The Scary Truth About Not Preparing For Holiday Foot Traffic

I remember it like it was yesterday. It was a Black Friday morning and we had lines of customers jockeying for position at 16 front end cash registers, two pharmacy registers, a jewelry counter register and 2 registers at our electronics counter. Sure, there were a lot of people, hundreds if not a thousand at one time but we were handling it. I had our Loss Prevention team monitoring cameras, checking receipts at the front doors and walking the floor with “Security” jackets on to deter theft and prevent fights. The store management team had good plans in place for replenishing freight on the floor and giving employees breaks. I had worked with the Store Manager to control the flow of customers into our building and all had gone off without a hitch, no pushing, shoving or fights. I even had a number of police officers at our front doors aiding us with crowd control. We had really planned for every contingency, or so we thought. The one thing that we had not planned for happened and it was a major problem, our register system went down! The audible sighs, snide remarks, and expressions of anger and frustration were heard in one collective voice. All of our managers jumped into action trying to reboot registers and get systems back online. Ever so slowly we got things moving again but it was a nightmare and it made us realize the scary truth, we had not really prepared for everything as well as we thought we had. A number of shopping carts had been abandoned with Black Friday specials in them and no salesfloor staff available to re-shelve the merchandise.

Can stores prepare for every contingency? Quite honestly, no but that is not to say there should not be a significant amount of time spent planning for holidays and holiday foot traffic. The hard part is knowing what you should plan for and have a contingency plan if something “breaks” which will most certainly happen. What kind of things can you prepare for?

  • Are you hoping for increased foot traffic or planning for it? Hoping is wishful thinking something will magically occur. Small and medium-size retailers have to make good things happen. Big Box retailers are planning months in advance for what their “Doorbuster” items will be for Black Friday. They do bulk purchases of merchandise that will be one-time sellers. LCD televisions are one of the big promos I see each year. These are often not top of the line name brands and they are bargain priced to bring in foot traffic. Get people in the door and hit them with other sale items and promotions. The nasty surprise with this type of gimmick? What do you tell your customers when you run out? Were you fair in how you advertised quantities would be limited, no holds would be permitted, first come/first serve and no rain checks or substitutions will be given out? Be clear in your advertising and let customers who are waiting for that item know how many there really are. You may give out a ticket to each person in line who is waiting for that “Doorbuster” so no one else feels “duped”. You can save a lot of headaches for yourself.
  • Test your equipment. Have a professional come in and test your point of sale registers, your computers, and even your electronic article surveillance pedestals and deactivation pads. Do you normally run two registers during the year? Consider having a third for an increase in customers or as backup if one of your two breaks.
  • Are you intending to run your holiday season with the same number of employees you have all year? That can be a scary decision. If you are planning out your sales and promotions you will see more customers. Failing to have enough staff means you are not giving the level of customer service you need to and people will be put-off with poor assistance, abandon merchandise and leave the store. Not adding staff also means you will run your full-time crew ragged and they may quit. Holiday seasons can be stressful enough without feeling like you’re stretched too thin by your boss.
  • Finally, consider promotions for each of the major holidays coming up in the final quarter of the year. Candy giveaways for those who celebrate Halloween, a drawing for a turkey dinner for Thanksgiving, or a raffle promotion to get people into your building for Christmas shopping, Hanukkah, Kwanzaa, etc.

Holiday shoppers can make your financial year but you must be prepared. Careful planning will pay off in the end. Don’t be scared to step outside your comfort zone to reach new customers and drive profitable year-end sales. 


The Importance Of Expressing Your Thanks For The Staff You Have

With Thanksgiving right around the corner, I thought it would be an appropriate time for me to ask the employers out there how thankful are you for the staff you have? I don’t mean are you just thankful you have people who work for you in a general sense but how thankful are you for what they bring to the workplace every day? Maybe you have never thought about it like that. I’m certain you are thankful that Bobby showed up on time today or Mary Jane rang up customers without a customer complaint. But have you ever looked at how you express your thanks to your team? Maybe your attitude is that you pay them and that should be enough. Perhaps you give your employees a birthday card when their birthday rolls around each year. But is that really sufficient? Is it fair for your employees to expect more from you in terms of recognition?

In an article in forbes.com titled, “66% Of Employees Would Quit if They Feel Unappreciated”, by Victor Lipman, April 15, 2017, the author references, “…a study from Office Team examining the impact of appreciation, or lack thereof, in the workplace.” Quoting the study Mr. Lipman points out two startling findings:

  • 66% of employees say they would “likely leave their job of (sic) they didn’t feel appreciated.”
  • Among millennials, the number of employees who’d leave if unappreciated jumps to 76%.

