Caught A Shoplifter? Now What? To Prosecute Or Not

March 31, 2019 by Leave a Comment

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.

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An Investment For Your Business

March 13, 2019 by Leave a Comment

When new legislation passes in many states, the array of issues that come to new elected officials varies considerably.  

Shoplifting laws are one of the many topics legislators review to make sure the punishment is appropriate.  Businesses and small businesses in general need to be protected by the laws of the country to ensure the economic growth of a locality, the state and ultimately the country.

The punishment for shoplifting varies according to the state and in some instances the county where the business is located.  Laws are put in place to make sure these silent crimes are not committed with impunity, and the shoplifter is prosecuted according to the law. 

Unfortunately, many of these shoplifting incidents are not prosecuted for  many different reasons. Ultimately, it is up to the business to decide whether to prosecute the shoplifter or not.  As a business owner, they have to consider the costs associated with prosecuting shoplifters as a rule and whether it is economically sound to do so.

A lawyer’s fee for an hour or to prosecute a case depends on the region, the experience and the complexity of a case but, either way, their fee does not come cheap. 

 As a business owner, is it practical or economically possible for you to have a privately retained attorney? Is it your business practice to prosecute a shoplifter regardless of the quantity they steal?  There are many questions one needs to answer, and many options you have to make as a business owner regarding shoplifting.

Shoplifting in the United States have become a multi billion nightmare for businesses in the retail industry.  From the casual shoplifter to organized retail rings, the losses the retail industry suffers are staggering.  The small stores or shops in this industry have to fight and stop loses because their livelihood depends on their ability to stop the shoplifters. The profit margin from sales is too small for them to ignore the problem or to neglected it for too long.

For many of the small retail businesses, a loss prevention system that allows them to protect their merchandise and profits is one of the best ways to invest in their business.  Big retail chains have for many years now invested in loss prevention systems to help them minimize the losses and help them prevent shoplifting and employee theft. 

A loss prevention system that gives the employer or management of the store up to the minute information about the merchandise , allows them to do their job more efficiently and helps them prevent theft is an investment that will pay off sooner than you think.

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Keep Shoplifters From Stealing Your Holiday Spirit

November 30, 2018 by Leave a Comment

It’s here! The holiday season and there is a spirit of goodwill that hopefully we all share towards each other. For retail owners and managers the joyful spirit is boosted when sales are good as customers are buying gifts and purchasing foods for baking and holiday meals. For the most part people seem to be a bit more patient towards each other (except maybe in a mall parking lot where drivers fight for the best parking places). It really is the most wonderful time of the year!

Unfortunately there are real Grinches out there who, for their own nefarious purposes have no compunction about committing crime that can steal your holiday spirit or that of your customers. These crooks create havoc for a store by stealing the hottest merchandise on the market or the most expensive merchandise. They may come in and take the latest video games off your shelf. They may be walking out in a new pair of sneakers or loading a couple of bottles of Grey Goose vodka under their coat at $70 a pop and waltzing out the doors. The impact is not isolated to the financial loss you experience from that particular item. The theft of your merchandise has a snowball effect that is magnified through the loss of additional sales.

I like to think of the impact of one shoplifter like the ripple effect of a rock tossed in a pond. The rock makes a splash that disturbs the water. The impact is immediate as the affect is seen with the splash. Then there are the waves that travel out from the point of impact. The water is disturbed far removed from the original landing point. When that shoplifter steals a video game you lose the $60 immediately. This is your cost plus the profit that you would have made. Now a customer comes in who wants to buy that game but it is gone and you lose a sale. You could make the argument you really have still lost only the $60 but wait a minute. You lost this sale and may have lost that paying customer from making future purchases at your store. This is the first ripple. Then no one on your staff notices that the empty spot for the game is there. They assume it was sold and wait for replenishment. How long does the store go before action is taken to replace the game? Now you have no idea how many other customers came in and did not bother to inquire about it because it wasn’t on the shelf? How generous is your return policy? Can the thief bring the game back unopened and get cash or a gift card? Now you are paying for the merchandise you already bought. You lose TWICE! The impact can be greater than even the confines of your store. Does the criminal trade it for illegal drugs and the drug dealer sells it online or to a mom and pop shop where you are undercut? That gift card may be sold online too by the way. In a sense one theft is supporting other illegal activities.

