retail security — Page 11

How to Deal with Retail Burnout

February 16, 2016 by Staff Editor Leave a Comment

Burnout is an on-going, serious issue in the retail industry. The industry is so immense and pervasive that all of us, even if we’ve never working in retail, have knowledge of and experience with the problem.

Personally, some of you may be currently struggling with it or have in the past. If you haven’t personally experienced it you probably know friends and family who have. Finally, we’ve all had unpleasant interactions (many, many times) with burnt out sales clerks, managers or customer service reps.

Last month we looked at why “Retail Burnout Matters” preventshopliftingloss.net/retail-burnout-matters/. This month we’re going to look at how an individual can deal with it at a professional level.

There are many causes and symptoms of burnout. One of the most universal symptoms is a feeling of being stuck. The first place to start if you’re feeling trapped is with a plan of how to get free. People who feel caught often do damage to others and themselves when they try to get unstuck without a well thought out plan.

The first thing you can do is plan how to stay where you are. You may want to stay with the same company in the same store, but need to learn (traditional/online classes, TED talks, books, short term therapy, etc) some stress management techniques to improve your outlook. Many times if you change your attitude and coping skills it’s enough to make the situation better.

Or you may need to plan the next step. Boredom, complacency and restlessness, when not addressed, are often the causes of stress. What kind of change do you need (i.e. sell jewelry rather than candles, increased/decreased level of responsibility, go to a different store with the same company, go to a different company, work in a small boutique or a big box)?

Finally, you may need to plan to leave the field. Retail may no longer, or never has been, your career of choice. If so, then it’s time to figure out how, when and where to from here. For many people establishing some sort of forward momentum, no matter how small, is enough to lessen the trapped feeling.

Having a plan and actively, consciously working that plan is key to alleviating burnout, but it’s not easy. However, the alternative is to stay miserable, and as choices go choosing to stay unhappy is a poor one. As Yoda said, “Do. Or do not. There is no try.”

Nicole Abbott is a professional writer who’s had over 150 articles published. She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction. She’s a coach, lecturer, trainer and facilitator. She has conducted over 200 workshops, trainings, presentations, seminars and college classes.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, employee background checks, Employee Theft, Georgia Alarms systems, Georgia shoplifting systems, Loss Prevention Training, Loss Prevention Workshop, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

YOU CANNOT STOP SHOPLIFTERS!

February 8, 2016 by Staff Editor Leave a Comment

I don’t care about solving social problems. I don’t care about saving the world (okay maybe I really do). But I cannot fix many of these things myself. I cannot make shoplifters change their evil trade for real work. But I can make shoplifters go somewhere else and leave my customers alone.

I have been doing this all throughout my career starting as a Store Investigator through District and Regional Loss Prevention Manager positions. This culminated with being the successful Director of LP for several large Retailers including one international company. Add to that all these years with my own company. I know how to stop shoplifters and what to look for.

If you want to attack shoplifting and fix it once and for all you need to understand who the shoplifter is and how they shoplift. There is not enough space in this article to teach you all that needs to be said. However, there are several important points you must understand to fight off the shoplifters.

First, you must understand that you are not going to “stop” shoplifters from doing what they do. They are going to steal regardless of what you do. What you can do is send them elsewhere. Down the street to someone else who is not prepared. Don’t be THAT guy!

To do this you need to do two things: know your enemy and have the equipment (Checkpoint & Alpha) in place to make your store a hostile environment for them but a delight for your good customers. I am not going to talk about Checkpoint and Alpha here. You know how to reach us for that.

I want to discuss knowing your enemy, the shoplifter. There are three types of shoplifters:

Impulsive shoplifters who steal because the opportunity exists.
Amateurs who steal consistently. They usually keep the merchandise.
Professional thieves who steal to resell the merchandise.

Shoplifters can look like anyone! In fact, if you think you know what they look like, you are fooling yourself. Because you have a stereotype in your mind, then you are missing most of them. Shoplifters will most likely try to blend in and look like your normal customer traffic. That is their stealth: hide in plain sight.