The author states, “So what does all this mean? I’d call it a short message with a powerful takeaway: Appreciation matters.”I agree with the author’s sentiments. People need to feel like their efforts are appreciated by the supervisors/managers.

What are some of the ways managers can express their appreciation towards their employees? Below are some ideas that can be easy and meaningful:

  • Greet your employees when they arrive to work and say goodbye when they leave. I don’t mean you should say, “Glad you’re here, it’s been a crazy day” or “Oh, you made it on time, what a pleasant surprise!” Be genuine, say hello, hi or it’s good to see you when they come in and have a good afternoon or a great weekend when they leave.
  • Some large retailers have recognition cards they hand out to employees for performance and then have a monthly drawing for a gift card or monetary prize. It may not be practical for a smaller retailer but you can give a Thank-You card out from time to time
  • I work for a business where my superiors have expressed their appreciation with a company travel coffee mug, candy, greeting cards and a gift card at various times on top of emails expressing appreciation for my contributions. All of these make my efforts feel like they are worth the effort. Sometimes it’s the little things that mean a lot.
  • Appreciation may be demonstrated with the assignment of a special project or task that shows trust or gives more responsibility. With that assignment, there must be a verbal acknowledgment by the manager of how the employee’s work performance has merited the responsibility. It would be appropriate to also give some additional incentive if the assignment would merit it.

Aside from the possibility of employees quitting due to feeling unappreciated, it is also possible their performance is tied to how appreciated they feel working for you. According to an article in apa.org (American Psychological Association) from March 8, 2013, titled, “APA Survey Finds Feeling Valued at Work Linked to Well-Being and Performance”; “Almost all employees (93 percent) who reported feeling valued said they are motivated to do their best work and 88 percent reported feeling engaged.”  Clearly, it is in your best interest to find ways to express appreciation to your employees for the work they do for your business. Happy employees will want to make the company they work for successful and that means YOU will be successful.

This holiday season as you consider all the things you are thankful for, don’t forget those who make your business the success it is. Express your thanks and find ways to recognize them, now and all throughout the year. You won’t regret it.


Late Night And Overnight Store Operations Make It Difficult To Prevent Shoplifting And Robbery

I watched a video shared with me by a former Loss Prevention Manager colleague. The video showed three subjects enter a retail store and all appeared to be wearing masks and at least one looked to be carrying a rifle of some type. There were several employees at the front entrance when the subjects walked in and one of the employees seemed to say something to the one who was carrying what I will refer to as a rifle. The video was not the greatest and the camera is pointing into the store from the exterior door so for the most part, the backs of the perpetrators are seen.

The employee who approached the subject standing at the doorway may have said something and in the video, it appears the employee was hit and knocked to the floor. Two of the bad guys raced into the store and shortly afterward ran out and it seems they were carrying bags. I did not inquire as to what was stolen from the store but one person did inquire why this particular retailer was open after midnight (an unusual time of the evening for this company to have the doors to their stores open). It turns out they were open late for a special sale of “Star Wars” toys being released.

The idea of remaining open late into the night has always disturbed me. In my opinion, it invites all sorts of problems. How do you prevent robberies this late at night? How do you prevent shoplifting? What about the protection you should be offering your customers who come to your store so late? All of these are things that retailers should be considering before they make a decision to try to get one more sale or add one more dollar to the register.

 One thing that Loss Prevention departments can do little about is stopping a robbery while it is in the act of occurring. They also cannot control who is coming into a store. This brings me back to the point about store leadership that decides to leave a store open late at night. The idea is that sales are going to surge (for that night or event) and the store has to beat the competition. If a store is going to be open late at night, and the owner/manager believes this is the best business decision my first recommendation is that the store is fully staffed. More employees are a deterrent to thieves and robbers not to mention shoplifters than a skeleton crew.

Customer safety has to be considered and so it is the obligation of management to make sure parking lot lights are all on and working properly. Several weeks prior to the event(s) a thorough inspection of parking lot lighting should be completed and ALL issues fixed by the property owner prior to the event. All exterior building lights must be working to take away areas where criminals may try to lurk. Camera (closed-circuit television systems) installation would be a good idea and today it can be done for relatively little money. Fixed cameras can be installed to monitor front entrances and exits, cash registers, a cash office and even sidewalks and parking lots. Finally, and this can be controversial, hire an armed security officer or off-duty police officer to work the front door of the store.

