Solutions To Combat Shoplifting and Employee Theft

Shrinkage – Employee theft, shoplifting, clerical and vendor errors-is an issue that big and small retailers have in common. From Wal-mart to Target and whole-sellers like Costco, shoplifting is a common occurrence that cost the retail industry billions of dollars each year. 

Many small business owners in the retail industry choose to not prosecute the theft.  The reasons? The cost associated with prosecuting a shoplifter or employee theft is too costly for many of them and believe at the end of the ordeal it is in their best interest to take the theft as a business loss. 

For the big retail chains, theft is important and the measures they take to prevent, prosecute and avoid it are serious.  The profits are greatly diminished when shoplifting, employee theft, and vendor or clerical errors occur frequently in their business.

How can they be profitable if they do not combat a financially crippling problem?

 The retail industry’s shrinkage average nationwide is between 1%-2%, and for many retailers that is a big chunk of their profits that will disappear every year.  Big retailers like J.C. Penney and Costco have implemented shrink measures that have seen shrink reduction decrease tremendously.  Costco shrink’s rate is just 0.11% to 0.12% of sales and J. C. Penney has seen a decrease of 20% reduction in shrink dollars. 

The security measures they have been implemented in those stores are the big difference between out of control losses and security measures that are working out for them to prevent theft in their stores.

For many of these stores, implementing technology to combat theft is the first step they take in their quest to prevent it.  

Personnel training is another big change they take into consideration when dealing with theft.  Research has shown for many years now, that a happy employee is an employee that will, in the long run, be an asset to your business. Training employees, and providing them with a good salary are investments that many companies take seriously, and research has shown happy employees provide a better customer experience that results in less theft.

Shoplifting and employee theft are hard to combat and they can be hard to understand when looking at profits. There are solutions your store can implement to combat them and to give you peace of mind. Finding a solution is necessary and too important to ignore for too long.

Quit Stalling About Employee Theft

Every day I see news articles about employee theft. That does not even cover a fraction of the employee theft occurring both know or unknown. The fact is that approximately 45% of a Retailer’s losses are due to employees stealing. We focus so heavily on shoplifting that many times a Retailer misses the boat completely. Do not misinterpret what I am saying, shoplifting is responsible for about 35 percent of a Retailer’s losses. Which is also huge.

However, employees have access to your cash, supplies, and merchandise. Employees are generally trusted until they show us that they are not. Which may be too late! Many Retailers I have discussed this with over the years tell me that they trust their employees and treat them well. Therefore they would not steal from them. Those are the folks that have the worst losses and the biggest shock when it does happen. As human beings, we do not want to believe that someone would steal from us. We also are quick to turn a blind eye to the evidence even when it hits us in the head. We simply do not want to believe it.  

Another factor is that many Retailers do not know, understand and are afraid to do something. Will we make a mistake? Would we accuse someone of something they did not do? What civil and criminal consequences do we face? And the list goes on. This is yet another stalling factor for not doing anything. 

Quit stalling about employee theft. You face every other retail problem head on why not this. Educate yourself. We can help you with this. Make sure you know the signals of employee theft. Yes, employees who steal, act differently than other employees. You simply need to know what to listen and watch for. Do you “audit” your operation? For example, an audit can be as simple as making sure the Point-Of-Sale balances every day and if it does not, find out why. I have seen many Owners and Managers that say if the drawer is short $5 or less, they do not look into it because “it is not worth my time”, REALLY??? THAT IS SO WRONG and dangerous!!!! First by having a policy like this you are telling everyone that stealing $4.99 and below is okay. $4.99 times 365 days a year is a loss of $1,821.35. Oh, and that kind of theft WILL lead to larger and more frequent employee theft. 

Over my career, I have investigated, interrogated and put in jail somewhere north of 2300 employees for theft. The vast majority of those employees that were stealing did it for the same reasons. Many still stole even those the boss was “good to them”. I have seen employees that had been loaned large amounts of money by their employer, employees that were being put through school by their employer steal with no regret except for being caught. 

