How Does Your Leadership Style Impact Your Store?

Leadership. It varies from person to person and company to company. As a business owner how you lead your team impacts the overall health and prosperity of your store. Does your team work for you and follow direction out of a feeling of obligation or fear? Do your employees do what they are told to do because of a concern that failing to do so could result in the loss of their job? If this is the feeling of the store associates they may not be doing more than the minimum to get their jobs done. This affects customer service and how employees interact with patrons. Poor service results in poor sales and inefficiency in operations. Leadership is as important as customer service and I would argue the two go hand in hand. I cannot think of a customer service driven business where the delivery of customer service thrived when the managers were loud, bossy or came across as distant.  

     Personally I have attempted to incorporate in my own management style a mix of a couple leadership influences. One is advocated by John Maxwell. The first book of his I read was, “The 21 Irrefutable Laws of Leadership”. In his book he lays out what he describes as 21 principles that apply to leaders. There were a couple of his points that I made a conscious effort to apply (some were already an integral part of who I am) when I was leading my Loss Prevention team, my freight unload/ stocking team and as a Manager on Duty. Two of the characteristics Mr. Maxwell lists, “The Law of Solid Ground” and “The Law of Empowerment” are dimensions I believe can make a major shift in how a store team functions. The first idea is that people have to trust their leader. As a leader do you follow through on commitments to your team? Do you treat every person equally and fairly and do you provide honest feedback even when it may be difficult? The second is that strong leaders are not afraid to give power to others. As you empower your team to make decisions you build their trust in you and you are developing them into leaders. This means you train your team, set expectations and as they are learning, you correct and provide recognition to them.  

     Another leadership style I embrace is servant leadership. This manager is the leader who leads by the example he/she sets. It is also a manager who invests in the development of others. I have incorporated this in the course of my careers. Rather than ask a team member to clean up after a child has been sick in the store I have done it myself. As a freight team manager I frequently came in on a day off to help my team unload a truck and push freight. It is the willingness of the leader to be seen doing the unpleasant tasks alongside the rest of the team. A 70 foot trailer gets awfully hot and humid in the south during the summer. When your team sees you willing to get in that trailer first and rotate others out to avoid exhaustion they are willing to work harder to get the tasks done. Servant leadership does not mean supervision does not take place or that discipline is not occurring. It only means that the manager/supervisor attempts to be empathetic to situations where discipline may be required. These leaders do not allow themselves to be doormats but do look at individual circumstances when the situation warrants it. Think about how an employee is likely to respond to this manager as opposed to the heavy-handed supervisor who gives orders and barks directions.  

     Leadership styles directly influence the way a business operates and how employees function on the job. Yes, you can be the owner and expect workers to do what you tell them to do, but it won’t foster a happy workforce. A leader who cares about the staff helps in their development and empowers them to make decisions will get far better results than the other leader. As customer service improves, productivity improves and the atmosphere of the building is one where shoppers enjoy spending time. It also creates a customer-focused climate where sales associates are actively engaging clients and that leads to a reduction in theft. Happy employees are also less likely to steal and that can impact up to 30% of where shortage traditionally takes place. 

     Evaluate your leadership style. Are you leading the way YOU would want to be led and are there adjustments you can make that can enhance nearly every aspect of your business? Leadership determines how successful your store can be. 

Tips That I Wish I Had Learned Before Entering Loss Prevention      

Loss Prevention is a wonderful career choice that can lead to other positions in retail. There are, however tips I wish I had known before I began the job that would have prepared me for the adventure I was about to embark on. I started out in a Loss Prevention Associate position after spending four years as a U.S. Air Force Law Enforcement Specialist and another 2 ½ years earning a Bachelor’s Degree.  I was offered the position and to be honest I went into it with the mindset that this was a Law Enforcement position in civilian clothing. There was nothing that really dissuaded me from the notion as I was taught to catch shoplifters, use closed circuit television cameras and electronic article surveillance equipment. I assisted with employee theft cases but these were few and far between. It was not until later when I had been a Loss Prevention Manager for several years before I started to understand the real role of Loss Prevention in a store. With this is mind there are some things that I would like share with those entering the profession that can be eye opening and prepare them for the job ahead.

