Alpha Spider Wrap

Why You Should Always Prosecute a Thief

March 30, 2015 by Staff Editor Leave a Comment

Throughout the last few years, I’ve encountered and had the chance to network with several small business owners in my community. Most of these encounters were a part of a retail/law enforcement partnership. It always seems that these smaller stores have the same shoplifting problems as the big box retailers, but with one key difference. Those small stores don’t have the sales figures to cushion them from losses. If I compared my store (a large national retailer) to a smaller store in the same shopping center, and that smaller store has even ¼ the loss I see, that could be devastating to their ongoing success. Part of the problem is that smaller stores are less likely to prosecute a shoplifter, which makes them a very soft target.

The case for prosecuting every shoplifter is strong. You can look at every major retailer across the country and they all have large Loss Prevention departments with the goal of prosecuting everyone that steals from them to the fullest extent of the law. Why do they do this, and better yet, why should you? First, it sends a very clear message. You will not tolerate stealing your hard-earned money, and if you come in my store and steal, you will go to jail. Second, it keeps prices low for your customers, and shrink low for you. Finally, if someone steals from you and damages your product, even if you recover it, you’re still at a loss. By prosecuting that shoplifter, you are entitled to recover what has been lost during that particular incident.

It’s important to send a message to shoplifters. Believe me when I tell you that shoplifters share trade secrets. Not only does word travel on the new item to boost, but where the easiest place to steal it is. Shoplifters are like water, they travel the path of least resistance. If they know that the small store up the road won’t call the cops if they are caught, then that’s where they are going. It’s basically a win-win for the thief. They can either come into your store, steal and get away, or they can get caught with no real consequence and be released only to try again. You have to take a stand against their criminal acts and show them that you will not be victimized by their actions. Money:
We all like to boast our low prices. You can’t have a successful business if your prices are significantly higher than your competitors. Well, shoplifting affects your ability to keep prices low. If you are logging loss month, after month, you’re going to have to raise your prices in order to make up for the losses. This may help in the short term, but over time, customers will seek out the best deal for their dollar. Prosecuting a shoplifter keeps that merchandise in your store, it keeps the product available for your customer and it ensures that you stay in the black.

Money: You’re in business to make money. When a shoplifter steals from you, they are taking money out of your pocket, and food off of your family’s table. Let’s imagine a shoplifter steals a pack of steaks from you. Maybe they put the food down their pants, but you catch them at the door and get your steak back. Would you really put that food back out for sale? Probably not. If you didn’t file charges against that shoplifter, he was able to still cause a loss to your store. By prosecuting this individual, you will be able to collect, through the court system, what is rightfully owed to you. You wouldn’t allow someone to come into your home and steal your TV with no consequence, so why let them do it to your business?

Every time I have the chance, I bring up these points to whomever will listen to me. What I see the most is small business owners being afraid to prosecute a thief for various reasons. The most common is the reluctance to go through the judicial process. I know… the wheels of justice turn very slowly these days, but that’s no excuse to let a thief go un-punished. Your business is your life blood, it’s how you feed and provide for your family, so next time you catch that shoplifter stealing your hard earned money, make sure that they are prosecuted to the fullest extent of the law.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, Loss Prevention Training, Shoplifting Prevention

The 3 Essentials for a First-rate Loss Prevention Program

March 11, 2015 by Staff Editor Leave a Comment

It’s never been more profitable to be a shoplifter. In the past it was difficult to make money from stolen merchandise. A thief commonly used a third party or “fence” to offload the product. Fencing was a secretive, high risk job and “average” shoplifters had no way to establish a connection with one. If they did have one he got a share of the profits, often the biggest cut.

But, the internet has dramatically changed this process. It allows shoplifters to function as their own fence. They’re able to eliminate the middleman and sell directly to, usually, unsuspecting people. Selling stolen goods is easier, safer and more profitable than ever before. Therefore, shoplifting is on the rise and, to stay in business, stores have to be diligent when creating a loss prevention program.

There are 3 main essentials needed for a successful loss prevention program. The 1^st and most important is proper store management. This topic is thoroughly discussed in other articles on this site. But, while vital, good management goes only so far. Ultimately, an effective plan also includes 2 other essentials – towers coupled with security labels and hard tags.