There are people who have a concern with an armed security officer or off-duty police officer for store protection. This is where the controversy comes in. What if someone(s) enters the store to commit an armed robbery? If that officer draws their weapon to intervene the possibility of innocent customers or employees being injured increases exponentially. On the other hand, an armed officer may be a strong deterrent to would-be robbers and their visibility may prevent shoplifting by being stationed at the front doors. The question remains, what if that one robbery attempt happens and everything goes bad? Store owners and managers MUST take that into consideration before taking that step.

I am not a fan of the late night or overnight store operation. I believe the risks associated with these events along with the possibility of robbery and increased theft, far outweigh the financial gain. Instead, drive profits with great customer service, great values and sales and reduced shortage with the use of retail anti-theft devices. Make safety and security a priority and your employees will appreciate it and customers will reward you by spending money in your store.


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.


 

Policies and Procedures Concerning Shoplifting

Shoplifting crimes increase every year.  Mall security, loss prevention personnel and police departments across the nation work together to prevent shoplifting. But, that is not enough. The National Association for Shoplifting Prevention states that the United States loses billions of dollars every year due to shoplifting, and those statistics are not getting better.  Police departments across the nation are constantly called to these retail store due to a shoplifting incident that they have to take care of. By knowing what the response to a shoplifting is, your employees can readily take care of the problem without jeopardizing their safety.

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


Winnipeg mom carrying diaper bag refused entry to Canadian Tire

What was supposed to be a quick pit stop at a local Canadian Tire has left a Winnipeg mom angry and speaking out.

On Friday, Stephanie Stachowich was trying to go shopping at the Regent Avenue location to buy a few items.

She had her two daughters, 3-years-old and 7-months-old, with her and was carrying a diaper bag filled with necessities along with her keys and wallet.

“As I walked in I saw a staff member spot me right away,” Stachowich told Global News.  “She simply told me straight out I could not bring my diaper bag into the store.”

Stachowich said there were no signs regarding bag policies posted and she wasn’t given a choice to have her bag searched or checked. She was simply told the diaper bag was not allowed in the store.


Theft and drugs having affects on Retail business

A panel of retail and law enforcement representatives discussed recent trends related to drug laws, sentencing reform and retail theft at the Council of State Retail Association’s (CSRA) Annual Meeting in Portland earlier this month.

The topic resonated with the audience for several reasons. The link between drug addiction and property crimes is well-known and drives many policy discussions related to criminal justice reform. And retailers have a front row seat to witness the effects of both addiction and changes in sentencing guidelines.

After voters passed Proposition 47 in 2014, California implemented some of the nation’s sharpest reductions in penalties, reducing many drug-related and theft crimes to misdemeanors. Property crimes in many counties have increased more than 25% since the ballot measure passed and made all thefts of less than $950 a misdemeanor.

Another factor driving up thefts has been the opioid crisis, said Sacramento County District Attorney Anne Marie Schubert. Some California counties had more opioid prescriptions than people in 2016, she said, citing a Sacramento Bee article. (To read the article, click here.)


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.


 

Do You Know Who Is Stealing From You?

Do you know who is stealing from you? It could be anyone.  Shoplifting rings across the United States are now a common practice.  Millions of dollars are stolen every day due to shoplifting, and many millions more are because of employee theft. 

The shoplifter can be anyone; from a grandma, a city employee, or a government official, shoplifters come in all shapes and form.  Police officers have been known to be apprehended when shoplifting, and  juveniles are notorious for stealing merchandise when they visit a store.  Training and awareness from you as a store manager, and from the employees at your supervision, can limit the amount these shoplifters take from your store.

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


Feds Break Up $20M Shoplifting Ring That Stole Clothing From Coast To Coast

Federal authorities say they’ve arrested more than a dozen people and broken up a massive shoplifting network that trafficked in some $20 million in apparel and other items stolen from stores all over the country and then sold in Mexico.

According to a grand jury indictment [PDF] unsealed this week, the San Diego-based defendants allegedly assembled “crews” of shoplifters who would steal items from a variety of stores — Victoria’s Secret, Hollister, American Eagle, Banana Republic — at malls both local and thousands of miles away.

Prosecutors say that this ring pilfered items at stores as far-flung as Washington state, Illinois, and Maryland, all with the intention of transporting the stolen goods back to the San Diego area, and then on to a fence in Mexico.

