Quit Stalling About Employee Theft

Every day I see news articles about employee theft. That does not even cover a fraction of the employee theft occurring both know or unknown. The fact is that approximately 45% of a Retailer’s losses are due to employees stealing. We focus so heavily on shoplifting that many times a Retailer misses the boat completely. Do not misinterpret what I am saying, shoplifting is responsible for about 35 percent of a Retailer’s losses. Which is also huge.

However, employees have access to your cash, supplies, and merchandise. Employees are generally trusted until they show us that they are not. Which may be too late! Many Retailers I have discussed this with over the years tell me that they trust their employees and treat them well. Therefore they would not steal from them. Those are the folks that have the worst losses and the biggest shock when it does happen. As human beings, we do not want to believe that someone would steal from us. We also are quick to turn a blind eye to the evidence even when it hits us in the head. We simply do not want to believe it.  

Another factor is that many Retailers do not know, understand and are afraid to do something. Will we make a mistake? Would we accuse someone of something they did not do? What civil and criminal consequences do we face? And the list goes on. This is yet another stalling factor for not doing anything. 

Quit stalling about employee theft. You face every other retail problem head on why not this. Educate yourself. We can help you with this. Make sure you know the signals of employee theft. Yes, employees who steal, act differently than other employees. You simply need to know what to listen and watch for. Do you “audit” your operation? For example, an audit can be as simple as making sure the Point-Of-Sale balances every day and if it does not, find out why. I have seen many Owners and Managers that say if the drawer is short $5 or less, they do not look into it because “it is not worth my time”, REALLY??? THAT IS SO WRONG and dangerous!!!! First by having a policy like this you are telling everyone that stealing $4.99 and below is okay. $4.99 times 365 days a year is a loss of $1,821.35. Oh, and that kind of theft WILL lead to larger and more frequent employee theft. 

Over my career, I have investigated, interrogated and put in jail somewhere north of 2300 employees for theft. The vast majority of those employees that were stealing did it for the same reasons. Many still stole even those the boss was “good to them”. I have seen employees that had been loaned large amounts of money by their employer, employees that were being put through school by their employer steal with no regret except for being caught. 

We can train you to spot employee theft and what to do about it when you suspect and find it. It is not hard to do. We can show you how to “test” employees to see if they are stealing. We can help you build the confidence to be on the offense, not the defense.  Your good employees will not care or suffer. In fact, they will help you. You just need to know how to proceed. 

Would you knowingly buy a car that had major engine and transmission problems? Probably not. So why would you hire someone with a criminal record? Why would you not find out that they have problems with violence, theft, drugs and worse when it is so simple, fast and cost-effective to do so? We can help you with that also. We conduct pre-employment screening, drug testing and more, nationwide. Look at it this way, you interview, select, employ, train, invest in an employee just to find out the hard way that they are very familiar with employee theft? When a pre-employment screening costs $20 how can you afford not to. Drug testing is also very inexpensive. You can quickly, cheaply and easily have a pre-employment drug testing done on all of your employment candidates when you offer them the position. Again, we conduct pre-employment screening and drug testing nationwide. 

You control every other aspect of your business, why would you not take more control of employee theft? Contact us today or call toll free 1-866-914-2567. 

What can a Loss Prevention System do for you?

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

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

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

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

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

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

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

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

Post Holiday Retail Blues

 

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

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

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

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

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

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

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

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

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

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

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

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

Contact us today or call 1-866-914-2567 to find out more about our Sensormatic systems and getting your staff trained up to go on the offense. 

An Accurate, Successful Inventory Is Not Due To The Luck Of The Irish

How does Notre Dame’s football team manage to maintain a top program year in and year out? Is it the Luck of the Irish that does it? No, they field a competitive team by working hard and preparing for the upcoming season. As we enter March we think of spring and St. Patrick’s Day and the Luck of the Irish and lucky four-leaf clovers and all of these things. In retail, we also think about store inventory time and how the results will come out this year.

     If you are counting on the Luck of the Irish or just plain luck to get you through inventory and wind up with successful results you need to get a better plan. Obtaining inventory results that reflect a healthy, robust business starts well before the inventory date. While it may include the preparation time several weeks in advance of the actual day/night of inventory counting the real work begins when you start your shortage action plan.

     If this is the first inventory for your store you will not have a measurement or prior inventory as a baseline for what you will be up against. I would suggest that in your case you measure your store against the national shortage average OR you measure it against the national shortage average for your type of retail business. According to the National Retail Federation 2018 National Retail Security Survey, shoplifting accounted for 35.7% of losses while employee theft accounted for 33.2%. Loss Prevention Systems, Inc. personnel are well-versed in shortage and can be a helpful consultant to you in this area. For those who have inventoried previously you want to lower whatever the prior year shortage results were for your store. Obviously it would be fantastic if zero shortage could be counted on year in and year out but the fact of the matter is very few stores will come in at zero (I have seen overages but those always offset the next year due to poor counts or paperwork errors).

     So where does one start in their planning? First you have to look at your anti-theft strategies. With nearly 70% of the shortage attributable to theft you can take care of a big chunk of shortage by addressing this issue. Is your store using electronic article surveillance equipment to deter and prevent shoplifting and even employee theft? If you do not have an electronic article surveillance system in your first assignment is to get one. This includes the towers, tags, and even integrated cameras. Don’t use second-hand equipment or an off-brand system in your store. Using a name brand solution from Sensormatic is the best option and it is more affordable than you may think. Again, Loss Prevention Systems, Inc. can guide you into the best solution for your business no matter how big or small it may be.

     You then need to take a look at the other areas that impact shortage, operations, vendor shortage and a small portion which is undefined. Looking at each of these aspects can be time-consuming because there is so much that can impact each one. If you have managers working for you they should be looking at how shortage could be happening in their departments and present solutions to address them. That information then goes into a master shortage plan. If you are lucky you will have a team that knows where to look for shortage opportunities. If you don’t have that kind of luck or if you are the only manager for your store you are still lucky. Loss Prevention Systems, Inc. can work with you to conduct a risk assessment and identify vulnerabilities and devise plans.

     Finally, once your anti-theft system is up and running and your shortage action plans have been created you can spend the month prior to inventory prepping the store. There’s no magic to it, it is a detailed preparation to make sure every piece of merchandise is properly tagged and ready to be counted. Inspections of nooks, crannies, shelves, underneath base decks, on top of fixtures and in supply closets to locate items that have migrated where they should not have can add dollars back to your inventory.

     Four leaf clovers, lucky charms, wishful thinking nor luck of the Irish are going to get you a successful inventory. Theft prevention, careful planning and advice from people who have been in the Loss Prevention field WILL result in successful inventories. Follow this advice and find your own pot of gold at the end of the inventory rainbow.