Towers are the 2^nd essential piece of a successful security plan. Checkpoint System is the leading provider of towers. Checkpoint’s towers are plastic or metal structures and are positioned on both sides of an entrance. They sound an alarm when an active Checkpoint tag or label, which is attached to the merchandise, passes through them. Many shoplifters will by-pass a store with towers and, instead, target one without them.

A 3^rd essential is hard tags and labels – Checkpoint has many types of each. Tags are applied to items such as clothing, shoes, and purses; they need a special tool to be removed. Some tags are filled with ink and will open if not properly removed. Labels are attached to things like books, DVDs, cosmetics and are deactivated at the point of sale. When shoplifters see a label or tag, they’ll often move on to merchandise that’s not so well protected.

Making a store a difficult target can keep thieves out of it, which creates a more pleasant, safer environment for employees and shoppers. Just as importantly, Checkpoint can be the difference between staying in business or closing the doors. Checkpoint System, coupled with security savvy management, can go a long way towards producing a profitable store.

Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction. She’s an educator, consultant, lecturer, trainer and facilitator, who has conducted over 200 workshops, trainings, presentations, college classes and seminars.

Video Surveillance In Your Store

March 9, 2015 by Staff Editor Leave a Comment

Surveillance in your store can be a big deterrent for shoplifting and employee theft. The knowledge that your store is protected, or at least that there are cameras capturing images of employees and customers, can help you save thousand of dollars yearly. Employee theft is costing the retail industry millions of dollars every year and installing a type of security in your store can help you reduce the shrinkage you are experiencing.

For more about shoplifting, follow the links below.

Surveillance best cure for shoplifting

Aside from the holiday seasons where people aimlessly weave through cart-to-cart traffic down aisles in department or convenience stores, it’s difficult to predict when there will be spike in theft.

Particularly, shoplifting.

As of Friday, the Hutchinson Police Department has worked two cases of shoplifting this month. Granted, only nine unpredictably cold and not-so cold days have scooted by in March. But January and February were hot months for shoplifting with officers responding to 61 combined reported cases of shoplifting, according to Hutchinson Police bulletin archives.

There were 24 reports of shoplifting in December. Numbers from the archive bulletin suggests the shoplifting occurs at three of the most recognizable stores in the city: Wal-Mart, Dillons and various Kwik Shops.

Hastings, Target, J.C. Penney and Kohl’s are also sprinkled on the list of popularly shoplifted stores.

But why the heart-monitor like spike in thefts recently? Police Lt. Martin Robertson isn’t sure of the answer himself.

US based company allows shoplifters to avoid the police by charging them for an online course

IN THE game of Monopoly, there’s nothing better (apart from maybe winning free parking) than turning over that community chest card to see the words “get out of jail free.”

Now imagine that someone hands you that card after you’ve committed a criminal act in real life.

That is essentially what one company based in the United States is doing.

The Corrective Education Company (CEC) is a start-up, and works with businesses to offer shoplifters an alternative path to reform other than the boring old legal system.

Founded by a pair of Harvard graduates, it offers the chance for apprehended shoplifters to pay $411 ($US320) in order to avoid a phone call to the boys in blue.

That money goes towards the cost of attending an online course which is run by CEC that claims to reduce the likelihood of recidivism for the individual.

The obliging shop owners who refer the shoplifters get a cut of about $US40 per offender, and according to Slate around 20,000 offenders have so far coughed up for the program.

That works out to be $7.2 million that CEC has profited by blatantly circumventing the established judicial system.

Walgreens Shoplifting Duo Captured On Surveillance

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, anti-thefts devices, Prevent Shoplifting, prevent shrinkage, retail security and monitoring, security devices, surveillance

Vendor/Contractor Fraud

March 2, 2015 by admin Leave a Comment

I want you to sit back and think about something for a minute. Other than your employees, how many other peopled have worked in your store last month? Drawing a blank? Think about those lights that needed replacing, or the compactor that needed repair, or even the new display cases that were installed overnight a few weeks back. While you may realize it, you more than likely have a great deal of contactors coming in and out of your store on a fairly frequent basis. These contractors and vendors have access to everything and employee has and sometimes more.

