one of your most loyal and trustworthy employees, is a very emotional thing to go through. You may feel like you want to cut them a break and simply have them pay you back. I’m telling you from experience, that is not enough. They will eventually steal again. Moreover, your other employees will see how easy it is to get away with theft and may do the same thing. The way in which you react to catching an employee stealing should be exactly like how you get out of a bad relationship. Sever all ties, put your emotions aside and do what’s best for your financial future.

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Retail and the Digital Age

September 3, 2015 by Leave a Comment

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The retail industry has seen many changes over the years.  Online shopping has grown and will likely grow more over the next few years, unfortunately, with that comes the real and costly problem of  online fraud. Now retailers have to invest in security for their online and offline retail stores to ensure products and customer’s information are secured.  On the bright side,the digital age has brought the ability for many retail stores to advertise and sell online to many people around the country that otherwise would not be able to do before. To read more about this and other topics follow the links below.

Retail Is About to Be Reinvented, Driven by Digital Technologies

The Retail Store of the Future Will Become the Hub of All User Data.

Since around the time Amazon Prime began offering recurring orders on things like toothpaste and dish soap, people have been predicting the death of traditional retail. The ease of e-commerce, coupled with the reliability and speed of shipping, made the future of local shops and already struggling suburban malls seem grim.

Recently, though, technological advancements in near-field communication (NFC), interactive display and mobile payments have been bringing buzz back to the retail store. With this technology, marketers are merging digital and physical worlds to create seamless, predictive, personalized, and delightful environments that increase sales and brand metrics. Retail is on the verge of total reinvention. And that reinvention is rooted in the user-centric practices of today’s most savvy digital agencies.

Facebook Is Retailers’ Favorite Social Network

Pinterest also of greater interest for retail advertisers than Twitter –

Retailers don’t appear to be holding back when it comes to ad investments in social media. According to June 2015 polling, half of US retailers will be spending more on paid media on Facebook in particular. 

That’s what the National Retail Federation (NRF) found when it asked how many merchants would spend more on advertising on various social networks. Facebook had a commanding lead, but YouTube and Pinterest were also expected to see additional ad spending from 29% and 27% of respondents, respectively. Buying paid media on Twitter was less of a priority, with just 22% planning to spend more on that in 2015. Other research supports Facebook and Pinterest as bigger social shopping destinations than Twitter. UPS found in February 2015 that while 49% of US digital buyers also pinned products on Pinterest, and 48% “liked” retailers on Facebook, just 38% said they followed retailers on Twitter. 

3 Retail Technologies That Cross Over E-commerce

Ever since the retail market of the Web exploded, the expectation was that brick and mortar was doomed. For some stores, such as Borders Books and Music, it met its fate as Amazon.com marched across the bookstore landscape and chewed up most of what was in its path.

However, for the rest of the industry, the lines blurred between online and offline sales and the numbers have never been better. In fact, new mobile technologies are sending more people into stores looking for deals with the same discounts they would get online without the wait.

Online retail still smaller than offline

According to Price Waterhouse Coopers Strategy&, online retail sales still only accounts for about 8 percent of total retail sales. The major sectors that remain untouched are automobiles, gas stations, and food which are items that don’t necessarily do well online as we learned with the death of WebVan all those years ago.

Still, these categories play a major role for almost half of total retail sales. The reality is that the larger the growth of using retail technology for online sales, the better it is for some the retailers.

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Company Policies and Shoplifting

August 29, 2015 by Leave a Comment

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Many retail stores spend a lot of time and money combating shoplifting.  From loss prevention teams to anti-theft devices, security systems and many more, retailers always look for the best way to prevent shoplifting in their business.  Having your company’s policies visible and implementing them well can help your business and your management team deter shoplifting and employee theft. Communicating your company’s policies and procedures to your employees regarding employee theft and shoplifting from outsiders can protect your employees from harm and your business from lawsuits.  To read more about this topic follow the links below.