When do they tend to steal? The simplest and best answer is any time you or your staff is not paying attention. I can give you a list but not all of it will apply to your individual store. So do this. Observe your operations, I mean take a hard look. Ask yourself, “When would I steal, if I were a low life scum of the earth shoplifter?” Even better, since you are probably too close to the forest to see the trees, ask someone you trust to look at this. Not a Police Officer, employee….. someone that will give you a real, sometimes hard to swallow answer. Then make adjustments to what and how you operate.

How do they conceal and steal your merchandise? Well, the list is almost endless and you should ask me to conduct my live webinar for you and your staff (my commercial). By the way my webinars are free of charge and can be as frequent as necessary for our customers.

Now that the commercial is over, some of the most common ways they conceal is with pockets and purses. Simple is usually the answer. You also want to watch for shopping bags and baby strollers (also known as shoplifting buggies).

There are other issues you need to understand such as distraction, refunding, tag or package switching and more. But for that I guess you will just need to become a customer or if you already are a customer, simply pick up the phone, call us and schedule the free training.

Have a SUPER February!

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SOCIAL MEDIA AND ITS BENEFITS TO A LOSS PREVENTION PROGRAM

February 8, 2016 by Staff Editor Leave a Comment

Over the past five years or so, social media platforms have exploded. Sites like Facebook, Twitter, or Instagram are essentially a one stop shop for all your news, entertainment and whatever your Aunt Dolly is doing today… Like most Americans, I visit these websites frequently throughout the day (although, I am weaning myself off this addiction slowly, but surely). Businesses have also been quick to jump on the bandwagon and have found that direct to consumer marketing, especially the free kind of marketing, can really help a small business soar. With so many people, places and things interconnected, you can see how the Loss Prevention Industry uses these platforms to not only aid in investigations, but to help track down fencing operations, retail ORC groups and even dishonest employees.

About a month or so ago, I was scrolling through a Facebook “online garage sale group” in my area. A few scrolls down, I noticed a guy was selling a store merchandise credit from one of my stores. I looked up the name in our internal system for any hits and sure enough, it was an employee at one of my stores. A little investigating showed that he had conducted a return of a high end baseball bat, but according to our sales records, the store he worked in had not sold that particular sku. Furthermore, inventory data showed that store to be missing one unit. A little more leg work, and I was able to determine that the employee had altered the price on a high end bat, purchasing it for only a few dollars. He returned the bat for full value at another store and posted the credit on Facebook to sell. From our research, he had done this about a dozen or so times with various merchandise. I was able to make a pretty substantial case from a lead generated from social media.

Take things a little further. Most of you reading this are small business owners. Chances are, you don’t have some large Loss Prevention department; heck, your LP department might be the 16 cameras you have set up in your store. There’s absolutely nothing wrong with that; in fact, without the hassle of a large company’s legal department, you have more freedom with those CCTV images of a thief than I do. Most police departments and sheriff’s offices around the country have also been accepting of a social media presence. From the community outreach and the ability to hear concerns directly from citizens, it’s a great way for law enforcement to take a big step into the future. This also gives those agencies the ability to share BOLOs with an enormous amount of people.

Not two weeks ago, a local sheriff’s office shared some CCTV images from a clothing boutique store that showed a female shoplifter, who made away with several hundred dollars in clothing. The boutique had a very good camera system and shared those images from their Facebook page to the Sheriff’s Office page, who in turn shared it with their followers. Literally, within 30 minutes, the comment section was full of tips, eventually leading to the shoplifter’s identity. Heck, some people even began tagging this woman in her own wanted poster. Classic. Without this platform, this crime may have gone unsolved, and that business would have taken a hit out of their own pockets.

While social media can boost sales and drive traffic into your store, it can only be a great tool to reduce shrink. The ability to quickly search through your employee’s friends, or search in wanted ads for particular items and the ability to share CCTV images quickly and with great success, makes social media almost a necessity of today’s small business’s plan to combat shrink and increase profitability.