We can train you to spot employee theft and what to do about it when you suspect and find it. It is not hard to do. We can show you how to “test” employees to see if they are stealing. We can help you build the confidence to be on the offense, not the defense.  Your good employees will not care or suffer. In fact, they will help you. You just need to know how to proceed. 

Would you knowingly buy a car that had major engine and transmission problems? Probably not. So why would you hire someone with a criminal record? Why would you not find out that they have problems with violence, theft, drugs and worse when it is so simple, fast and cost-effective to do so? We can help you with that also. We conduct pre-employment screening, drug testing and more, nationwide. Look at it this way, you interview, select, employ, train, invest in an employee just to find out the hard way that they are very familiar with employee theft? When a pre-employment screening costs $20 how can you afford not to. Drug testing is also very inexpensive. You can quickly, cheaply and easily have a pre-employment drug testing done on all of your employment candidates when you offer them the position. Again, we conduct pre-employment screening and drug testing nationwide. 

You control every other aspect of your business, why would you not take more control of employee theft? Contact us today or call toll free 1-866-914-2567. 

Importance Of Inventory Control-How Out Of control Are Profits Without Inventory Control?

 Out of control spending may be okay for the federal government (Let’s be frank 20+ trillion of debt seems pretty out of control to most of us) but as a store owner or manager out of control expenses will bury your company. I am sure that you are looking carefully at where you spend your cash, reviewing controllable reports and monthly expenses. What you may not be considering is how operating a store without inventory controls in place can be negatively impacting the profits of your store. 

     When I talk about inventory controls I am not simply referring to activities on inventory night, I am talking about everything the store does all year to control merchandise. For example, the store I work for receives their pallets of freight several times a week. Included in these pallets are sealed plastic shipping boxes that hold individual pieces of merchandise. Some of these boxes have different colored seals and colored seals are indicators that the merchandise inside is high value/high theft goods requiring strict controls. The merchandise in these boxes requires security devices or immediate lock-up. When I was a Loss Prevention Manager for another company we had a lock-up cage we staged at the trailer receiving door. As specific high-risk merchandise came off of the trailer that product immediately went into the cage. That merchandise had to get to its department following a very specific path and if I observed any deviation from that path I was investigating the issue. The store where my daughter works requires all jewelry shipments be taken immediately to the jewelry counter, counted against the invoice and stocked. Jewelry is not allowed to sit out until it is convenient to secure it. Having a detailed plan for identifying high-risk products, verifying counts against invoices right away and immediately securing it are smart steps in preventing inventory shortage from getting out of control. 

     Electronic article surveillance (EAS) systems are another key piece of a sound inventory control strategy. When I mentioned securing products above it does not necessarily mean that merchandise has to go into a lock-up case. Most merchandise can be protected against theft with EAS labels, hard tags, wraps and other protective devices (for example Sensormatic has a product called Flexible Safers that can hold items and still give EAS protection). There are some things that a display case is appropriate to display merchandise in such as high-end jewelry. By the same token, there are EAS products suitable for costume and less valuable jewelry. Inventory control of such pieces of merchandise means tagging these items by a team of trusted employees before they are on the sales floor and accessible by other employees or shoppers. An EAS system also includes the installation of towers at all points of entrance and exit. A common error on the part of many retailers is the failure to place towers near vendor doors and employee-only entry doors. Failing to protect these doorways is a misstep in recognizing the reality of employee theft and the impact it has on store profitability. 

     Inventory control also takes place in in-store training programs. Teaching employees how the customer service they provide helps prevent shoplifting plays a part in inventory control. Training front end supervisors and cashiers how to properly handle EAS alarm activations determines how much merchandise you may or may not recover from potential thieves. Even the proper training of specialists who show merchandise from lock-up showcases impacts the potential for a crook to steal. How many pieces of jewelry should be out of a case to show a customer at any time? One, two, or three items? You have to teach your team what you expect and how someone may try to trick them while they are showing merchandise. 