Not only do you have to consider product and equipment theft, what about data or intellectual property theft? Company sales figures, or closely guarded industry secrets? A single thumb drive and a bit of know-how can get a wealth of information into the wrong hands. Thinking about all of that, you probably want to repair your own sinks from now on…

Just as with any LP process, you have to implement a strategy that allows you to identify and react to theft, all while maintain the trust of the 99.9% of your customers that are honest. A few simple policies and best practices can protect your business from vendor/contractor theft.

First, you should establish a check in procedure. Vendors, or outside contractors should have to check in with the manager and then be taken to the area of the store that requires their services. If the area is a sensitive section of the store, or requires an exterior doors to be opened for an long period, a supervisor or key employee should remain in that area. In addition, a simple package inspection policy should be adopted and all employees, and outside vendor should be made to adhere to that policy. Basically, anyone exiting the store that works for you would have any bag, or box inspected by a store manager prior to them leaving the store.

An electronics policy should also be adopted around sensitive areas of the store. Vendors, as well as employees should be barred from using an external hard drive on any store computer system. Recording devices (cellphones) should not be allowed in sales offices, or anywhere that sensitive data is stored. You should also restrict any store Wi-Fi to store management only, and for the sole purpose of conducting company business.

While it may not be an area that you closely associate with shrink and loss, vendor compliance and control can become a major contributor to lost profits in your store. By implementing a few simple steps and practices, you can sure that you are doing all you can to prevent unnecessary loses to your store and company.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-thefts devices, EAS Devices, Employee Theft, Retail Anti Theft Devices, retail security, retail security and monitoring

Economic Efficiency Award- Alpha Nano Gate

February 2, 2015 by Staff Editor Leave a Comment

When you are a small retailer, you are constantly on the look out for ways to reduce your overhead. Finding a cost effective way to prevent shoplifting is beneficial in not only reducing your operating costs, but to also increase your revenue through maximizing inventory availability.

One of the more cost efficient retail anti theft devices is the Alpha Security Alpha Nano Gate. The “Best Retail Product” award winner for economic efficiency in 2012, the Alpha Nano Gate is a small footprint antennae designed as an alternative to the larger EAS pedestals commonly found in the retail sector to prevent shoplifting.

The small design is easily installed with six screws and a battery to back up the system in case of power failure or intentional tampering. This design makes it easy to be installed into the smaller entryways often found in specialty boutiques and locally owned retail establishments.

The device literally is plugged in and ready to go. Without a need for a service contract, bulky wiring, or tuning, it is easy to see why these retail anti theft devices won their award in the economic efficiency category.

Visit the Loss Prevention Store for Alpha 2Alarm, Alpha 3Alarm, Alpha Fashion2, Alpha Jewel Lok, Alpha Nano Gate, Alpha Shark Tag, Alpha Spider Wrap and other retail anti-theft devices from Alpha Security to use in conjunction with your Electronic Article Surveillance or EAS system that can help you prevent shoplifting in your business.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: Alpha Fashion2, Alpha Jewel Lok, Alpha Nano Gate, Alpha Shark Tag, Alpha Spider Wrap, Fashion2, Jewel Lok, Nano Gate, Prevent Shoplifting, Retail Anti Theft Devices, Shark Tag, Spider Wrap

What’s Trending in the World of Shoplifting?

January 8, 2015 by admin Leave a Comment

Wouldn’t it be nice if the criminal world was as easy as Twitter? You could just go online and look at what’s trending and then take proactive steps to stem any potential losses. That would be great! Unfortunately, criminals, especially thieves rarely broadcast their intentions. It’s up to the loss prevention community and local law enforcement to share these trends amongst each other in order to combat shoplifting.

You may or may not be aware, but shoplifting is much more than just putting one item in your purse, or pockets. I routinely see individuals and groups operating some very sophisticated fraud schemes in order to remove product from the store. One of those trends that have become more and more prevalent over the past year has involved refund fraud. I had a very complex case that spanned several months that was more sophisticated than anything I had every come across in all my years conducting Loss Prevention Investigations.

The basic storyline is that a brick and mortar store front was employing individuals to target stores for small, high dollar merchandise. Once the product was stolen from one store, it would then be brought to a second store where a refund was given for the product in the form of store credit. That individual would then utilize that credit in order to purchase a high end electronic item. The item, along with the receipt was sold to the store front. This is where it takes a more complex turn.

