Retail Shrinkage and More News

July 22, 2014 by Leave a Comment

theft (13)Recent research about loss prevention states that the industry loses about $57 billion yearly. The perpetrators are more brazen and the consequences more expensive. Surveillance and private surveillance personnel are not enough to stop shrinkage in the retail industry. The steps that the store employee can follow depend on the store and the state they are situated. Private Citizens are generally not allowed to restrain people against their will and by doing so opens the doors for civil or criminal law suits. For more news about shoplifting follow the links below.

Survey: Retail shrink translates into $57 billion loss; cash theft jumps 20%

New York — Shrinkage levels average 1.27% of sales, which translates to a $57 billion loss to the industry, according to the U.S. Retail Fraud Survey, which is based on research into the systems and strategies used by 100 leading North American retailers.

The biggest area of store loss remains employee theft (38% of shrink), up 3% from last year, according to the study, published by U.K. based Retail Knowledge and sponsored by Volumatic and Kount. It is followed by cash theft (24%), up 20% from last year, administration and book keeping errors (21%), down 9%, and shoplifting (11%), down 15%.

The biggest area of online loss is fraudulent use of credit cards (59% of shrink).

In other survey highlights:

• Return fraud is costing retailers an average of 0.25% of sales this year, compared with an average of 0.4% last year.

• With regards to loss prevention departments, on average, each member of the fraud prevention team is responsible for $103 million of sales.

Retailers apprehend shoplifters and dishonest employees in record numbers

While the increased brazenness and skills of both shoplifters and unscrupulous employees continue to plague retailers across the United States, the industry’s most respected loss prevention researchers offer some good news in their just released survey. According to numbers highlighted in the 26th Annual Retail Theft Survey conducted by Jack L. Hayes International, the leading loss prevention and inventory shrinkage control consulting firm, both apprehensions and money recovered from retail theft increased again in 2013.

The survey says almost 1.2 million shoplifters and dishonest employees were apprehended in 2013 by just 23 large retailers, who recovered over $199 million from thieves. The figures show that shoplifting apprehensions were up 2.5 percent and recovery dollars increased by 4.5 percent. When it came to cracking down on internal theft, the survey revealed that apprehensions for dishonest employees rose 6.5 percent and recovery dollars rose 2.5 percent. According to Mark R. Doyle, President of Jack L. Hayes International, these figures display a positive trend of apprehension and recovery that has been seen for three consecutive years.

A look back: Four lessons from my first LP conference

I was named NRF’s Vice President of Loss Prevention a little more than a month ago. It was perfect timing for me to jump in and do my best to meet thousands of my peers at NRF’s annual Loss Prevention Conference. Here are my top takeaways after experiencing the event for the first time behind the scenes.

  • There’s a live stream audience for retail loss prevention. Gus Downing, producer of the LP News Network (LPNN), led this historic first-ever live broadcast from any loss prevention conference. Thousands of viewers watched LPNN’s eight hours of educational content, news and even an interview with me and Vicki Cantrell. Thanks to Downing and his team for their diligent coverage of the retail loss prevention issues that matter most to our community – at the event and throughout the year. There is added value as the stream is currently being broadcast on the D&D Daily as the gift that keeps on giving to the LP community.
  • We’re in the age of “Brand and Business Protection.” The protection of products, our brands, employees and customers: No matter your focus, Cantrell was direct in her opening remarks last month. “We must prepare, plan, preserve, prevent and – most importantly – protect those we are entrusted to serve. By protecting our organizations, we keep them strong, and it is the strong who survive and thrive.” The transformation of NRF’s Loss Prevention Conference to NRF PROTECT is a commitment from NRF to prepare this community for the growing challenges, threats and responsibilities for retail loss prevention professionals. Keep your eyes peeled for more to come!
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Why Your Employees Need to Know The Shoplifting Policies in your Store

July 16, 2014 by Leave a Comment

law-3A shoplifting case in any state can run from an infraction or a misdemeanor to a felony charge. Many communities across the United States are urging government officials to make a shoplifting case charge into something serious to deterred shoplifters from entering their stores and getting away with stolen merchandise.

Policies across the retail industry vary tremendously. Regardless of the policies you want your employees to adhere to, those policies have to be understood and follow through regardless of the situation. Law suits against retail stores are prevalent and costly, educating your security employees about the policies and laws in the state and your store can prevent expenses your business can do without.

Follow more stories about shoplifting by following the links below.