The indictment details the various roles given to the shoplifters involved in any given theft. There were “team leaders” who selected stores and targeted items within the store, while doing advance scouting for the presence of police or loss-prevention staff. When it came time to shoplift, the team leader would relocate the items targeted for shoplifting, putting them in spots within a store that made it easier for others to steal them.


Former school district employee charged with felony theft

Former St. Cloud school district buildings and grounds supervisor Bryan Brown was charged Friday with felony theft for using public funds for personal purchases, according to a complaint filed in Stearns County District Court.

Brown resigned April 3 after 27 years with the district. He began working for the district as a custodian in 1990. In 2011, he became the buildings and grounds supervisor.

Brown’s supervisor, former executive director of business services Kevin Januszewski, resigned April 6.

After the resignations, the district asked St. Cloud Police Department to investigate the possible theft of public funds at the school district, according to the complaint. That investigation was launched April 7.


Employee theft cost US businesses an average of $1.13 million in losses, according to 2017 Hiscox Embezzlement Study™

NEW YORK, NY, Aug. 23, 2017 (GLOBE NEWSWIRE) — Hiscox, the international specialist insurer, today released the 2017 Hiscox Embezzlement Study™, an examination of employee theft in the US. The findings reveal that US businesses impacted by employee theft lost an average of $1.13 million last year. Small and mid-sized companies (fewer than 500 employees) continue to be disproportionally victimized by employee theft, representing approximately 68 percent of cases.

This is the third annual Hiscox Embezzlement Study, which examines employee theft cases that were active in the US federal court system in 2016.

“There is a necessary level of trust between employees and their employer that is required of successful businesses,” said Doug Karpp, Crime & Fidelity Product Head at Hiscox. “When there is a breach in that trust because an employee or executive steals, it can have a significant impact on the entire organization both financially and emotionally. Business owners and executives need to make the shift from blind trust to intelligent trust to ensure they are able to spot and prevent employee theft.”


 

Do Shoplifters have Rights?

Shoplifting and shoplifters have been a constant reliable problem the retail industry has had for many years.  The billions of dollars lost due to shoplifting is not a laughing matter.  The millions of dollars the retail industry suffers daily due to shoplifting, cripples local economies and leaves them unable to fund social programs that benefit those communities.  The tax loss from stolen merchandise affects those communities as well.

It is very hard to empathize with a shoplifter. Shoplifting is a crime after all but, we must remember that shoplifters have rights and whether security personnel likes it or not they must follow the law.  The procedures a security employee must take when apprehending a shoplifter are very clear.  Law enforcement personnel must follow procedures as well. Shoplifters have rights, and as a security employee you must follow them.

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


LP Interrogation Techniques Can Work as Negotiation Tactics

Negotiation tactics are synonymous with terms ranging from compromise and mediation to haggle and interrogation. It is not difficult to argue the fact that interrogations represent the hardest form of negotiating. When people enter into negotiations or mediations, they understand they may need to sacrifice some of their interests in order to reach a mutual agreement because both parties, at some level, have shared interests.

On the contrary, when subjects enter into loss prevention interrogation, they have no intentions of sacrificing any of their interests. Interrogation subjects are typically motivated to stake themselves to a position of innocence and to vehemently defend that position. Skilled interrogators overcome these obstacles by creating shared interests, reducing their subject’s resistance, and creating perceived benefits for confessing.

Many corporate executives view negotiating tactics and skills as both critical to their success and professional development.


Court rules company extorts money from accused shoplifters

 – A State Superior Court judge has ruled that a “corrective education” scheme for accused shoplifters is considered “extortion.”

San Francisco City Attorney Dennis Herrera filed the lawsuit against Corrective Education Company, which partners with retailers like Walmart, Bloomingdale’s, Burlington Coat Factory, Abercrombie & Fitch, Ralph’s grocery chain and Kroger’s.

Suspected shoplifters at those retailers don’t get handcuffed by police, instead, Herrera says they answer to a private business called CEC or Corrective Education Company.

“They basically would intimidate and get someone they suspected of being a shoplifter and say uh, unless you sign this form and and pay us money, we’re gonna report you to the police,” said Herrera.

The problem with that, Herrera says… it’s illegal.

“The law is clear. This is a textbook case of extortion and false imprisonment,” said Herrera who filed the lawsuit back in November of 2015.

This week, California’s State Superior court agreed.


Burlington Coat Factory Security Guard Arrested After Shooting

A security guard who shot a man Tuesday during a confrontation over an alleged shoplifting incident in San Francisco has been arrested, police said today.