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STAYING SAFE DURING AN APPREHENSION

February 8, 2016 by Staff Editor Leave a Comment

What is the most important factor to consider when you make a shoplifting apprehension?

Safety. There is no single factor that is stressed more heavily within my department than personal safety when making a shoplifting detention. Not only do I implore my teams to be vigilant of possible weapons, but to also make sound business decisions before making a detention that could jeopardize their safety, the safety of the employees of the store and the safety of our customers. In the blink of an eye, what seems like another routine apprehension can quickly turn violent.

Play by the rules.

Our industry, over the past decades, has come a long way from the days of chasing down shoplifters by any means necessary. We’ve evolved from brute strength and a show of force, to a more pro-active and analytical approach to shrink, especially the way we approach shoplifting incidents. Enter the 5 steps for an apprehension. Selection, display intent, conceal, maintain visual, exit store. Every LP department, for the most part, has adopted this. In addition to no touch policies, this greatly reduces the chances for an apprehension to become physical in nature.

Cooler heads will always prevail

Hiring someone that cannot control their own temper is a dreaded mistake. Even I am not immune to making this type of mistake. Granted, we ask our agents (and ourselves) to be there to stop someone from stealing from us. Shoplifters come from different backgrounds, and often we are facing career criminals, or those with drug addictions that are not in a stable mindset. More often than not, the shoplifter will immediately escalate a detention from the moment they are approached. How many times have you stopped someone and they immediately began yelling at the top of the lungs every swear words known to man? I experienced this three times this past week for me. This is where a calm, collective LP professional is most needed. What if you started yelling and screaming back? Chances are, things will get ugly. My advice is simple. Act like an airline pilot. It doesn’t matter if the wings are on fire and you’re hurtling towards the earth at 500 mph. That pilot will still speak in the same tone and pace. It’s to keep the masses calm. This technique works great with rowdy shoplifters too.

What if I’m faced with a weapon?

This has happened to me personally on 3 occasions. Once, a heroin addict pulled a knife on me. The second time, a firearm fell from the pants of a shoplifter and the third, my personal favorite, is when I was pepper sprayed by a shoplifter. Even though it was hard to do so (especially my sprayer), I immediately disengaged the apprehension and allowed them to make quick egress of the store. Yeah, I was pretty upset for a day or so that they got away, but the end result is that no one got hurt. That’s the key; there is nothing in your store that is worth sacrificing the safety of anyone for.

There really isn’t another job in the retail industry where personal safety can be compromised in the blink of an eye. I bet that guys in the IT department never have to worry about being pushed to the ground by a maniac as they try to run out of the store with $2,000 worth of cologne. LP is a unique business. We thrive on what others shy away from. While you’re out this week busting thief after thief, please remember your safety, and the safety of those around should take absolute priority above all else. There is nothing in your store that is worth the risk of injury. Be safe and happy hunting.

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Using Social Media To Capture a Shoplifter

January 27, 2016 by Staff Editor Leave a Comment

law-3 Using Facebook, their own websites and other social media outlets, many retailers have for years posted pictures of shoplifters on line in hopes of catching the shoplifter. Posting images and descriptions of suspected shoplifters can be helpful in apprehending them, but it can also be legally harmful to you and to the business if you don’t know the laws in your state regarding shoplifting laws, and you post the wrong images and descriptions of the suspected shoplifter. If your store has an LP program or department, you need to check with them before any pictures are posted on social media. And do you have insurance that will cover you in a potential law suit? Are the shoplifters juveniles? From the time you apprehend a shoplifter till the time you charge them with shoplifting, there are rules you must follow. Check the laws in your state, a lawyer, or the legal department in your store before posting any images on line.

For more about this and other stories, follow the links below.

Local business uses Facebook to catch shoplifting suspect

A small business in Olive Branch is fighting back against shoplifters by using social media.