     Inventory control is a year-round effort. It encompasses more than locking up merchandise or preparing for an annual inventory. Inventory control requires an in-depth look at where losses can take place, how they occur and who may be causing the losses. Once you do that you can implement solutions to the problem by creating a comprehensive shortage prevention strategy. Do that and you keep from losing control over your store profit line.  

Is Pre-Employment Drug Screening Worthwhile In Today’s Culture?

There are many ways for store owners to reduce the risk of employee theft and fraud. Background checks supplement interviews and screening questions on a job application. Manager training to know the signs and indicators that a worker may be engaging in theft activity of some sort is another preventative step. Electronic Article Surveillance systems and tags are helpful in deterring shoplifters and dishonest employees. Certainly Closed Circuit Television (CCTV), Public View monitors and mandatory package checks before leaving work all play a part in preventing internal criminal activity. One of the best tools an employer can use to reduce the chance they will even hire a thief in the first place is the use of pre-employment drug screening. The prospective employee would go to the lab, fill the cup and labs would send off the sample to have it checked for illegal substances. That has been the most common of the drug tests and many employers have relied on it to help them keep their stores profitable and safe. 

     Is this still an effective method for owners to use? With states loosening their own laws surrounding marijuana use it is a mixed bag. Not all states are legalizing it and it is still a federal crime to use, grow, distribute or possess it. So if you are in a state where it is still a crime to use marijuana and an applicant applies to a job with your company but he/she comes from a state where it has been “legalized” do you have them take a pre-employment drug test? What happens if they take the test and results show they use marijuana, do you not hire them even though it was “legal” where they came from? This can pose a dilemma for store owners. If you do hire them, do you put yourself at risk for discriminating against someone from your own state who failed and did not get hired based on that result? 

     Leaving the marijuana out of the equation for the moment, there is still room for drug testing in the workplace, both pre-screening and random drug testing of employees. Drug screening can identify other illegal substances in addition to marijuana. According to thebalancecareers.com, “A typical drug test for employment purposes screens for drugs including amphetamines, cocaine, marijuana, opiates, nicotine, and alcohol.” While you may decide to overlook positive results for marijuana you can still turn down applicants for the other drugs. States may be legalizing marijuana but the debates about the safety and effects of the drug on behavior remain a concern. Just because it is legal does not mean you necessarily want someone who uses this drug or any other drug working for your business. Pre-employment drug screening is still an effective tool in your efforts to combat theft and safety concerns. 

     Why test for drugs in the first place? By testing and screening out applicants who test positive you significantly reduce the risk of hiring someone who very well may steal from your store. It may be cash or merchandise but they have a habit to feed and they still have bills to pay and they are not going to feed that habit on a retail job. Working in the store gives them access to money and merchandise that will provide the resources for their addiction. Another reason to test is to keep your store safe. Someone who is illegally using drugs or coming to work under the influence of drugs or alcohol can be a cause of an accident or can be the victim of an injury in the workplace incurred while under the influence. Whether they cause the accident or are the victim of an accident, you can end up paying for it. There is also the safety of your other employees to consider. Someone under the influence of the wrong drugs can be unstable and volatile. What is it that is going to trigger a violent action on their part? Giving them a direction or task they don’t want to do? How about a customer that says something that sets off your employee. There is no place for violence or theft in the workplace and pre-employment drug screening can help prevent both from happening. 

Did The Grinch Steal Your Retail Christmas? 

Wow, Christmas is over and Retailers are starting to dig out from the carnage. Unfortunately, some of the carnage is all the merchandise that shoplifters have liberated from your store. I believe that theft is actually the oldest vice around. Even older than “the oldest profession”. As long are there are two things on this earth 1-people and 2-stuff, there will be theft. Well, neither is going away anytime soon. So what do we do?  

The first thing is to make the decision to take your store back from the enemy. Putting the solution off will not fix the problem and it will get worse. The second is to implement the two proven solutions. Training and a Sensormatic system. 

