Solutions To Combat Shoplifting and Employee Theft

May 30, 2019 by Leave a Comment

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.

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

May 3, 2019 by Leave a Comment

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

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

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

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

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

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

May 3, 2019 by Leave a Comment

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. 

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What can a Loss Prevention System do for you?

April 19, 2019 by Leave a Comment

Loss prevention technology along with the proper personnel training will allow a retail store to reduce loss, improve customer service and provide the data necessary to access up to minute inventory information in the store.

A loss prevention system is a preventable measure retail stores need to adopt to prevent the losses that plague the retail industry. A loss prevention system along with trained personnel can be a deterrent to shoplifting, vendor and employee theft that can save the retail store thousands of dollars a month.

A loss prevention system can protect the merchandise in the store while protecting customers and the employees as well. Incidents, where violence and sometimes deaths occur, can be avoided with the proper systems, training, and the continuous effort to ensure the safety of the employees and customers alike.

A loss prevention system can allow the employees and manager of a store to focus and ensure customers have a good experience shopping at their store. Good customer experience can translate to continuous business, and great customer satisfaction has been linked to less shoplifting in the retail industry.

If you are the owner of several retail stores, a loss prevention system can be adapted to each store’s unique layout and needs while providing the same information you need to prevent shoplifting or to take the necessary measures to prevent it.

A loss prevention system is an investment a retail store cannot do without, but along with an investment in a loss prevention system, trained personnel plays an important role in making sure the system can do what it is supposed to do. Data from the loss prevention system cannot go unchecked, and it cannot be ignored.

Employees have to be trained and knowledgeable of the stores’ policies and procedures regarding shoplifting to ensure an efficient and quick response if shoplifting occurs in the store. Violence can and must be avoided at all costs.

There’s research out there that clearly indicates the cost versus benefits of having a loss prevention system in place.  Profits in a business can be slim, losing them to shoplifting, employee or vendor theft can be detrimental to any business.

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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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Post Holiday Retail Blues

February 28, 2019 by Leave a Comment

 

Did your sales meet, exceed or fall short of your expectations? Regardless of how they turned out it is likely they could have been better when you factor in your inventory shrinkage. Shoplifters, employee theft and paperwork errors all create additional loss that drain away some of your profits. What strikes me is that these losses are like adding insult to injury. You ordered, received, put the merchandise out and paid your vendor for it. On top of that you have your expenses, payroll, rent, utilities and more.

After all that someone, a shoplifter, comes into YOUR store with the intent to steal from you. They do not care if it hurts you, your staff and your family. They simply do not care about that. It is ALL ABOUT THEM. And on top of that it just keeps going on year after year.

But, shoplifting is no different than any other business problem. You can fix it the same way by simply paying attention to it and attacking it head on. The problem that most retailers face with shoplifting is the feeling of despair because you are not sure what you can or cannot do. What is legal? The Police seem to have little interest in helping you. The times you have caught a shoplifter have met with mixed results. The shoplifter seemed to get nothing but a slap on the wrist, if that.

So how do you attack the scourge of shoplifting? From a business’ standpoint is actually fairly simple. Cast aside the concerns about prosecution with the criminal or civil courts. We should be concerned about what could happen to us legally but the reality is you want a program to keep shoplifting from happening at all. You must get into a prevention mindset.

A prevention mindset or loss PREVENTION is exactly that we want to prevent the losses from occurring at all. Because when a shoplifter attacks us it costs us money, even if they are not successful. Not just the loss of merchandise but our time and expenses. 

The really great thing about a prevention mindset is that it costs us little in the big picture and actually is in alignment with our sales goals. Yes, you do need an anti-shoplifting system like a Sensormatic system but that is only fifty percent of the equation. 

Step one is to change the way you approach customers. Customer service is king here. Shoppers love attention. They are there for a little retail therapy. They are interested in purchasing something from you and favor the attention that your staff can shower on them. Answer their questions, help them make a choice or just let the customer know that you appreciate their being there.