If the Pink Coconut Boutique catches you stealing, they will post you picture on Facebook. It’s a tactic they’ve always used, and it seems to be working well.

Store manager Debbie Ham recently posted a picture of an alleged shoplifter on the businesses page. She called for the 1.1 million Facebook followers to help identify the suspect.

And in less than 24 hours, 25-year-old Christian Tatum was identified.

“The fans were very upset (because) we do keep our prices down at the Pink Coconut,” Ham told FOX13.

This is not the first time the store has done it. They use the practice to help keep prices low.

Police would not comment on the matter. They only said it was the Facebook post that led to Tatum being identified.

“We do have 30 cameras in our store that we are very quick (to use). If there is an incident, we take our camera and review our video and burn a CD and we also post it to social media,” Ham said.

With millions of Facebook fans, the post led the Pink Coconut getting swamped with people reporting the accused criminal.

Shoplifting Laws by State

Alabama Shoplifting Laws

Detention and arrest of person suspected of larceny of goods held for sale.

(a) A peace officer, a merchant or a merchant’s employee who has probable cause for believing that goods held for sale by the merchant have been unlawfully taken by a person and that he can recover them by taking the person into custody may, for the purpose of attempting to effect such recovery, take the person into custody and detain him in a reasonable manner for a reasonable length of time. Such taking into custody and detention by a peace officer, merchant or merchant’s employee shall not render such police officer, merchant or merchant’s employee criminally or civilly liable for false arrest, false imprisonment or unlawful detention.

(b) Any peace officer may arrest without warrant any person he has probable cause for believing has committed larceny in retail or wholesale establishments.

Kohl’s shoplifters identified after public’s response to released photos

D’IBERVILLE — A surveillance picture released to the media has helped lead to the identity of two women accused of shoplifting and assaulting a Kohl’s employee, police said.

Police obtained arrest warrants for Michelle Quin and Tykeshia Barnes, both 18, and released their names Monday.

Deputy Police Chief Clay Jones said a third woman who appeared in the surveillance picture was not arrested.

Quin and Barnes each face charges of shoplifting and simple assault.

Police said the store on Promenade Parkway had reported the women stole merchandise Jan. 8 and said two of the them assaulted a loss-prevention officer who tried to get them to return inside the store.

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Let’s Make 2016 a More Profitable Year

January 18, 2016 by Staff Editor Leave a Comment

Let’s make 2016 a more profitable year by stopping losses before they occur. Think of it, as a retailer you run your operation, purchase and then sell the products you offer and try to hold your expenses down. But when you have employees that cause inventory theft, cash theft or any other loss it comes right off your bottom line and out of your pocket. The key is to keep theft from occurring before it happens!

Do you really know who is working for you? It is inexpensive and easy to find out. You should screen EVERY person you hire. Even after 20 years of running pre-employment background checks on people for our clients we are still amazed and what we see. It is not unusual to see drunk driving, theft, assault, shoplifting and even some very violent criminal records. Do you really want people like that working for you? That is like pointing a gun at yourself and hoping it is not loaded. People who are not responsible in life are not going to become magically better because they work for you.

Most states allow a statewide criminal records check. If not then we look in the counties they have lived in.

Another check that should be run is a credit history. This can be done on people that will be handling your cash and other assets. My wife was once the Branch Manager for a large chain of banks. The banks policy was to look at the credit history of the people that they were considering for employment. Their thought process was “If you cannot handle your own money why would we want you to handle the banks or the customers?”

Another check should be to verify that they are not on a sex offender list. Imagine this. You hire someone. They sexually assault a customer or another employee. Even if it is simply alleged and then investigation shows they are on a list. Your liability just skyrocketed.

In the past we could simply say we did not know that they were a sexual predator, criminal, thief…. But that is not the case anymore. The courts have leaned towards the position that it is easy and inexpensive to screen someone so if you do not you may be left in a terrible position both criminally and civilly.

So attack loss in 2016 up front. Get your employees background checked, screen any new employees and then follow up with an annual check. It may just make your year more profitable and one with less headaches.