The store owners would then arrive back at the store with the receipt and electronic item and ask to exchange it for other product. This was routinely conducted with footwear or apparel items. The store owners would conduct the exchange and, on most occasions, pay a difference in cash of anywhere between $10 and $20.

Over several days, the store owners would return to my store and refund each item that was purchased during that exchange transaction. Since the receipt showed they paid a cash balance, inattentive store personnel would always give them a full cash refund. Did I lose you?

Essentially, I was at a loss 5 times for the same product. First it was stolen. Second, I gave them a store credit for stolen goods. Third, the store credit was then spent. Fourth, the product the credit was spent on was exchanged for additional merchandise. Fifth, we gave them cash. It was incredible once it was all uncovered. This group has figured out a way to essentially launder stolen goods and with a few steps and some patience, get cash. All while keeping the appearance of a legitimate transaction. All told, our stores lost well over $100k to this scam.

It was an expensive lesson to learn, but it goes to show just how creative people can be when it comes to fraud. While this was the first time I had ever seen something of this complexity, I can assure you that in the next year, someone will come up with an even more complex method to defraud retailers.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-thefts devices, Employee Theft, Loss Prevention Seminar, Loss Prevention Workshop, Prevent Shoplifting, prevent shrinkage

Post Christmas Blues

January 5, 2015 by admin Leave a Comment

Well, the 2014 Holiday Season is over; now we are dealing with the post-Christmas issues, returns, inventory and tallying up how we did! Even without official numbers you probably have an idea. Are returns higher than what you expected? Did shoplifters get more than what you were prepared to lose? One of the problems, we as business owners face, is that we get ramped up for sales but we tend to put off preparing for loses. We tell ourselves that we will get to it later. Then when that B or C priority rises to the level of serious loss, it is too late. But we all do that, with many things. It is part of running a business.

Eventually we get tired of dealing with something over and over again and decide to break the cycle. What is the saying? “Doing the same thing over and over but expecting a different result, is the definition of insanity”. Thieves will not go away, in fact they will only get worse unless you deal with them head on with real business solutions. Shoplifting and employee theft are actually very simple issues to address. You will never eliminate them completely, however, you can reduce them to an expected level balancing the cost and effect.

Many retailers do not realize that they can and should attack both issues internally first. Take a look at your procedures. Step back and look at them – I mean truly LOOK at them, hard. Why are you doing something the way it is done? Is that the reason for your losses? A good example may be your cash handling procedures. Is your till generally short? How much? Why? If your policy is that you do not make an issue out of a drawer that is $15 or less short, then you have sent the message to your employees that they can steal or be careless up to $15. Fifteen dollars multiplied by 365 days a year is A LOT of money to any retailer, large or small. All of this because of your “procedure” or attitude.

How about shoplifters? Do you really know how to prevent and stop them? Do you teach this to your employees? If you don’t you can never expect to be as profitable as you can and should be. Shoplifters will react to your efforts by going elsewhere. That is what you want. This allows you to spend more of your resources and human capital on your paying customers. Sell more, lose less should be your motto!

If you want help, we are here for you. If you do not, that is OK also. But you can fix your losses.

We wish you a great and prosperous 2015!

Filed Under: Featured Tagged With: Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, anti-theft tags, anti-thefts devices, Loss Prevention Seminars, mobile POS loss prevention, Periodic inventory, Perpetual Inventory, Prevent Shoplifting, prevent shrinkage, racial profiling, Retail Anti Theft Devices, shoplifting, Shoplifting Prevention

The 80/20 Rule

January 5, 2015 by admin Leave a Comment

The 80/ 20 rule for retail is actually a series of rules, or guidelines to how and where your inventory shrink comes from. Once you drill down to see what is actually driving your shrink, you have the ability to implement much more efficient anti theft and anti shrink strategies.

The first part of evaluating the 80/ 20 rule is to determine a generalization of how your store is incurring losses. There are three main areas of shrink loss that all shrink can be categorized as. They are Internal, External and Operational shrink. As a rule of thumb, internal shrink is explained as asset losses intentionally carried out by an employee of the store. Employees who are stealing merchandise drive internal shrink.