On the other hand shoplifters HATE everything I mentioned in the previous paragraph. Shoplifters need privacy even if just for a moment to steal from you. They do not want any attention, assistance or help. They are there to steal your goods and YOU ARE IN THEIR WAY. So what should you do? Remember this, good customers want your attention at various levels depending on the customer’s wants and needs. Any sales floor staff that have any experience at all know when to turn customer service up or down. 

It starts the moment that the customer walks in the door. Every person that enters your store must be greeted. A greeting should include brief eye contact, a smile and a “welcome to (my store) how can I help you?” Very reliable studies have proven over and over again that impulse shoplifters which make up approximately fifty percent of the average retailers shoplifting losses will most likely not steal from you in that visit if they are greeted. This is a win-win situation. Good customers love the attention shoplifters hate it. However, you cannot stop there. Amateur and professional shoplifters will not be deterred by that alone. They require additional customer service. Approaching them to help, suggest additional items they may want to consider not only increases your sales to that customer but it puts the shoplifter on notice that they have been seen and are being observed. The shoplifter will try to shun that help. So what do you do in that case? Step back and still be in range to “help”. Many shoplifters will simply leave. If this is consistent then the shoplifter will go elsewhere to steal from a retailer that is not prepared.

So what is the second part? You must have a Sensormatic system. As much as we would like, we do not have unlimited payroll. We cannot be everywhere at once. Shoplifters look for or even create conditions where the customer to staff ratio is out of whack. That is where the Sensormatic system comes in. Merchandise that is higher value or frequently stolen is protected with a label or a hard tag. If the thief tries to steal it, the Sensormatic system at the customer doors alarms. Your merchandise is protected 24/7.

The combination of these two creates a pretty impenetrable wall that will reduce most of your shoplifting losses and at the same time increase your sales. 

And yes, Loss Prevention Systems can help you with both. As the former Director of Loss Prevention for several major companies I have worked my way up in the trenches from personally apprehending shoplifters all the way to starting and running LP programs for those companies. When you purchase your genuine Sensormatic system from us you get the training and support to fix your shoplifting problems.

Contact us today or call 1-770-426-0547 to find out more about our Sensormatic systems and getting your staff trained up to go on the offense. 

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Not Planning For Summer Customer Traffic In March Is Madness

February 28, 2019 by Leave a Comment

Not Planning For Summer Customer Traffic In March Is Madness

Have you ever noticed how quickly big box retailers will transition from the Christmas season in their “seasonal” departments to jumping into the new Spring/Summer merchandising sets? They don’t play around they are very strategic in their planning to get a jump on their competition. They use their mini-seasonal areas to drive the Valentine’s Day and Easter business but the large areas used for patio sets, plants, gardening, etc. get changed shortly after the Christmas season is over. Smaller retail stores should be doing their own transitions at this time too. It’s madness if you haven’t started putting out the Spring/Summer merchandise for your type of store by March.

     I understand there are some types of retail stores where it would seem a bit more difficult to appeal to a seasonal change. I think of luggage stores or perhaps a “mom and pop” corner grocery store where customers are used to purchasing their staple food items. But let’s think about this for a moment. Is there room for even the least seasonal retailer to adapt to seasonal sales? I would suggest there is room and it may take a bit of getting out of a comfort zone. Let’s say you sell luggage and people are going to come to your store who travel at all times of the year. Is it possible for you to carry some items that may be more colorful to appeal to a summer traveler? Think about how much easier it would be to locate a unique or brightly colored suitcase if it is on an airport carousel. While some shoppers (such as I) might prefer a traditional dark colored carry- on bag or briefcase, there are those people who fancy a more whimsical style. A change of colors and patterns might draw in more customers especially with the right touch of advertising and product placement.