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FISCAL INVENTORIES FROM AN LP POINT OF VIEW

January 18, 2016 by Staff Editor Leave a Comment

With January the last month fiscal month for plenty of retailers, we can all look forward to *drum roll* INVENTORIES!! Wait, am I the only one excited to count millions of pieces of merchandise in a single night? I’ve always been the odd-ball in my department I guess. Inventory is a great way to start a new fiscal year off. Clean inventory counts, accurate pricing and getting back in stock is the key to making sales in the 1^st quarter. Remember, customer service starts with being in stock!

I am responsible for nearly 30 stores, so it’s practically impossible for me to get out each store’s annual inventory, however I do manage to see a few. I’ve also built up quite a few pointers, from an LP perspective that is aimed at helping managers and making the counting process that much easier. As my Christmas gift to you, I’ll share my top 5 best practices.

Do you have basedecks?

Those are the bottom shelves of your gondolas. They make great hiding spots for employees to stash product. About one week prior to inventory night, it would be a wise idea to assign someone to go aisle by aisle, lifting up every single basedeck in the store. I normally find the equivalent to 5-7 shopping baskets of product hidden underneath. This equates to thousands of dollars that would have otherwise been written off as shrink.

What about warehouses, common areas and offices?

I find these ripe with stashed product and it drives me up the wall. Again, look in all areas that are common “hiding places” to pull all of that product out so it can either be sold… or counted.

You don’t have time to look for SKUs on inventory night!

This one is aimed at soft goods and apparel mainly. I’ve seen stores write off hundreds of apparel items because a sku could not be located 13 hours into the count. Go rack to rack, at least a few days prior and make sure everything is tagged with a scannable bar-code. Trust me, this will save you time, energy and money on inventory night.

Do you have storage containers?

You would not believe how many times I’ve seen stores post losses of $10k+ on inventory night, only to realize 3 days later that they failed to scan an entire storage trailer of product x. Don’t be this store. I find that pre-counting these areas is much more effective than counting on inventory night. Just don’t forget about them!

Don’t let just any associate scan/count!

This is for you retailers out there that scan your own inventory and who don’t rely on an outside agency. I see it year, after year. Managers try to get as many people scheduled to work that night, and now your trusting some of your worst employees with your greatest financial investment (your inventory). Choose quality over quantity. Please, believe me when I say this; 1 person can completely ruin an inventory. One lazy employee who is 1 tardy away from being terminated does not care one bit about your shrink and how it affects the store’s bottom line, or your pockets. I beg you, please only let those that have a vested interest in your store conduct your inventory. I’ve seen cases where one employee had single-handedly scanned an entire stock of baseball bats as one single sku. This mistake wasn’t caught until replenishment on every single bat started hitting the stores. It was a complete disaster. Don’t let this happen to you!

I hope you all had a safe and enjoyable New Years. I hope 2016 is profitable, prosperous and full of (good) surprises. I hope your 2015 inventory is just the same.

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COMBATTING RETURN FRAUD WITH CUSTOMER SERVICE

January 18, 2016 by Staff Editor Leave a Comment

I’m seeing a huge spike in return fraud, so I’m betting you are too. For my particular stores, it is a huge problem. I will venture to say that it is the biggest and most financially impactful fraud scheme that is affecting my stores; and it’s only getting bigger. I’m fortunate enough to have a small team within our LP department that do nothing but review returns data. When they see something that is indicative of fraud, we actually cancel the store credits unless proof of purchase can be verified. We are poised to break 5 million dollars in suspended store credits this year. Insane.

My company only operates a little over two hundred stores, so that number is quite high. That is 5 million dollars in external theft that we recovered. I have my own theories on why this is a growing problem and a few solutions that any retailer can adopt to help limit your exposure to this madness. Would you believe me if I told you that most return fraud can be prevented with a simple “hello”?