The shooting occurred shortly after 2:30pm in the area of Fifth and Howard streets at a Burlington Coat Factory store where the guard, a 42-year-old man, confronted a suspected shoplifter, according to Officer Robert Rueca.

A struggle ensued that moved outside of the store, and the guard shot the 33-year-old man in the leg, Rueca said.

The victim was taken to a hospital with injuries that are not considered life-threatening.

The guard, whose identity has not yet been released, was arrested on suspicion of assault with a firearm and shooting at an inhabited dwelling.


 

Can You Hear Me Now? Active Listening is Important To Great Customer Service

How often does it happen? You are in front of your television watching your favorite college football team playing a game and your spouse starts talking to you about their day or what you need from the grocery store. Then suddenly the conversation takes a nasty turn and you are asked for input about the conversation you weren’t really engaged in. The textbook reply, “Yes Dear” or “Sounds good Honey” are the first line of defense but your spouse is suspicious of your response and asks, “What did I say?”  Oops, you’re caught, you weren’t listening and you really have no idea what was said. The same thing can happen in retail but with a much different outcome and one that can cost you money. With your spouse you may be in the doghouse and it can be uncomfortable for a bit but usually things have a way of working out in the end. For a retailer,  it may end up with an  exasperated customer who won’t shop at your store any more.

Actively listening is critical for ALL retail associates. It requires paying attention to what your customer is saying and sometimes keeping an ear out for what is not being said. It is a skill that often has to be taught because we do not always give our full attention to what others say to us as I gave in my example of above. How does one really actively listen? By asking clarifying questions and repeating back what the customer has said to you. Here are some examples:

  • A customer is returning a shirt. A simple situation right? Do the refund and give the customer their money back and everything should be good. Not necessarily. What was the reason for the return? Was the merchandise defective? Did it not fit the way the customer thought it would? Did someone fail to give them proper assistance when they were looking for the shirt in the first place? By asking the right questions you may turn a bad experience into better one. If the merchandise was defective, what was the defect? Is it possible to prevent a bad experience for others by pulling that shirt brand and style from the floor and requesting a credit from the vendor? What appears to be a simple problem may have underlying issues that you would not know if you aren’t listening and asking customers questions about their returns.  Doing so let’s the customer know you do care about them.
  • Perhaps you are selling jewelry to a customer. Showing your shopper merchandise is fine but learning about the customer and what they need the jewelry for can build an invaluable rapport with your clients. Is the jewelry for a special occasion? What style and color of outfit is being worn? How about inquiring if the client is allergic to any metals? You may need to look for hypoallergenic jewelry. It is possible by asking the right questions you might be able to accessorize the sale or better yet sell the entire outfit.

A key part of active listening is the inquiry process and asking the probing questions that lead to a clear picture of what a patron wants.

In addition to the probing questions another essential part of active listening is repeating what the customer has said to you. Sometimes when we are listening to someone we hear one thing but what the customer meant was something totally different. Here is a good example from a social media post I saw the other day:

  • I want to eat Grandma
  • I want to eat, Grandma

Both have the same words but two TOTALLY different meanings. When we repeat back what we have heard in the form of a question we ensure we truly understand what our customer is asking for. We can ask our customer, “So, if I understand you correctly you want to eat your grandmother, would you like that with or without ketchup?” Our customer can then make it clear they do not want to eat grandma at all, that wouldn’t be very nice. The patron can rephrase the question and give more details on what they want. Giving our full attention helps us give our clients exactly what they want and need as we make recommendations based on what they have told us.

Focus on customer service by listening to your customers and make them the center of your attention. They will return the favor by coming back to shop time after time and spreading the word to their friends.    


Get on the fast track for better profits, drive for improved shortage results

We’ve all been there, we are on our way to work and the next thing you know you come to a standstill. Cars backed up as far as you can see and no one is going anywhere. The clock is ticking away and you begin to worry knowing you are going to be late getting to the office. You look for a side street to try to get out of the mess then, someone with a little bit of guts and a four-wheel drive truck pulls onto the shoulder of the road and speeds by everyone to get to their destination. Everyone gets to where they are going but some people are determined not to let obstacles get in their way and they take the fast track to get there. They went the same route they just overcame the obstacles that would get in their way.

Retail can be like that too. A new store may start off doing pretty well and may even see growth the first few years. Over time the store does nothing new, profits stagnate or start to decline a little but it is just blamed on a slowdown in the economy.