I don’t want to steal your holiday spirit but I do want you to understand that if you are not actively protecting merchandise from shoplifters they WILL steal your spirit and your merchandise. The sad part of this story to me is that many store owners could easily thwart shoplifters through a few relatively easy steps. First and foremost is a purchase of a Sensormatic security system. It is affordable! Too many owners look at it only as an expense and they don’t understand the benefits in shortage reduction. They work and they do significantly decrease theft in the store. The other step is to build a culture of customer service. We talk about it all of the time in retail but it has to be a genuine core principle in a store. Greeting customers as soon they walk into the building with a real hello is a start. Spending time finding out what they are in the store for is the way to sell and help accessorize purchases. The added bonus for the store is the deterrent effect that service has on shoplifting.

Retail crime does steal the joy from store owners and customers alike. The shopper is prevented from buying the special gift that a special person had their heart set on. The business owner is deprived of the merchandise and deals with the lingering effects of the crime. Take my advice protect merchandise with anti-theft devices, a Sensormatic security system and make customer service a priority in your store. You and your customers will truly feel the spirit of the season!

      

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Employees are harder to find should this impact the way you conduct seasonal hiring?

October 31, 2018 by Leave a Comment

As of September 2018, the national unemployment rate is down to 3.7% according to ncls.org. As a retail store owner thinks about what this means for you in terms of trying to hire to fill job openings including seasonal hiring for the holidays. With an employment rate of 96.3% that leaves a sparse workforce as a hiring pool. I have read articles by those who think that with a dwindling number of people seeking work employers are going to have to forego pre-employment background checks. They seem to believe that the need to hire outweighs any baggage the job candidates bring with them.

     Not only are employment background checks being called into question for the reasons stated above there is also a school of thought that pre-employment drug screening may be a bad idea. This line of reasoning includes the limited availability of candidates in the workforce but also suggests that the increased legalization of marijuana use in some states is negating the reasons for having applicants take the tests.

     When taken together think about what it means to the retail employer. Store owners are required to rely on the information supplied by a candidate to make hiring decisions. Screening consists of the responses of the candidate to your questions during an interview and perhaps a couple of recommendations from their list of references. How confident are you in the references provided? Do you know if they are going to be honest about the character of the person you are considering for the job? How many of us really put down a reference who we think will not speak well of us? You also bet on the roll the dice whether your new hire is a drug user. Fail to a drug screen and the chances increase for accidents and even theft. Both theft and accidents can be costly in the long term, whether the employee is a seasonal worker or regular hire. Employee accidents can result in workers compensation claims. Accidents involving a customer as a result of an employee’s negligence can result in a lawsuit against your business.

     The question you need to answer is whether it is worth changing your hiring practices to ramp up your seasonal staffing needs? The short answer is no, you should not modify or change tried and true methods of hiring. Those methods help you bring in new help and reduce your exposure to safety and shortage risks. Pre-employment background screenings can be tailored to meet the criteria you want them to assess so you may review what you are screening for and eliminate some of the categories that may not be as important for a part-time worker. For instance, if a driving record check is part of your normal pre-employment screening is that necessary for someone who will work in your stockroom for a few months? You might not really need to validate someone’s education level if you are only hiring them for the season and they do not intend to apply to stay after that.

      Likewise, a credit history, criminal background check, and review of the sex offender registry are the minimum three searches I recommend every store owner require of applicants regardless of the amount of time they will work for you. The credit history should be checked in case your prospective employee is in dire financial trouble. He/she may see this job as a means of extricating themselves from their problem. The criminal history should be checked because it could include everything from assaults to theft. You don’t want someone prone to violence working around other employees or customers and have them lose control. Nor would you want a convicted thief working around merchandise and/or cash. The sex offender registry check speaks for itself. You are responsible for the safety of all of your employees and your customers and the risk of hiring a person on the sex offender registry is too great to consider.

     Seasonal hiring may be a bit more of a challenge when the economy is strong but it is no reason to discard proven methods of shortage reduction. Holidays also tend to be times of increased safety issues. Drug testing and pre-employment screenings are an effective means of maintaining a safe work environment. Don’t lose sight of the fact that there are a lot of people who are looking for a seasonal job simply for a little extra spending cash. There are also young people looking for that first job experience and a paycheck. You may have to find new ways to get the word out about your positions but don’t fret, there is always an honest person looking for a job (or a second one).

