Big corporations across the globe worry about cybersecurity attacks and the repercussions those attacks have on the corporation’s bottom line. These cybersecurity attacks to their servers and information databases can be costly and can bring with them costly lawsuits as well. But, according to many analysts, employee theft and shoplifting are the more concerning issues affecting the retail industry. They alone account for more than two-thirds of their shrinkage and that figure seems to be rising every year. During the holiday season, those issues become more problematic and costly, and the retail industry looks for ways to prevent the great loses they will certainly suffer during this jolly time.
For more about this and other stories, follow the links below.
This crime in the workplace is costing US businesses $50 billion a year
There is a hidden risk facing small businesses across the country that often goes unnoticed until it suddenly rips through a firm’s finances: employee theft. It’s a crime that is costing U.S. businesses $50 billion annually, according to Statistic Brain.
Matt Ham can attest to that. He has had two run-ins with thefts by employees at his small business, Computer Repair Doctor, which has eight stores in Florida, Ohio and South Carolina, which collectively totals 30 employees.
At a store in Florida, two employees were caught stealing parts from inventory and skimming cash about a year and half ago, he said. After a thorough investigation, Ham sat them down with his attorney and they came up with a plan for restitution. Both employees had to pay back the thousands of dollars they stole. The chain has now put more safeguards in place, such as better inventory controls and a strict cash-counting process.
Survey finds no let up in one of retailers’ biggest threats
Nearly all retailers fell victim to organized retail crime during the past year. And the losses are mounting.
The survey of retail loss prevention employees found that losses averaged $726,351 per $1 billion in sales, up from $700,259 last year. Los Angeles continued to be the hardest-hit area for ORC in the nation, a position it has held since 2012. Following in order were New York City, Houston, Miami, Atlanta, Chicago, Orlando, San Francisco/Oakland, Orange County, Calif., and Northern New Jersey.
“Organized retail crime continues to be one of the biggest challenges to retailers of all sizes,” NRF VP for loss prevention Bob Moraca said. “These crimes happen across the country every day, with criminals getting smarter, more brazen, more aggressive and sometimes even attacking store employees and shoppers. Fighting ORC is a full-time job, and retailers must learn how to stay a step ahead of these thieves.”
Loss Prevention Trends to Watch During the Holiday Shopping Season
All retail eyes are focused on online security and digital transactions during the holiday season. But according to the National Retail Federation (NRF), shoplifting and employee theft accounted for more than two-thirds of inventory shrinkage in 2016. Retailers need to improve their internal security systems to boost their loss prevention abilities and keep their shrink rate from rising above last year’s historical high of 1.44 percent.
Retail store shrinkage is a known part of the industry, but with all the attention centered around cybertheft of customer information and implementing proper security measures at point-of-sale (POS) systems, the age-old problem of losing products at the physical store has taken a back seat.
Leveraging Cybersecurity Technology for Loss Prevention
Technology is playing a larger role across all retail efforts, and some of the tactics employed in the back office to protect the company’s digital data can be expanded to store-level prevention. The specifics of the skills needed differ between cybersleuths and on-the-floor store personnel, but more education and discussion between these disciplines can help.
Could it be that Santa Claus is not always a jolly, giving man? Oh yeah. Take a
A New Year is just around the corner and once again resolutions are going to be made and many of those will fall by the wayside. Why does that happen? Are goals too big to achieve? Sometimes we all start off with good intentions and we just get caught up in our normal routines and we can’t seem to focus on what it was we wanted to get done. There may be a manager out there who resolves that this is the year they will meet quarterly with each employee and discuss performance. They might do well the first quarter but then as the demands of the job take up more and more time something gives and it was the meetings. I recall one of my resolutions was to be more organized at work. I had a filing system, it was called my desktop and I knew where everything was at. I would make my resolution, create a filing system and you guessed it by the end of January I was back to my old habits. My intentions were good I just wouldn’t stay focused on it and made excuses.
You know the drill. At the end of the day, you find your merchandise tags on the floor or hidden in your fitting rooms. Shoplifters bring your merchandise into a fitting room and put it on under their clothes. Sometimes many layers of your apparel are under the clothes they wore in.
I wonder if Santa Clause conducts background checks on his newly hired elves? I’ve been contemplating the chaos that would take place in Santa’s workshop if he just hired any old elf to work for him. Does Santa ever get into a time crunch right around June and bring in seasonal hires to help meet timelines to get all of the toys made? Imagine the pilferage that would ensue if Santa’s Helpers haven’t been properly screened for criminal activity before being brought on board. Defective dolls might be delivered to darling little girls who deserve better. No firetrucks for a little fella because a fiendish elf stole it.
“Dashing through the snow in a one-horse open sleigh…” OH BOY, this is one of my favorite times of the year! Christmas time and the other holidays just make it special for me. The television specials, the music, the foods and treats and the decorations all combine to just give a warm feeling. I even feel like people tend to be friendlier and more helpful to each other. Then there is the shopping to do, going out to window shop or find that perfect gift for someone(s) special in our lives. Living in the South we don’t often get to dash through the snow but when you live up in the northern states you can add the winter frolicking to your holidays. Even if we haven’t experienced it almost all of us have seen pictures or movies with reindeer dashing through the snow pulling Santa’s sleigh. There’s something about it that evokes a bit of childhood magic.
It might be too early for retailers to prepare for the holiday season, but it is never too early to implement security measures to prevent shoplifting in their stores. The holiday season attracts more customers than at any other time of the year, therefore shoplifting incidents increase with the increase of customers as well.
A Department of Corrections officer was arrested this week at a Walmart for shoplifting. The perpetrator was a former Walmart employee who had left to become a corrections officer. The incident was reported to the authorities, indicating the amount stolen was around $400 dollars during 45 visits at that particular Walmart.