Retail Management: Policy Violations

The dynamic retail industry requires flexibility from loss prevention professionals.

Building a successful career in loss prevention has always been predicated on the commitment to professional growth and development. Working in a business as dynamic as retail, it is essential that we remain flexible in our methods and progressive in our approach to a global retail market. As the business moves forward, change comes quickly, and our retail management skills and abilities must evolve to meet the needs and expectations of a new professional standard.
But true growth must be built on a solid foundation. Especially when we consider the pace of change, we find that success is largely based on the refinement of the fundamental principles that anchor our skills and our decision-making. By expanding on our foundation of knowledge, we give ourselves a stronger and more stable base to build upon. We reinforce our futures by broadening our opportunities.

CD Shop Owner Accused in $2M Scheme With Shoplifting Addicts

​A record store owner is charged with using heroin addicts to shoplift more than $2 million worth of books, videos, and other products that he then resold online.

Anthony Cicero, 50, of East Pittsburgh, has been charged with running a corrupt organization out of his Slipped Disc record store in Oakland, a trendy Pittsburgh neighborhood home to The University of Pittsburgh and Carnegie Mellon University.

The investigation stretches back to 2008, when a Barnes & Noble investigator began tracing about $30,000 a week in stolen items to the addicts allegedly employed by Cicero, according to a grand jury presentment included with charges filed Wednesday. Cicero is also charged with theft, receiving stolen property, retail theft and conspiracy.

The state attorney general’s office said Cicero clearly knew his shoplifters — known as “boosters” — were addicts.

Cyber shoplifting costing retailers billions, driving up prices

STATEN ISLAND, N.Y. — A thief looking to scam a credit lender goes on an online shopping spree, ordering thousands of dollars worth of goods. When the bill comes, he calls the credit card company and claims they are fraudulent charges.

In good faith, the lender issues a “chargeback,” or credit, to the customer’s card, and the thief gets away with cyber shoplifting.

This crime is costing retailers up to $16 billion per year, and it’s making online shopping more expensive for consumers, as retailers pass along the costs associated with cyber shoplifting, said Monica Eaton-Cardone, co-founder and chief operating officer of Chargebacks911.

“Banks aim to keep their cardholders happy and typically assume ‘the customer is always correct.’ … [This] often leads to automatic chargeback refunds without further investigation or analysis,” she said, noting that cyber shoplifting falls under the larger category of “friendly fraud.”

“Chargebacks give consumers a loophole where they can call their bank or the merchant for an online transaction where they claim they didn’t receive the product or they could say, ‘I don’t recognize the transaction’,” Eaton-Cardone added.

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How To Combat Employee Theft In Your Business

August 21, 2015 by Leave a Comment

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A store no matter the size cannot avoid theft.  Employee theft and shoplifting are major issues for the retail industry around the globe.  Billions of dollars are lost due to this crime, and everybody is somehow affected.

The small business cannot weather the storm as well as the big retailers and could close their doors due to this issue, the honest buyer pays more their merchandise, everyone pays regardless of who commits the crime.  So, what can you do to protect your business from shoplifting and employee theft.

Owners should set good example to help combat employee theft

Q. How can a small business avoid employee theft?

A. That’s a timely question because employee theft is more likely during a recession.

The risk is illustrated by a recent news story of a chief financial officer who embezzled $9.9 million over six years. Most employees are honest and loyal but a single dishonest employee can cause large losses.

The average loss when major employee financial theft occurs is about $190,000, enough to bankrupt a small business. Small businesses are more susceptible to employee theft. Owners tend to be too trusting and either are not skilled in financial management to catch theft or don’t have time to monitor financial transactions to avoid theft. Employee staffs are small and that makes it difficult to separate financial functions among employees to avoid theft and have financial controls. Owners need to strike the right balance between employee trust, which is essential for employee loyalty, and maintaining controls to avoid theft.

Walmart’s Shrinkage Problem Is Causing Earnings Headaches And A Lot Of Excuses

Thieves are creating a massive headache for Walmart’s bottom line and the company is now regularly blaming shrinkage for much of its earnings issues.