     

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Thanksgiving – Pros and Cons of the shift of Thanksgiving sales from Friday to Thursday

October 31, 2018 by Leave a Comment

Traditionally Black Friday has been the kick-off of the holiday shopping season. Families spent Thanksgiving together dining, celebrating, catching up with each other and maybe even watching a football game on television. Early Friday following Thanksgiving store employees would start reporting to work preparing for early openings which often took place at 6:00 am. Retailers had advertised their Black Friday specials (Door Busters) and customers would start queuing up at the doors ready to find bargains. The shopping would then continue into Saturday and even Sunday patrons continued to look for bargains to stretch their dollars further. Then something began to happen, stores started competing for those dollars by opening their doors earlier and earlier. We ( I did this for quite a few years) would report to work and 3:00 am for a 5:00 am store opening. The next year we moved to 2:00 am arrival for a 4:00 am opening. Today stores are opening their doors on Thanksgiving Day. There are Pros and Cons to this shift that I think is worth exploring in a bit more depth.

Pros to an opening on Thanksgiving Day:

  • Shoppers are going to stores on Thanksgiving, according to the balance.com in a story, “What Is Black Friday? Sales and Trends” by Kimberly Amadeo, updated June 20, 2018, 29 million people went shopping on Thanksgiving Day, 2016. That is a significant number of shoppers to just ignore.
  • According to bestblackfriday.com, 16.22% of Americans said they are in favor of stores opening on Thanksgiving and 5.60% were strongly in favor of it. “Thanksgiving Day 2017 Shopping Survey and Analysis”, Nov 4, 2017, by Phil Dengler. Americans may say they are against it but go out shopping anyways.
  • Bestblackfriday.com also reported that “younger Americans favor stores being open on Thanksgiving more than older Americans do.” Appealing to younger shoppers could be a way to increase their patronage on Thanksgiving Day.

Con’s to an opening on Thanksgiving Day:

  • Being open on Thanksgiving can create problems for retailers trying to generate sales on Black Friday as well as Thanksgiving. According to a New York Times article, “More Retailers Are Choosing to Close on Thanksgiving”, by Rachel Abrams, Nov 15, 2016, there are problems in keeping store shelves full for Black Friday and Thanksgiving Day.
  • The same article points out that stores can give a bad impression to customers if they come in on Black Friday and shelves are empty and employees seem to be exhausted. Joel Alden a partner in a retail consulting firm is quoted as saying, “If you do a lousy job over the Thanksgiving period, it may be a while before those customers come back and visit you again.” 
  • “…retailers that open Thanksgiving risk backlash from consumers who would rather the day be preserved for family get-togethers” according to a story in Richmond.com, written by Tammie-Smith, Richmond Times-Dispatch, Nov 23, 2016, “Retail employees working Thanksgiving as stores offer customers some of the biggest sales of the year”

There is finally a mix of feelings about working on Thanksgiving from the employees who have to work when their company chooses to be open on this day. Some are unhappy that they are expected to work when they would prefer to be enjoying the time with their families. There are those employees who prefer to work the holiday for the extra pay they receive. An article from floridatoday.com “Working retail on Thanksgiving: Here’s the scoop”, by Ilana Kowarski, Nov. 26, 2014, provides a glimpse at this split between retail worker opinions. One employee was quoted as saying she wanted “…to make more money for my family, and that’s on me.” A bit further in the article though another employee said, “Corporate greed drives the business to stay open and, therefore, forces us to work on holidays.”

     So what’s the answer? It would seem there is no right or wrong answer, only pros, and cons for the retail owner to consider. Balance the benefits of opening on Thanksgiving with the potential problems that may arise from doing so. Perhaps the best answer you can get is to talk with your employees and find out what their thoughts are on the subject. If enough workers are on board to open the store and run it each day of the holiday weekend and do so with a great attitude you may have the winning solution to the problem!

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Strategies to Keep Black Fridays From Becoming Bleak Fridays (A Focus on Sales, Safety and Security)

October 31, 2018 by Leave a Comment

Black Friday and the holiday shopping weekend has generally been the time of the year that most retailers are excited about. This is the time when shoppers are going to pull out their wallets and spend money. Deep discounts, doorbusters, even gift bags for the first customers, have been used to entice shoppers to visit stores early. It has been so successful as a marketing tool that stores have even advertised early Black Friday sales in JULY! Unfortunately, it seems that there has been a dark cloud overshadowing this weekend and it is more ominous each year. This cloud is one that can turn a Black Friday into a Bleak Friday if a store owner isn’t prepared for it.