Customer service is the most proven and effective way at deterring criminal activity in your store. A simple greeting, acknowledgment and/or engaged employees can, and will stop most would-be thieves. If your employees are engaging with all of your customers, this will prevent the theft from ever happening. If there is no theft of product, then there can be no refund of stolen goods. See where I’m going with this?

Every store that I visit and audit that I conduct, it seems as if I’m noting some challenges in the customer service department. Do you really think that your product is that great and your prices that low, that the customer absolutely must purchase their item at your store? If you think this, then I hate to be the one to tell you this, but you’re wrong. Customer’s come to your stores for more than just an item; they want to feel as if they are appreciated. It’s your job to make that happen. Likewise, by providing exceptional service, you are not only increasing your sales, you are reducing shrink.

Here’s a case study to help drive home my point:

Susie G is a thief. She’s only hooked on heroin and needs a daily fix. She’s unemployed so she resorts to stealing to fuel her drug addiction. She’s learned from some of her buddies that “Store X” doesn’t have strong controls and it’s super easy to steal from them. Even better, you can come back later and return the stolen merchandise and they’ll give you a gift card. (How nice!) She learns that she can easily sell that gift card for quick cash in the parking lot, or at a local pawn shop. Thus, a small criminal enterprise is born. Susie then tells all of her heroin addicted brethren and before long, groups of 5 and 6 are targeting your store and committing return fraud on a daily basis.

Why did Susie and her friends find it so easy to steal from you and not the store down the road?

I’m not going to put an answer here. I want you, managers and owners to stop for 10 minutes and really think about this question. What can you do to prevent this in your store? Can you up your customer service game? The answers may surprise you.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Security, anti-theft tags, anti-thefts devices, Georgia shoplifting prevention, Georgia shoplifting systems, POS ROI, Prevent Shoplifting, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

Retail Burnout Matters

January 15, 2016 by Staff Editor Leave a Comment

The holidays are over and all over the country retail personnel are saying, “I can’t do that again. I’ve got to get out of retail.” Some of them are, understandably, experiencing a momentary stress or anxiety reaction. After they’ve had some time to de-stress they’ll bounce back and want to stay in the field.

Others, however, may be experiencing burnout, which is a more serious condition. Instead of being a temporary reaction to a specific situation (the demands the holidays make on retail staffs) burnout is a state of chronic stress. People won’t “just get over it” now that the holiday have passed, because it’s more than “having a couple of bad months”.

Over time constant stress can alter a person’s mental, emotional and physical well being. Some of the symptoms include: a lack of or loss of enthusiasm for the job and personal interests, physical and emotional exhaustion, depersonalization of others, cynicism, detachment from surroundings and people, feelings of ineffectiveness and a low sense of personal accomplishment.

On a professional level this affects their day to day work performance, as well as their relationships with co-workers and customers. By the time people become burnt-out they usually have developed new – and escalated already existing – undesirable attitudes and behaviors.

In many cases their work ethic and moral compass slips. This directly affects the store’s bottom line, as they no longer function effectively. This results in: theft of time, money, product and supplies, sloppy paperwork, inattention to security issues and procedures, indifferent or rude customer service, poor inventory control and no vendor oversight.

In addition to the financial consequences, they often create a problematic work atmosphere. Burned out people are dissatisfied people, and those with limited awareness of their condition will blame other people, places and circumstances for their difficulties. They become the complainers, pot stirrers and nay-sayers.

Their changes in behavior and attitude can be difficult to see at first because burnout “sneaks up”. People don’t all of a sudden wake up one morning and have burnout, nor does it abruptly go away. It’s developed over time and will only get better if it’s acknowledged and dealt with. The sooner co-workers and supervisors confront their actions the better for all concerned.

Nicole Abbott is a professional writer who’s had over 100 articles published. She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction. She’s a coach, lecturer, trainer and facilitator. She has conducted over 200 workshops, trainings, presentations, seminars and college classes.