TRAINING – Over the past 35 years I have heard countless retailers say the same thing. “I don’t know what I can or cannot do with or about shoplifters”. Shoplifters are no different than any other business challenge we face. Attack it head-on. Loss Prevention Systems can educate you on what you can and cannot do. But more importantly, we will take you off the defensive and put you on the offense. Now I know what you may be thinking right now. “I am not going to chase shoplifters down and tackle them!”. Well, I am glad we got that out because we do not want you to do that either. We want to prevent the loss from occurring (that’s why we call ourselves Loss Prevention Systems, Inc. What a coincidence, huh?).  

Training should cover a discussion of the problem itself, the law both criminal and civil, who shoplifters are and how to spot them before they even steal, going on the offensive with customer service tactics and more. We do this live via webinar with as many of your folks as you can pull together. I have actually found that most of the time we need to do two sessions so we do not leave the store short staffed or someone misses out. Training will help give you the confidence to attack the shoplifting scourge head-on. 

SENSORMATIC SYSTEM – “So if I am trained, why do I need a Sensormatic system and Sensormatic security labels?” Great question, glad you asked that! (sorry, I am in one of those moods) Consider this, training is only half of the solution. You and your staff can be trained up in the techniques to prevent and deal with shoplifting but you cannot be everywhere at once, even in a small boutique. Shoplifters WILL create an environment where they can steal. On top of that what you will find is that some of your “best” customers are also actually stealing from you. Yes, that good customer is buying merchandise, either small inexpensive items or even more expensive ones but they are actually stealing other merchandise in addition to that. And because they are a “best” or frequently seen customer less attention is paid to their activities. They are kind of a fixture, they hang out a bit, joke with the staff, ask questions and then…. They are simply not observed because “that’s just Sam or Wendy, they are really nice”. 

So to handle all that you will find that a Sensormatic system is actually cheaper than additional payroll. In addition to that, the Sensormatic system never takes a day off, does not call in sick or no show. The Sensormatic system is working 24/7. Actually, many of our systems actually power themselves down after you close to save on your energy bill. They automatically wake themselves up when you come in the next day. 

A Sensormatic system has two benefits. It sends a message to the thieves (real customers do not care) and prevents losses. And, of course, the tags and labels are actually protecting your merchandise and bottom line. 

So there are no more excuses. Make this year the best yet for sales you make and actually keep the margin make on the bottom line. Grinch, GO AWAY! Contact us today. We can make both Training and a Sensormatic system your reality. 


Resolved Or Solved? How Planning Can Make New Year’s Resolutions Work

Have you ever noticed how we all anticipate a New Year will bring new and exciting things into our lives (or businesses) but after the first month we often realize that nothing is new or improved or better? In fact, we may be disappointed as the year progresses that problems we hoped would be resolved (read, “magically disappear”) are still there. We make resolutions at the beginning of the year that are meant to help “improve” or “fix” something we know is an opportunity but then we slide back into our routines and those “problems” don’t get any better.

     In retail, those problems may involve personnel issues such as hiring and retention. Concerns may be for store profitability including expenses, sales, and shortage. Maybe concerns are over what may be classified non-controllable expenses, building rent, taxes, etc. Wishing problems away is not a solution nor is a resolution. If you want to resolve to solve problems you have you need to create an actual action plan and then take a partner(s) to stick to it, often one of your store managers or department management team. As you look at the areas of opportunity and break them down you can find that correcting one area can make a significant impact on other areas. Let me give you an example of what I mean.

e.g You identify that you have an issue with excessively high merchandise shrink.

      You need to identify all of the possible causes of the shortage problem.