During the retail giant’s quarterly results call on Tuesday morning, the company spoke about shrinkage throughout the conversation. Shrinkage was mentioned 13 times on the call, as the company’s team quickly blamed theft for much of its lower than expected earnings.

The company says much of its writedowns occurred for inventory that just disappeared. Walmart employees claim that customers steal everything from meat to electronics.

According to Walmart’s chief financial officer, Charles Holley, the problem isn’t about to go away anytime soon. Walmart is restarting a program to teach employees how to spot thieves and the company is auditing its entire supply chain to “close gaps” while it adds staff to parts of store’s in which items tend to vanish. In many locations, new “receipt” checkers will even make sure items are not being snuck out after someone leaves the register.

Newport Grand employee arrested, fired for alleged theft at slots parlor

​A Newport Grand employee has been arrested and fired from her cashier’s job for allegedly trying to steal $1,300 from the slots parlor.

Kimberley Albro, of 6 Union St., Warren, was arrested in April by Rhode Island State Police after Newport Grand alerted them to the theft. Albro subsequently was fired from her slots parlor cashier’s job and the R.I. Department of Business Regulation later revoked the state-required “operations employee license” needed to handle money at Rhode Island gambling venues, according to records of the two state agencies.

Albro apparently tried to get away with pilfering the money from her cashier’s drawer, but other employees noticed that her transactions were off, according to State Police Capt. Matthew C. Moynihan. A review of video recordings by Newport Grand security showed Albro taking the money.

“Security there is very tight,” Moynihan said.

Newport Grand alerted state police, who arrested Albro, Moynihan said. She was arraigned April 3 in Newport District Court on a felony charge of embezzlement of more than $100. The case remains open.

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Real Time Anti-Shoplifting App For Your Mobile Devices

August 8, 2015 by Leave a Comment

LPSI EVOLVE-Store Mobile AppWhen I look at the Electronic Article Surveillance (EAS) marketplace there are two very distinct offerings: Checkpoint Systems and the “other guys”. I realize that this is a bold and maybe arrogant statement. Despite the fact that we are the largest nationwide Checkpoint Dealer for the small to medium size retailer in The United States and yes, I do favor Checkpoint Systems, it really is a true statement.

I wish I could take you on an inside tour of Checkpoint’s facilities from R&D to Manufacturing to Support to Service and everything in between. What you would learn is that there really is only Checkpoint Systems and the “ring the bell, light the light” crowd. Checkpoint Systems is so far advanced beyond the other guys, it is mind boggling.

So now Checkpoint has moved the EAS industry further again. EVOLVE-Store puts your Checkpoint Systems in your mobile device. An app delivers real-time information through a smartphone or tablet, providing real-time visibility and engagement with your EAS & ORC theft prevention systems.

The EVOLVE-Store app will also help to improve your consumer conversion rates through real-time visibility of the number of shoppers in your store and measures your policy compliance by managing response times to alarm events.LPSI EVOLVE-Store Mobile App 2

Combine this with Checkpoint Systems VisiPlus which is retail people counting at its best and you have a substantial retail theft management system available to you regardless of where you are. Seeing theft-related events that are affecting your store in real time gives you an edge.

I have been a retailer in the loss prevention world for over 30 years. I have personally apprehended hundreds of shoplifters, investigated over 2300 retail employees for theft, built and directed the Loss Prevention program for several major retailers. But I have never seen such significant advances in such a short period of time in the loss prevention field. But what make Checkpoint Systems so different is that all of this is not just designed for the major retailer. EVOLVE-Store is an affordable program for the small single store and medium sized retailer.

If you are interested in learning more about Evolve-Store and Checkpoint Systems EAS, please contact me, Bill Bregar at 1-770-426-0547.