The media and industry trade journals attribute the decline in sales in brick and mortar stores to online competition and the ease of shopping at home. I liken this to getting stuck in traffic and not being able to see more than a hundred yards ahead of where you are. You guess there is an accident or you assume there is a traffic light out and it is certainly not your fault you are going to be late for work.  Does that HAVE to keep you from getting through to your destination? I argue that it does not. The innovator takes a risk, gets on the shoulder of the road and blazes on by everyone else in the traffic jam. Is there risk? Yes, and notice I did not say the innovator plows through all the other cars leaving mass destruction in his wake. The risk is to the driver and his vehicle because he could run over an unseen hazard in the dirt or run into a ditch. The other vehicles are safe as they idle and slowly start to run out of gas. The risk taker measures the risk and determines that the payoff is worth the risk he/she is taking.

So how does all of this relate to shortage and profitability? Some store owners have chosen to operate their businesses without the use of any type of retail anti-theft devices. The store may conduct inventory and losses show up but the owner decides that the losses are related to operational issues rather than theft or fraud. Another inventory cycles and shrink goes up a bit but there is little thought given to the Impact of shoplifting. Over the years the shrink gradually creeps up just a little at a time and sales remain basically where they have been. That shortage is eating into the profit line of that retailer but no one takes notice. Eventually theft impacts the store to the point where it is too late to regain control and the owner is forced out of business. He’s just sitting in the backed up lane of traffic waiting to run out of gas and get pushed off to the side of the road. Had proactive steps been taken the problem could have been avoided. Had the owner chosen to install an electronic article surveillance towers at the doors and use tags on merchandise theft would have been prevented before things spun out of control.

Improving shortage means improved profits for store owners. The use of retail anti-theft devices and looking for fresh, new ideas to bring in additional customers can be the combination that keeps a store from falling by the wayside. You have the green light to get in the fast lane and pass up your competition.


     

     

Employee Retention Is Made Easier When You Conduct Speedy, Accurate Background Checks

Turnover for many businesses can be a real headache. You take the time to post job ads, review job applications, set up interviews and then conduct the interviews. Your new hire starts and within a couple of weeks they quit. It happens far too many times and it is a pain. Why did the person quit? Did they have a propensity for job hopping already and you missed it on the job application? Did they start stealing from you and got enough money or merchandise and quit before you caught on to their schemes? Perhaps it was a young employee on their first job and they wanted more weekends and night shifts off so they could “hang out” with their friends. All of these are reasons for high turnover in retail stores especially. Lose too many people at once and it can cripple your business, stretch the staff you currently have and it may potentially lead to more employees quitting.

On the other end of the spectrum there are the businesses that are very careful, almost to the extreme. They go through the same hiring procedures, posting the ad, contacting applicants and conducting interviews but they add an additional step. They conduct a background check before making a job offer. Sounds good right? Making sure you aren’t hiring someone who will steal from you or threaten others in the workplace. Here’s the catch, hire the wrong background check company and you may be losing great employees because pre-employment screening is taking too long to conduct. Thoroughly vetting a prospective new hire is fine, but if that candidate has to wait too long for results they may decide to go somewhere else.

I know of one retailer that conducts pre-employment screenings but in some of their stores they have a problem with retention rates. In one instance the management team was reduced to the store manager and an assistant. The assistant left the company and only the manager and a skeleton crew were running the building. The store manager was trying to get new managers on board as soon as he could. He was working 7 days a week and personnel from other stores were going up and helping to fill in as managers on duty so the store manager could get a break.

Reportedly the store manager had a department manager candidate to hire and attempted to get the background check expedited to give him some help. The request was denied and it took several additional weeks for the positions to begin to be filled. I heard through a third party that the manager was close to quitting due to the staffing problems at this store and the failure to get critical jobs filled. Several weeks later the person the manager wanted to fast track was cleared and hired for the store. While this was an extreme situation, consider how close the manager came to leaving the company.

What about the chance the district level manager or higher took with the candidate. The position was not an extremely high paying job and there are plenty of other opportunities with similar or even better pay. It would have been easy for the candidate to just find another place to work with the length of time the background check was taking.

Not having a pre-employment screening on candidates is foolish. You are gambling with your business and profitability if you bring on the wrong person for your staff. Hire the wrong Background Check Company that doesn’t recognize the value of timeliness when conducting your checks for you and you risk the loss of potentially very strong candidates. It is important to find a company that understands the challenges retail owners and managers face every day. From taking steps to grow profits, combating theft and fraud, to retaining the best people to work in their stores it can be overwhelming. Give Loss Prevention Systems a call to discuss background check options with people who understand the challenges of the retail industry. Proper hiring and operating profitable stores go hand in hand.