  • You are not the retail police – Unfortunately it is easy to fall into the trap of believing you are an arm of the police department. You aren’t. You can and should build strong partnerships with police but you are not protecting the community. Your job is to make your store profitable. You need to learn about stock shortage and all of the ways it happens. Yes, you need to learn to identify, prevent and maybe catch shoplifters. You also need to add to that knowledge how employee theft occurs, how to identify it and investigate it. You also need to understand vendor processes, how to read invoices and credits. You should spend time learning and stocking freight and where operational shortage takes place. Become intimately familiar with cashiering procedures and cash office functions. Each of these areas of responsibility impact store profits and the more you know the better you become at multiple areas of the store.
  • Hiring and Supervision – You may only be starting as a Loss Prevention Associate but if you are smart you will partner with the hiring manager. Ask to be part of the store application review process. Learn to look for the red flags on a candidate’s application or resume that could spell trouble if that person is hired. You can be a valuable partner in helping in the hiring process. As a Loss Prevention Manager you will review applications, resumes and conduct the interviews. You will need to know your company’s hiring process and whether it includes a drug test or background check. While we are discussing it lets also talk about who you decide to hire. Hire people with skill sets that are different from yours. While I would not discourage you from hiring someone with Loss Prevention experience be mindful that that candidate may be more difficult to train. They will bring along training from other retailers that may not be in keeping with your store best practices.
  • Trainer and Leader – Get ready to train others and not just Loss Prevention personnel. You will be training store associates on electronic article surveillance alarm response. You will train cashiers on till tap and short change artist prevention. You will train employees on robbery procedures. You may work with the stock team on how to identify mis-shipped merchandise. Show them how improper stocking affects shortage and inaccurate merchandise reordering. You could be required to conduct new hire orientations. You will also instill in the whole team the importance of customer service as a means of reducing theft but also how it drives sales. As a leader you will request appointments to meet with other managers and discuss operational matters. The more informed you are in how things work the better prepared you can be to help improve operational procedures.

Clearly there is much more that a Loss Prevention professional can add to the store than just being a person who catches shoplifters.

     The core roles and responsibilities of the Loss Prevention team entail the reduction of retail shrinkage and even maintaining a safe shopping environment. You may not be a first responder but you could be the first person called to an accident inside or outside the store. Frequently it is the Loss Prevention personnel who are first called to find a lost car, lost child or stolen purse. You will be the one who has to calm an irate customer. Learn from these tips I am sharing. You aren’t going to be a police officer, you are going to be a Retail Loss Prevention Professional and that is a quite a job! 


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

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!


Employee Theft And Safety

Are you a small business owner dealing with the security of your store? Are you tired of not knowing where the losses are coming from? Employee theft and shoplifting are two of the major losses retail stores across the United States face every day. The millions of dollars the retail industry loses every day are due to employee theft and shoplifting, so how do you prepare yourself from employee theft?  Employee background checks can be a first step in dealing with employee theft.  Paying for background checks for your employees is investing in the future of your store.  Training them and going through the hiring process takes time and money.  By hiring the right people the first time, you save time and money that can be spent elsewhere.

For more about this and other topics follow the links below.


5 Smart Ways to Prevent Employee Theft

Do you know how much money you lose every year to employee theft? Read our article to find out how to prevent or reduce those losses.

As a retail business owner, you understand the risks you take by hiring a staff you don’t know. It’s difficult to build a whole lot of trust in a small amount of time, but you must. Still, employee theft is a more prevalent reality than you may realize.

Research conducted by four different agencies – the Association of Certified Fraud Examiners, Easy Small Business HR, the Institute for Corporate Productivity and Jack L. Hayes International Inc. – show that workers are daring with their pilfering. Shoplifting is a big enough risk for retail shops, being 35.6 percent of the source of inventory shrinkage, but employee theft comes in at 42.7 percent.

Annually, businesses in the United States are losing about $50 billion to employee theft. Also, 75 percent of employees admit having stolen at least once from their employers. Those are sobering statistics. However, there are a few precautions and actions you can take to reduce the chance of being ripped off by those you’re paying to work for you.


Convenience store manager fires gun after shoplifting incident

INDIANAPOLIS (WTHR) – An E. Washington St. convenience store manager is under investigation for firing his gun at a shoplifter.

It happened Monday night at Sam’s Food Mart & Tobacco Store.

Eyewitness News spoke with one of the store clerks about why the manager decided to fire his weapon.

The clerk said the shooting happened after his co-worker chased a customer through the front door and into the parking lot. The shoplifter left with a couple of items without paying for them.

Someone flagged down an IMPD officer to report the incident.

Eyewitness News has learned the shoplifter stole a bag of Planters peanuts and a package of Hostess Zingers.


Shoplifters of TVs Held in Death of 81-Year-Old Sears Worker

Authorities say an 81-year-old Sears sales associate was killed by two men who shoved him down while stealing television sets.

COLUMBIA, S.C. (AP) — An 81-year-old Sears sales associate was killed by two men who shoved him down while stealing television sets from a South Carolina store, authorities said Wednesday.

Sheriff Leon Lott said he charged “two punks” with murder as well as strong-arm robbery when Duaine Hamilton died, four days after his head hit the store’s concrete floor.

“It wasn’t a struggle. They just struck him. He’s 81 years old. He attempted to stop them by standing in front of them and they just attacked and knocked him down. And they still stole the TVs,” Lott said at a news conference.

Jeffrey Simmons, 58, was arrested Friday, and Jason Randolph, 40, was taken into custody Wednesday after a traffic stop, deputies said.