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TIPS TO PREVENT SHOPLIFTING

August 8, 2015 by Leave a Comment

shoplifting1I’m constantly asked on ways to prevent, or stop shoplifting by store employees and managers. They see the empty packages every day and some of them are just tired of dealing with the problem. I have some managers that think by increasing the LP headcount will make a difference, while others want to lock everything up behind glass. How do you prevent shoplifters from targeting your store? Do you lock everything up and use the newest EAS devices to battle the growing shoplifting problem? What if I told you that while EAS devices are a great resource, you can implement several programs in your store that wouldn’t cost you a single penny? Interested yet?

First and most importantly, you have to build an awareness culture in the store. You employees need to be engaged and pay attention to what’s happening around them. Look at your store tomorrow. Are you team members being unproductive, are they failing to greet and assist your customers, are they task oriented? You’re probably going to answer yes to each of those questions and that’s OK. Those are all behaviors that can be addressed and corrected. How do you make them care?

It starts at the top. From the store manager on down, there needs to be clear expectations set in terms of customer service and store standards. Employees that don’t meet these expectations should be weeded out. Customer service is the greatest tool you have. If a customer knows that they can’t walk 10 feet before being assisted by your store, they will most likely return to your store. Likewise, a thief isn’t going to want that much attention and it will drive them away.

Second, start discussing shrink and loss prevention at every store meeting, morning meeting and department meeting. Give your team the knowledge of what is being lost and when. Discuss the top 5 stolen items for the month and the top shrinking department. Talk about known shoplifters and any specific products that are being targeted. This is also a great time for department employees to share new “hot” items that the rest of the store should be aware of.

Third, have a “LP communication station”. In my store, I have a large message board in the break-room. Here, I display the month/week shrink numbers, highest shrink department and top shrink skus. I also include different shrink topics each week so the team members can always gain some knowledge. I also feature an employee each week that has done something that positively impacted shrink. Maybe it was a cashier that caught a price switch, or maybe a sales team member that deterred a shoplifter. It’s a great place to recognize their behavior so they constantly strive to continue their actions to get “featured” again.

Lastly, you need to have a good cashier training program. So much fraud happens on the front end, it’s almost unbelievable. You have customers stuffing merchandise, altering prices, using fake credit cards, phony checks, counterfeit currency, hiding product under baskets, quick change artists and the list can go on and on. A well trained cashier team is your last line of defense against fraud. I constantly hold training sessions with my cashier team. It doesn’t matter if they’ve been with me for one week, or three years. There is always something they can learn to be more aware of how losses occur at their registers. Personally, I hold a contest each month with my cashiers to see who can catch the most amount of theft/fraud. You’d be surprised the results you can get if you offer up a free meal☺.

The greatest part of all of this is that it’s completely free. You can spend thousands of dollars on a camera system, EAS devices and/or a dedicated LP team in your store and still not see the same results as you would by just implementing some of these steps. There is absolutely no substitute for a well-trained and focused employee to prevent theft.

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WHAT CAN EAS TAGS DO FOR YOU?

August 8, 2015 by Leave a Comment

shoplifting3The technology placed in retail anti-theft devices seems to change and evolve every month. Every time I go to an expo, or browse online, I always find new and exciting tools to reduce shrink and protect the financial investment I have in my inventory. Most people assume that EAS devices are there to stop a shoplifter, and while that is absolutely true, they can also be used for training your employees.

In a perfect world, I would hire a cashier and they would be familiar with every item that I sell in my store. They would know the difference between a $20 fishing pole and a $200 one. They would be able to tell the difference between a $250 paintball marker and a box of paintballs. In reality though, they do not. So how do I get my cashiers to think like an LP? It’s easy… I make it dummy proof.

My store carries a good selection of offshore fishing rods that are easily over 6 feet long. Nobody is putting these bad boys down their pants and walking out the store. I still secure them with an EAS device. Same goes for those big expensive coolers. Those aren’t simply walking out of the store, but I’ve got EAS tags on those too. To some, this may be unnecessary and a waste of the resource and tools. To me, though, it’s one more way I make it easy for my cashiers to know what they are scanning.

