To fix a problem, you first need to know what is wrong with it. Shoplifting and employee theft are two of the main causes of billions of dollars lost in the retail industry every year. Employers and management personnel do not know how to fix those problems, and sometimes are not aware there is a problem till much later. If employees are caught stealing, the problems then are the financial costs associated with prosecuting such individuals. Is firing them enough punishment? Should the employer pay thousands of dollars in legal fees to bring such individuals to court? There are many issues associated with shoplifting, do you know what to do about them?
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Managing Retail Shrink Begins with Problem Identification
The retail shrink action plan should begin with problem identification.
One question I have been asked frequently is, “How did you know how to battle retail shrink in the grocery business, especially considering your background is predominantly in discount retail?” My response to that question is almost always the same, which is: “I follow the loss prevention road map.” Often I get blank stares, but after explaining, most understand and realize they have probably been following their own road map for years without realizing it.
I have always described the road map as a six-step process; one that takes years to perfect, but when executed properly can yield amazing results in not only retail shrinkage reduction, but any expense a company is attempting to minimize.
The process includes the following six steps:
• Step 1—Problem identification
• Step 2—Program development
• Step 3—Program execution, or what I like to call countermeasures
• Step 4—Comprehensive awareness programs
• Step 5—Auditing for compliance
• Step 6—Measurement


Is your burglar alarm giving you all it’s got? Technology keeps updating but there is one area you may not be thinking about getting more from your dollar: your burglar alarm system.
It’s not too many industries where I can share two separate stories of a crook falling four stories after trying to steal. This is why I chose Loss Prevention as my career. It’s not the thrill of the chase, or the feeling I get when I close a big case; no, it’s the funny stories I get to tell!
It was 4:30am on a Tuesday morning. My company cell phone pierced through the quiet halls of my house. At first, I didn’t get out of bed; perhaps it was a wrong number. Silence. As I doze back off, I hear the familiar tone once again. Who could be calling me and for what reason at this hour? I let it ring. I hear the chirp of the voicemail. Before I can muster the energy to get out of bed, I hear my personal phone ringing. This one is next to me on the night stand. Something is wrong, I immediately think to myself. When I reach for my phone in the middle of the dark room, eyes still blurry, I see the caller ID. It’s a sheriff’s deputy that I’m good friends with. My heart is in my throat as I answer. “You’re morning crew was just robbed at gunpoint. Get to the store now.”
Employee theft continues to rise. In some retail settings it’s surpassed customer theft. There are a variety of reasons for the increase. One of them is that many managers have a hard time believing that “My people would do such a thing”. And because they have a hard time believing it they don’t take steps to combat it.
EAS is great isn’t it? For the most part, if someone is stealing product “X,” you slap on a quick tag or label and you see a pretty substantial reduction in shrink (for the most part.… Live in the real world). As my LP career has progressed over the years, I’ve seen EAS change drastically. I’ve also seen what retailers apply EAS tags to change as well. Often times, I scratch my head in disbelief at the ideas that come out sometimes and others, I pull my hair out because we could have been more proactive with tag placement. I’ve also seen some fantastic ideas from my store teams on some not so standard tagging procedures.
Everyone I know loves a good “dumb criminal” story. In fact, I can’t go a day without someone (store managers, district managers, executives, family…) asking me to tell a crazy shoplifting story. I have a top 10 list that I usually gravitate towards, but after yesterday, I may have to change it to a top 11.