Operational shrink, on the other hand, is merchandise losses carried out by an employee unintentionally. These are the store’s operational errors that end up causing losses. Did an employee accidentally miss an item when they checked a customer out? Did an employee pull some glass cleaner from the shelf to clean their workstation, but not record it on a store use log? Did an employee break an item of merchandise beyond repair and threw it in the trash without letting anyone know?

These are all everyday examples of how an employee can unintentionally cause losses. These are not theft related actions that we would arrest and prosecute and employee for, but the end result is still the same. We are now showing missing merchandise and our bottom line has suffered from the shrink loss. Unidentified items missing from freight shipments also fall into this category.

External shrink losses are created by anyone outside of the company. These are non-employees who steal our products- the shoplifters. The average shoplifter steals much less per incident than an employee does. Even if you have a higher frequency of shoplifters in your store, employee theft will still outweigh the losses caused by shoplifters over time.

While it is really up to you to determine the actual breakdown in your store, most retailers average about 40% of their losses from internal theft, 40% from operational errors, leaving only 20% to external theft. Obviously these numbers can change based upon your location, kinds of goods sold, and staffing sizes. Overall, these numbers equate to about 80% of your shrink is derived in house (by your employees), and 20% comes form external sources.

Next you want to drill down even further into your losses by looking at departments, and the individual items that are being stolen. Ideally you want to have an inventory system that allows you SKU level accuracy. By drilling down to the actual item number that is shrinking out, you can create an action plan suited specifically to that item. At the very least, you should know which departments and product assortments are the highest losses.

Once you determine your highest shrink items, you should know the quantity and/ or dollar amount lost. You can then put your efforts into where the biggest losses are. You might be loosing 100 packs of gum that cost $1.00 each, or you could loose one handbag worth $200. Frequency versus actual dollar amount lost might dictate a closer eye on your handbags, than the multiple losses in packs of gum.

By taking a look at the highest dollar losses, you should see that about 80% of your total shrink losses are coming from only about the top 20% of your shrink items. This drill down approach further streamlines your anti shrink strategies. Now, instead of focusing on every little loss that occurs in your store, you can focus on only the top items. By creating feasible reduction strategies on only those items, you can create a significant reduction in your store’s overall shrink losses.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, internal Audit, Loss Prevention Seminar, Loss Prevention Workshop

Merchandise Availability- Alpha Security

January 3, 2015 by Staff Editor Leave a Comment

When we look at ways to prevent shoplifting, we are really trying to do is to increase our merchandise availability. Sure, no one really wants thieves and crooks taking advantage of our businesses, but the bottom line is about maximizing our availability to increase our revenue from customer sales.

Retail anti theft devices, such as the one developed by industry leader Alpha Security, are tried and true tools specifically created to prevent shoplifting. As shoplifting decreases, our inventories become more accurate and more plentiful (due to a lack of missing merchandise). We, as retailers, spend significantly less time worrying about whether or not we have a particular item in stock, and more time getting the customers to actually buy them.

When customers can walk into a location and find the item they want, and the quantity they need, sales increase. Taking it one step further, you also get the advantage of repeat business. The customer knows they can rely on your retail location to be in stock for their consumer needs. By reducing theft through the use of Alpha Security retail anti theft devices, you assure you have the right in stock availability to satisfy your customer’s needs.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547

New In Box-Alpha Spider Wrap

December 31, 2014 by Staff Editor Leave a Comment

Some inventory items are valuable only if they can be resold as NIB or New In Box. Any damage to the box, or a lack of tags is an indicator that the product is either used, or stolen- both of which reduces the resale value as well as the actual ability to be resold. Other items can be sold without the box. In those cases, the Alpha Security Alpha Spider Wrap is an effective deterrent.

Power tools are a good example of an item that does not need to be sold new in box. In some cases, it is even easier to sell power tools if they look to be slightly used. These tools are taken to construction sites and sold with a story that they no longer need them, or they didn’t like the tool and bought a different one.

The Alpha Spider Wrap retail anti theft devices prevent shoplifting by keeping the power tools in their boxes. This makes them harder to steal. A large box is more obvious walking out a door, than a power tool tucked inside of a coat. If the Alpha Spider Wrap wires are cut to eliminate the tools packaging, an audible alarm is activated, alerting everyone around that the box is being tampered with.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547