Filed Under: Shoplifting Prevention Tagged With: Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Spider Wrap, Anti-shoplifting training, anti-thefts devices, EAS Devices, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, POS ROI, Prevent Shoplifting, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

Merchandise Return Fraud

December 30, 2015 by Staff Editor Leave a Comment

Shoplifting during the holidays is a big problem for retailers in the United States. The holiday season brings more customers into their stores, but shoplifters know this and they take advantage of this fact to go into the stores and walk out with hundreds of dollars in stolen merchandise. But after the holidays, you are dealing with another kind of fraud. Merchandise return fraud has seen an increase over the previous year, and retailers now have to deal with this problem after the holidays are over.

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

Post-Holiday Merchandise Return Fraud

Retail theft statistics show that the vast majority of returns are legitimate and part of doing business as a retailer.

Returns and return fraud are a big issue—and getting bigger. In 2014, $284 billion worth of retail merchandise was returned in the United States,according to the Retail Equation. That represented a 6.2% increase over the prior year, and 2015’s numbers are expected to grow even higher. Brick-and-mortar stores report returns in the 5-10 percent range. E-commerce retailers report numbers averaging 10-15 percent, with returns of apparel running as high as 20-30 percent. The research firm IHL Group estimates that, overall, returns cost retailers 4.4 percent in revenue that is lost on items that can’t be resold or must be discarded.

Within the retail loss prevention community, when returns are mentioned, most focus on return fraud. To be sure, it is a huge issue with volume estimated at $9.1 billion, again according to The Retail Equation. When return abuse is added in, that number jumps to an estimated $15.9 billion. But, as large as these numbers are, it is estimated that return fraud and abuse only make up about 6.1 percent of returns. So 94 percent of all return transactions (equating to $245 billion) are legitimate.

Retailers Estimate Holiday Return Fraud Will Cost Them $3.8 Billion, According to NRF Survey

WASHINGTON, December 19, 2014 – Techniques and processes put in place to thwart criminal activity around retailers’ return policies continue to be put to the test, and with steadily improving retail sales, even more is on the line when it comes to losses from return fraud.

According to the National Retail Federation’s 2014 Return Fraud Survey* completed by loss prevention executives at 60 retail companies representing grocery, department, discount, specialty and small retailers, the industry will lose an estimated $10.9 billion to return fraud this year. Additionally, of those surveyed, retailers estimate $3.8 billion will be lost to return fraud this holiday season alone, up slightly from last year’s $3.4 billion. Overall, retailers polled estimate 5.5 percent of holiday returns are fraudulent, similar to last year’s 5.8 percent.

“Today’s sophisticated technology does well keeping criminals at arm’s length but often isn’t enough to completely stop the unethical practices of organized and individual retail fraud occurrences,” said NRF Vice President of Loss Prevention Bob Moraca. “Return fraud has become an unfortunate trend in retail thanks to thieves taking advantage of retailers’ return policies to benefit from the cash or store credit they don’t deserve. Additionally, many of these return fraud instances are a direct result of larger, more experienced crime rings that continue to pose serious threats to retailers’ operations and their bottom lines.”

Reflects on How a Shoplifting Charge Changed Her Life

Shoplifting consequences that ended a 35-year career in journalism.

On February 11, 2012, officers of the Tucson Police Department cited former Tucson KVOA news anchor Martha Vazquez on a shoplifting charge. According to the report that was filed, Vazquez was cited for shoplifting at the Dillard’s in the Tucson Mall after a loss prevention officer observed her conceal an Eileen Fisher jacket value at $338.00. After she was detained, a search of her belongings also yielded a pair of Kenneth Cole sunglasses valued at $30 that had also been shoplifted.

Vazquez said that after the shoplifting charges ended her 35-year career in broadcast journalism, her life hit “rock bottom.” She resigned her prominent position, sank into a deep depression and left Tucson for Washington State. Now, Vazquez says the time that she spent out of the public eye in Washington after her incident in 2012, was “a healing journey.” She is now back in Tucson; is being treated for depression and says that she wants to help others.

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