     The black cloud involves the safety and security of customers and retail sales for the store owners. There are factors owners must take into account to keep that cloud from raining on a weekend that should be making shoppers happy and keeping registers ringing. As a Loss Prevention Manager, I have seen to it that my stores have remained safe during the Black Friday weekend but I have followed incidents at other stores where things turned ugly. Customers have gotten hurt rushing into stores. People have fought over doorbuster items that were limited in quantity. I have had to intervene when shoppers argued over not receiving a raincheck for a one-time purchase item. I have also worked a Black Friday when all of the registers went off-line and customers became angry and abandoned shopping carts. All of these can have a negative impact on sales and hamper the weekend that should be one of significant profits for a store.

     Here are some suggestions for preparing your store and employees for the event:

  • One of the things that set customers off is waiting in a line only to find out that a particular doorbuster is sold out. If you have some item you expect will draw in customers but there is a limited quantity, have a ticket for each item. Have someone go through the line as it forms and ask who is there for that item. Pass out the tickets and set aside enough to fill those orders. Continue to do this until you open the doors. If you run out of tickets before you open the doors be honest with the customers who are continuing to walk up and let them know you are out of that item.
  • Consider hiring a security company to provide a presence at the front of the stores to help keep order. A lot of altercations begin outside when people who have formed orderly lines and have waited patiently believe others are cutting in front of them. They are also a great presence to keep shoppers safe as they leave with their purchases to go to their cars. If you don’t want to hire security you can see if local police are willing to make frequent drive-by’s. Another alternative is to have two or three employees mingle with the line, talk about the sale items and even hand out store maps where specific sale items are located.
  • Check all of your point of sale equipment at least a week in advance to try to ensure there are no equipment failures on Black Friday.
  • Have a technician test all of your electronic article surveillance equipment to minimize false alarms and reduce the opportunity for theft to take place.
  • A lot of cash transactions take place on this holiday weekend and it is a good time for counterfeit bills to be passed. Be sure cashiers are using counterfeit pens for $50 and $100 bills. If possible a counterfeit bill detector for each point of sale is a better solution. Know that if you take counterfeit bills your store is not reimbursed or covered by your financial institution.
  • If your store happens to use display cases for some high ticket items, be sure more than one employee is carrying keys to assist customers and minimize wait times (also consider all of the retail anti-theft options available from Sensormatic that can improve security while enhancing sales).
  • Think about offering free coffee or tea to patrons who may be waiting outside for the store to open. You would be surprised at the positive response you will get from shoppers.

By taking the time to prepare in advance and plan out your Black Friday weekend you can minimize safety and security risks. The same planning will boost sales and ensure that your business truly experiences a very profitable holiday.

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Preventing Shoplifting In Your Store

February 8, 2018 by Leave a Comment

A Target or Walmart store can and are able to fight shoplifting in their stores every day of the year.  The expense associated with shoplifting has for many years been known to be passed down to the consumer, and the increase in prices has been an expense that gradually has affected consumers around the globe.

In the United States retail shrink which includes shoplifting, employee theft, administrative errors and vendor fraud cost the US retailers close to $50 billion in 2016 alone. More than 36% of shrink was due to shoplifting, and 30% was due to employee theft.

Many local businesses across the United States have taken different approaches to prevent shoplifting.  From investing in Facial recognition software to shoplifting prevention training, many businesses have taken different approaches to the prevention of this crime.  But, according to the National Retail Federation (NRF) even as the average inventory shrink rate has increased by close to 1.5% the budgets for loss prevention personnel has decreased or remained flat.

What are some of the steps local businesses have taken to prevent shoplifting?

Signage – A Spokane Washington local business has signage that lets you know from the time you enter their store that they have Video surveillance in use and they will prosecute you in case of shoplifting, and they also have a policy of taking your name when you enter their fitting rooms. If you shoplift, they already have your name.

Customer Service -has been proven to be one of the major loss prevention strategies businesses have adopted that can also benefit them in the long run. Be aware of the difference between offering great customer service and stalking a customer.

Training –  Trained personnel cannot only help you prevent shoplifting but can prevent incidents from getting out of hand.  Knowing the laws, regulation, and the process when a shoplifting incident occurs can save lives and prevent lawsuits.

Facial recognition software – If you are using facial recognition software in your stores, caution has to be taken into consideration.  Using facial recognition improperly can lead to too many problems and too few rewards.  Properly trained personnel are one important aspect of using this kind of security measure.

There is probably a fine line between great customer service and making your customer feel like a criminal.  Losing customers because your employees follow them and are constantly asking them if they need help or making them uncomfortable is not a good solution.  If you are also targeting people for no apparent reason, the probability that the bad experience will find an outlet that will carry bad publicity for your business is very likely.

Let us know if some of the above methods you are using seem to be working for you.

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