  1. Do you use retail anti-theft devices?
  2. If you use a Sensormatic security system are you tagging everything?
  3. What areas are your highest shortage departments and are they vendor serviced?
    • If they are vendor serviced are you checking in and out vendors?
    • Are you improperly tossing out of date merchandise rather than receiving vendor credits?  
  4. Is employee theft causing shrinkage you haven’t seen?
    • Do you complete pre-employment background checks before hiring?
    • Do you require pre-employment drug screening?
    • Do you know the signals to look for that would indicate an employee may be stealing?
  5. Do you control your compactor and who throws out the trash and if you have a baler who is crushing cardboard?
    • Employees and vendors who are stealing and have access to a compactor will toss out the empty packages they would otherwise leave behind.
    • Uncontrolled compactors mean anyone can throw away anything that looks like trash but some small items can be overlooked and thrown away and cause a shortage.

These are not all of the contributors to a shortage. You can continue to drill down and I would encourage you and your team to do so. The project doesn’t stop there. Once you have identified the issues you need to create an action plan to address each concern. The plan should also include benchmarks or measurements that will show you are doing what you said you would do. There must also be deadlines for completion.

     There are areas that will cross over and can be beneficial to each section. Let’s say that you have focused on shortage and you also believe you have a hiring/retention problem. It seems people are going in and out like a revolving door. You have to ask yourself are you hiring the right people in the first place. If your employees keep leaving it could be they have stolen from you to get what they want and they are leaving before you catch on to them. If you start doing background checks you will be more selective in who you are bringing on your team. You may have been hiring a lot of people with criminal records or spotty work histories. Being selective and hiring the right people can also build a more dependable workforce. This leads to improved morale, more initiative and a better work ethic overall. Improving your hiring can improve shortage results due to dishonest employee activity.

     Another example of crossover would be compactor controls. Start regulating who is tossing out the trash and you impact retail shrinkage but you may also find that merchandise that was being overlooked is now being stocked more carefully. Overlooked items are getting back on the sales floor. Not only do you reduce shortage you improve sales.

     Wishing the New Year will bring improvements is no way to operate a business. Planning and follow through on those plans will bring about the positive changes you want to see. Resolve that 2019 will be a year of growth and profitable sales! Happy New Year!


          

New Year’s Resolutions That Help The Environment And Can Keep Stores Profitable

It’s 2019 and time to make some New Year’s resolutions! We all know how easy a resolution can be to make but they are hard to keep. We also know that it is just as easy to break a resolution but are there resolutions a store owner can make that would benefit the store AND benefit society? I think one resolution that would be mutually beneficial for both would be the implementation of environment-friendly policies and procedures. We are talking about sensible measures that would appeal to anyone on either side of the political spectrum. Right now there is a big push for the elimination of plastic shopping bags. There are also those opposed to going back to paper bags. What could the solution be? Try encouraging the use of recyclable, reusable shopping bags for your customers. You make those opposed to one-time use bags happy and you save money on the need to regularly purchase more shopping bags (which can be a rather pricey supply on your monthly expense report). To implement this type of change you would want to have reusable bags ready for your customers and you might even give them away for the first few weeks you start the program. After that, you might give customers a small discount to customers who bring their own bags, say 1% on every transaction.

     Problems that may arise by allowing recycled bags into the store. The first concern is the potential for increased shoplifting. Inviting customers to bring their bags into the store to bag groceries is going to make shoplifting that much easier. Thieves already walk by unattended cash registers to pick up plastic shopping bags as they enter the store. They fill them up, look like any other customer who has made a purchase at an in-store terminal and they leave. Most customers are honest but I would remind readers that one of the necessary ingredients for shoplifting is opportunity. Without opportunity, some people who may be tempted to steal for a thrill are kept in check. You provide opportunity by permitting reusable bags and some will take advantage of it. You also have to think, are the bags only allowed at the checkout stand? How do you keep shoppers from filling them up as a convenience rather than using a shopping cart? How do you monitor the shoppers for those who may be stealing and those who are simply picking up merchandise for purchase? It can lead to problems for store owners.