Just the other day, one of my cashiers called me over for a customer that was trying to purchase one of those big fishing reels. Problem was it was scanning at the register for $14. These retail for $199. How did the cashier identify the fraud? It’s because she was trained to identify the retail anti-theft device placed on the rod. She doesn’t have to know a single thing about offshore fishing, but she sure as heck knows that if it has that security device, it will cost more than $100!

While EAS devices can and will deter a shoplifter, that doesn’t always account of all the other types of theft that criminals will come up with. Price switching is a very common fraud scheme and with inattentive and untrained cashiers, you could be opening yourself up to substantial losses. While it’s highly unlikely that someone will attempt to conceal a tennis racquet, there will be those who will attempt to alter its pricing indicator. Be ready for them next time with this simple, easy and effective way to leverage your EAS assets in a way that you may not have considered before.

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EMPLOYEE THEFT MOVES INTO ONLINE MARKETPLACES

August 8, 2015 by Leave a Comment

theft (13)This past month, I closed out one of the biggest employee theft cases of my career thus far. While it was quite exciting and a huge win for my team, it left a lot of questions about our internal controls, that after this case, surely must evolve. Lots of people that I come into to contact with really misconstrue the facts regarding employee theft. You’ve heard the phrase before… “You have more internal theft than external theft.” Every time I hear this phrase, I find myself trying to educate the manager on this. While most people assume that 75% percent of their employees steal, realistically, only a very small percentage of employees engage in this behavior. Those that do though, create a substantial financial loss to the company.

As part of my investigative routine, I normally check online sale sites for possible stolen merchandise. Selling stolen product online is most likely to quickest and easiest way to get rid of goods in a hurry. As I was browsing through I noticed a pair of wireless headphones that had just hit our stores. Interesting enough, the item still had our company markings on it. From there I was able to quickly identify the geographical area and before long I was able to identify the owner of the page. That owner was a warehouse supervisor at one of my stores.

Well, it didn’t take long for me to find quite literally, hundreds and hundreds of items either that had previously been sold, or were up for sale on this website. Lots of these items were electronics such as cameras, headphones, accessories, phone cases and other large bulk product such as coolers and outdoor furniture. Looking at the store’s inventory I could tell that some of the product had in fact come from that location. Over the course of several weeks, I initiated several online purchases. Most were for electronic devices that had a serial number. Once received, I was able to determine that the items did in fact belong to that store and those particular items were not accounted for. I had made my case.

How was this associate getting this much product out the door without anyone noticing him? I still didn’t have that piece of the puzzle. Without enough ammunition for prosecution, I interviewed this supervisor to determine how he was obtaining this much product. I knew it was stolen, I just didn’t know by whom and in what manner. What I uncovered during this interview was one of the most sophisticated and organized theft operations I have seen in my career.

That particular store was also a hub warehouse. This means that online purchases made by customers in a certain geographical area would be sent to our store and warehouse to fulfill. This of course gets the item to the customer much faster than going through our centralized distribution center. Once the order was filled for a customer, it would be packed and set in a designated area and a private mail delivery service would pick up once a day.

The supervisor had gained access to the shipping account, so he was able to ship product out without anyone second guessing the boxes. At first, according to our records and his online account, he was shipping merchandise directly to his customer’s houses. He said that he thought that was a bit risky and ultimately began shipping massive quantities of merchandise to a vacant home close to his. Each day, he would pass by and take the packages from the porch. From there, he would run his online store. This had been going on for the past two years. This one employee, working alone had taken nearly $250K worth of merchandise over this time period.

With the dishonest employee out of our store, we focused on what went wrong. We began a program of inspecting all boxes and shipments prior to them being sealed and implemented a system that a number of shipping boxes each day could be verified. We also set up exception style reports that showed any time a delivery was sent to the same address more than 5 times a month. This was a costly lesson for us to learn and hopefully with better controls and more oversight, it will never happen again.

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