     Mom and Pop grocers, sure milk, eggs and bread may be your bread and butter (pun intended) but is there any reason you couldn’t put out a display of Igloo coolers, picnic grills, aluminum foil, six-packs of soft drinks or beer? How about a front of store display with these items, grilling aprons and advertising for specials on lunchmeats, steaks and hotdogs directing consumers to your cooler section? Sometimes we all get in ruts and we fail to look outside the box for new and creative ideas to keep a business fresh and improve sales.

     There are the stores out there that just seem to always maintain the same set up and merchandising year in and year out. I can think of a local hardware store I sometimes go to when I don’t feel like fighting the other shoppers at the national hardware chain stores. When I do go to this particular store I usually have to search a bit to find what I need, it isn’t super neat but everything seems to be where it has been for the past fifteen years I have shopped there. It does make me wonder if the owner is trying to reach out to new customers or worries about the competition from the big box stores. A few changes now and again could probably make an impact on sales but that is a choice that owner has to make. What kind of changes would I suggest? I would put out new signs to let customers know about any sales that are running. Place gardening tools and gloves, tillers and lawnmowers at the front of the store. If the store has electronic article surveillance towers, upgrade them so that advertising panels can be interchanged and catch customer’s attention as they walk in.

     Seasons change and retail stores should too, before the beginning of the next season. Take a look at a national clothing retailer the next time you walk into a store. It may be January and they will start putting out swimwear when you are still wearing a jacket. Smaller retailers can take a lesson from the large chain stores. I am not saying to become them, but there are some tips and tricks you can take away. March is here and now is the time to rebound from your winter season and spring into action by driving those summer sales.

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An Attitude Of Service Or Just An Attitude? Attitudes Affect Customer Service

January 31, 2019 by Leave a Comment

This is going to seem a bit odd to some of you but I want to know if you have an attitude? Store owners, do you have an attitude? Store Managers, do you have an attitude? Has anyone taken a look at the attitude of their employees? EVERYONE has an attitude, the statement isn’t necessarily a negative it can be positive. The problem is we have grown accustomed to thinking of it with a negative connotation. Why is that? Because in some form or fashion we have adopted the idea that an “attitude” shows our independence or ability to be self-reliant regardless of what others think. At times it can be very course and abrasive to others. If that is your “attitude” how does that relate to your customers, or those who work for you? I would like you to consider for a moment that an “attitude” may look more like a chip-on-the shoulder than some sort of independence (in some cases if looks like a boulder more than a chip).

     An owner with a poor attitude makes the job more difficult for the managers who work for her or him. The “I’m the boss” temperament may be unstated but if that is how an owner thinks it can reflect into how they give direction and interact with their managers. It frequently means that no one else can have a better way of doing things and leads to a stale operation. I will also tell you that the negative attitude rolls downhill.  The way you interact with your managers will be reflected in how they interact with the store associates and they, in turn, have attitudes with the customers. I have seen it in action and I can tell you I have experienced it and have allowed it to impact my interactions with my team in spite of my best intentions. By the end of a workday, everyone leaves in a grouchy mood. 

     The attitude of the owner affects the attitude of the managers has a direct impact on your customers who don’t have to shop at your store. I happen to work for a company that has two stores in the immediate area. On more than one occasion we have heard comments from customers that they don’t like to go to the other store. They tell us the customer service is poor and the employees are not friendly. On the other hand the manager of the store where I work makes a point of telling the managers they are to do whatever they can to keep customers happy (within reason and without violating policies). Employees may get busy but they enjoy working for this manager. The atmosphere is welcoming and we make every effort to greet our customers and offer assistance when they walk into the building. I have gone into the other store and the climate is different. If a greeting is offered it is more of an obligatory hello that a genuine one.  

     What is the climate in your store? What do your managers and employees think about your management style? If you aren’t concerned think again. If your store employees are providing poor customer service to customers because of the treatment they receive it as a direct impact on sales and a direct impact on theft prevention. Shoplifters who have been interviewed have said that they target those stores where employees are unhappy. They don’t have to worry about someone trying to give them too much attention. If shoplifters aren’t receiving service, neither are your customers and that means no one is trying to sell let alone up-sell for a store. 