     There is a way to allow the use of shopping bags and minimize the risk of increased shoplifting and that is the installation of an electronic article surveillance system (EAS). If you are going to resolve to help the environment you can still do it just by adding an EAS System in your store if you don’t already have one. You tag all of your merchandise with EAS tags or labels depending on what the merchandise is or how you strategize your theft prevention procedures. If a shopper has concealed merchandise in a bag they brought in and did not pay for it the alarm is going to be activated and your employees will respond to it.

     Since we are on the topic of being environmentally responsible it is important that retailers know that many EAS tags are built out of recyclable materials. Hard tags can be used multiple times to tag and re-tag merchandise thereby saving on the need for constantly purchasing new tags and since they are recyclable they help the environment. It should also be noted a lot of Sensormatic systems help to reduce power consumption. When the systems are not in use (during non-working store hours) they go into a power saver mode. Stores save money and wasted energy. The use of EAS loss prevention equipment saves stores money by preventing theft and it allows stores the ability to appeal to their environmentally focused customers thus driving sales.

     Another environment-friendly step you can make as a retailer is to look at recycling those cardboard boxes your merchandise is shipped in. A cardboard bale can bring in anywhere from $10 to $20 a ton. If this does not seem like a cost-effective move for your store you could try partnering with a neighboring store and combine efforts. It isn’t a lot of money but it does keep cardboard out of landfills and you can advertise that to your customers.

     Resolutions may not be easy to keep but once you start down the road of using merchandise protection and you see the money you save in shortage and how easy it is to implement you won’t find it difficult to stay on track. In 2019, resolve to make some changes that will help the environment and make your store more profitable at the same time.


Loss Prevention Systems For The New Year

For a loss prevention officer, the holiday season is a hard time to be jolly when the busiest shopping season of the year brings with it its shoplifters, crime, and theft.  During the holiday season, the number of incidents involving shoplifting increases considerably, and the losses the store suffers can be devastating to their bottom line.

For any retail store in the United States and across the globe, having a loss prevention system in place or a loss prevention officer in their store can be the difference between having profits or losses during their fiscal year. 

According to recent studies, more than half of retail stores in the United States have stopped investing in their loss prevention teams or systems even though their inventory shrink rate has seen an increase in the last year.  The inventory shrink rate takes into consideration the following:

  • Shoplifting
  • Employee theft
  • Vendor fraud
  • Administrative and paperwork errors

Shoplifting theft accounts for almost 40% of the total theft a store experiences, and even though the amount an employee steals can surpass that of the common shoplifter each instance it happens, the shoplifting theft can be considerable every year.

According to many pieces of research, retail stores lose approximately $35 million a day due to shoplifting or $48.9 billion in a year. Those detrimental statistics in the retail industry are worth considering when many stores and businesses decide whether to invest in a loss prevention system or a loss prevention team to combat the shoplifting in their store.

A loss prevention system expense can be recovered within a short period of time, and if your losses are increasing each year, the time you will recoup the money invested in the system shortens considerably. 

The introduction of a loss prevention system in the store allows your employees to dedicate more time with the customers entering your store, than attempting to catch the shoplifter. The system also allows your store to be protected and send a message to the shoplifters. Shoplifters know where and which stores to target.  If you are a store that doesn’t prosecute shoplifters or doesn’t have a loss prevention team or system, you are vulnerable and can become the target store for many of these shoplifters.


Tips On Merchandise Placement To Satisfy BOTH Sales And LP

Do you want to know one of the fastest ways to make a Loss Prevention Manager cringe? Place high dollar merchandise within a few feet of your entrance/exit doors. Another great idea is to stack out a pallet of 32 inch LCD televisions for that Black Friday door buster with no protective devices on them because you know how fast they are going to go out the door (the L.P. Manager knows how fast too but from a different perspective). Frequently store managers want to put merchandise on display near the front of the store where customers are certain to see the items and entice them with an impulse buy. The downside to the strategy is that it creates a major opportunity for crooks to sneak merchandise out quickly without being noticed. They wait for a group of people to enter or leave, pick up the merchandise and blend in with the crowd then exit with the goods. I’ve seen it happen.