     Customer service starts with leadership. When the management team seeks to make the climate one where employees enjoy coming to work that attitude will be reflected in the interactions between workers and customers. Owners and managers cannot assume the team is happy. Truly anonymous employee surveys will help gauge what employees are thinking. They can also be a tool for seeking ideas about what employees might want to see done differently or an outlet for ways to improve. Happy employees make a world of difference. What is the climate in your world? Is everything great or is an attitude adjustment in order? 

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A Proper Reflection Of The Past Year Can Make The New Year Even Better

January 1, 2019 by Leave a Comment

It is January and you are ready to get started on your new year. What does the start of a New Year look like for your business? Are you still trying to move out seasonal and clearance merchandise? Are you preparing to trim back payroll by releasing seasonal employees? Maybe you are already thinking about inventory and what you will need to do to prepare for that day. There are all sorts of ways retail owners and managers start the New Year but I would suggest that before you look forward you take time to look back on the previous year. 

There are a couple of reasons I would suggest reflecting on what the past year has been like for the business. First, by taking the time to reflect on the year you can celebrate the store wins with the entire store team. Employees want to know how their contributions have helped the store meet goals that were set. You may have one or one hundred successes to share but your entire team has put in the work and should be given a chance to share in the successes. It can be a simple cake in the breakroom or a small in-store party but let your employees know that their efforts paid off and are appreciated.  

 Another reason for reflection is that you can evaluate what did not go as planned. This is when you pull out planning documents or action plans and look at what goals were not reached. Did you meet your sales goals? Did you make stock shortage objectives? Did you meet your employee turnover goals? If you cannot celebrate an item as a win you will want to move that to the new store action plan for this year. You and your management team will need to consider what can be done differently to achieve the goals you set and missed. This is not a 5-minute task. This will require the team to drill down to the causes that led to a missed goal and then plan how to improve it. Sometimes this can feel personal and everyone needs to leave their feelings outside the room. Approach the problem as a group and find ways to help each other with action items. 

One of my favorite tools for a New Year is what I have adopted from several workplaces, a “What Works/What Didn’t Work” session. I have seen these done by only a management team but the truly effective sessions include team members and hourly staff. The employees will often provide you with insight into problems you did not know existed. Here is an example; you may think you have a good return policy and your return desk employees are happy. You don’t see anything that indicates problems with your refund program. What you may not be aware of is that your service desk employees are unhappy because they feel that managers are not supporting them after they turn down a refund with no receipt. The managers are called when the customer is upset and the manager arrives and tells the customer they “will take care of it”. Sure, the customers are happy and the policies look like they are enforced but the service desk employees feel foolish and undermined. A “What Worked/What Didn’t Work” session can help you see how you can improve policies, services and improve morale. When you conduct one, make sure you also ask your employees for suggestions on how to improve what they think did not work. Don’t let it simply be a gripe session. It also allows you to clarify reasons some policies may be in place that employees were unaware of before the meetings. 

After you have celebrated, evaluated and set new goals you are almost ready to jump into your New Year. Make sure your goals are realistic and create plans that will be effective in achieving those goals. If reducing shortage by .5% is your goal, you may want to install an Electronic Article Surveillance system. If making your hiring process easier and reducing paperwork is a goal, Loss Prevention Systems, Inc. can help you with their Applicant Management Center. If parking lot break-ins are an issue you can request improved lighting from your property management company. If you need help in risk assessment and loss reduction Loss Prevention Systems, Inc. offers a consultation package that involves everything from an onsite visit to a comprehensive loss prevention policies and procedures package. 

Start your year off right with a look back at the previous year. Share wins, evaluate opportunities and work as a team to create plans that will lead to an even better year than last. Make 2019 a year of growth and prosperity and consider taking Loss Prevention Systems, Inc. along as a partner!

 

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