     On the other side of the fence you have Loss Prevention Managers out there who want to lock up everything. They aren’t thinking about what drives sales or impacts the shopping habits of customers. Their concern is that the merchandise is placed in such a way that it can’t be stolen. I’ve been one of those managers and I thought I had the best interests of the store in mind as I sought to keep valuable new displays on a tight leash. Keep the merchandise in the store and out of the hands of criminals and you save stock shortage. Doesn’t THAT drive sales for the store? Customers can’t purchase what has been stolen. Keep those goods in the store and sales will soar because paying customers can get their hands on it.

     There has to be a happy place where security and availability can meet. Merchants and Loss Prevention can find a common ground but they need to work together to do it. Having learned my own lessons over time I would like to share some ideas that can be beneficial to store sales objectives without creating a security risk to merchandise.

  • Coming from many years in Loss Prevention I want to first say to the Loss Prevention department; remember that the number one priority of the store is to SELL merchandise. Your job is to help do that and this means being a partner and understanding WHY a manager may want to place a product in a particular place. You should take a look at what the manager wants to do and offer constructive suggestions that can decrease the chances of merchandise theft without being an obstacle to the decision.
  • Before any new planograms are set or merchandise displays are placed, managers meet with L.P. and discuss what you are planning. L.P. may have suggestions to help make merchandise secure without compromising the desire to put merchandise in the hands of the consumers. There may be electronic article surveillance tags or labels that can be applied to merchandise.
  • If the merchandise is to be located close to the front of the store put it in a location near a cash register. Keeping products within the line of sight of employees is one way to deter theft.
  • Keep track of product quantities. This means several times a day taking a count of the pieces of merchandise on a display and tracking sales of those items. If you start to identify a theft trend then re-evaluate your merchandise protection strategy.
  • Don’t use locking display cases! Unless the item has a very high dollar price point there are alternatives available to stores to secure merchandise. There are security boxes and cases on the market that allow shoppers to pick up and handle goods without being able to actually touch the item.  These cases (such as a Sensormatic flexible safer for example) prevent shoplifting while allowing a customer to select an item and continue shopping (customers don’t like to wait for help at a display case).
  • If your store has closed circuit television then consider placing a camera and a monitor as a public view set-up. It discourages theft when people see that they are on camera.

New product displays attract customer attention and increase sales. When Loss Prevention and Store Management work together on these projects sales will be successful. Let’s not forget that shortage due to theft will also be minimized if not eliminated and THAT makes EVERYONE happy!


Hiring Well For The Holiday Season

For the retail industry and small businesses in general, the holiday season has started, and for them, this season can be a financial boost for their business.

The significant change in sales, profits, and employment take a front seat during the holiday season, and it can be a breaking or making point for many businesses across many industries.

By November, the retail industry has hired many part-time sales personnel to help with the holiday season, expecting those employees will be ready when black Friday sales start.   Many of those businesses will let go many of those employees, but some of them will stay with the business well after the season is over. 

The benefits associated with keeping those employees on payroll are many, but most importantly, it is the expense associated with hiring new employees every few months that make sense. Many businesses strive to hire quality employees and can see the benefit in training them and keeping them well after the holiday season is over.  The expense of hiring new employees regularly makes no financial sense for them considering the rise in costs associated with it.

According to the Society for Human Resource Management (SHRM), the cost of hiring a new employee is $4,129.  Not only that,  but it also takes weeks for those employees to be ready to perform their job well, and if not trained properly, the cost of retraining puts a financial strain in the business and their profits.

When paying for a background check before hiring a new employee, or for proper training the first time around, the costs associated with acquiring quality employees can become minimal if done properly the first time around. 

Many businesses now a day hire new employees constantly, never training them well and getting rid of them before their first paycheck arrives.  That’s a very costly way of acquiring employees or retaining the ones they have, and acquiring good employees using this method is riddled with problems from the beginning.

A business needs to invest in properly hiring and training their new hires.  The financial benefits will follow for the business.