Target security officer fired after reporting shoplifting

Dallas Northington spent nearly eight years working for Target in loss prevention, roaming the stores and scanning the surveillance cameras. In an episode at the Leesburg Target store in May that he said was typical, a man was allegedly captured twice on video shoplifting, and Northington responded as he said he always did: He called the Leesburg police, made a report and provided them the videos of the two incidents.

But the man in the video may have been a Fairfax County sheriff’s deputy, Northington said he soon learned. And within days, two things happened: The deputy retired from the sheriff’s office and Target fired Northington, 29, a married father of two with a third child on the way.

Northington said Target officials told him that he had violated procedure by not filling out the proper paperwork before contacting the police, though he said his office had operated the same way for years. He said he also was told that he had been insubordinate for not seeking approval before calling police, though he said the standard practice was for him to act as needed.

Va. sheriff’s employee to be charged in shoplifting

WASHINGTON (AP) – Leesburg police say a Fairfax County Sheriff’s Office employee will be charged with shoplifting in a case that drew attention after the Target security guard who reported the alleged crime was fired.

The sheriff’s office employee has not been identified, and formal charges have yet to be filed.

Leesburg police say they identified a suspect a few days after the theft in late May and were awaiting word from Target on whether to proceed with charges. Police say they got that word from Target on Monday.

Police say the decision to fire the security guard was a corporate decision made by Target. Dallas Northington told The Washington Post that he was fired after Target told him he violated procedure by filling out paperwork before calling police.

Man wanted for shoplifting at Suffolk Walmart

Suffolk, Va. – Suffolk police are seeking the public’s assistance in identifying a man involved in a shoplifting incident at Walmart.

It happened on July 12 shortly after midnight at the Walmart located in the 6200 block of College Drive.

The suspect is described as a black male in his late teens or early 20’s wearing a dark tank top, camouflage shorts, a dark do-rag, flip flops and dark socks.

Surveillance cameras captured the suspect pulling a plastic Walmart bag from his pocket and placing several items in the bag and then proceeding past the register.

A loss prevention officer saw the suspect driving off in a tan colored Ford SUV.

Anyone with information is asked to contact Crime Line at 1-888-Lock-U-Up.

When calling Crime Line, callers do not have to give their names or appear in court.

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Are You Letting Your Employees Steal From You?

July 14, 2014 by Leave a Comment

theft (2)Employee theft is one of the most difficult issues a business owner faces. An employee is 15 times more likely than a non-employee to steal from an employer and they are responsible for approximately 44% of business’s theft losses (National Federation of Independent Business). And yet it’s one of the problems owners and managers are least likely to address.

However, the denial method of management doesn’t work causing nearly a 1/3 of businesses to fail due to employee fraud (U.S. Department of Commerce).  There are many reasons why owners are resistant to addressing the problem of employee theft. Three of these reasons are centered in the owner’s personal beliefs.

I’m a good guy – Some managers simply refuse to consider the idea that their employees would steal from them. They believe “I’m a good guy, so my people will never steal from me”. They misinterpret the issue of employee theft as a personal issue, a referendum on their character, rather than the personnel, business and legal issue that it is.

It’s not that much – Many loss prevention specialists, accountants and business analysts are aware of the open “secret” in many small businesses. Some owners and managers know and don’t care that their employees are stealing. They think, but don’t actually know, the loss is a small amount and for a variety of poorly thought out reasons believe it’s “not worth dealing with”.

There’s nothing I can do about it – These owners or managers don’t want the responsibilities of their jobs. They develop beliefs which permit them, in their minds, to not be held accountable for their managerial duties. For example, they have convinced themselves thatit’s impossible to find good quality workers, so employee theft happens all the time and everyone does it. In this rationalization, there’s nothing the manager can do, so he’s justified in doing nothing.

One of the most important components to any comprehensive loss prevention program is management’s commitment to and involvement in it. Many times business owners can be the biggest obstacle to a successful program due to their erroneous personal beliefs. Regrettably, many have found that ignoring the vital issue of employee theft leads to drastic consequences.

Nicole Abbott – writer, educator and psycho-therapist

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Shoplifting Videos from Around the U.S

July 8, 2014 by Leave a Comment

theft (12)The United States Retailers lose billion of dollar every year due to shoplifting. The National Association for shoplifting prevention has programs dedicated to helping those with these problems and educating and reaching out to the youth of this country. Stealing affects every one of us and the repercussions of shoplifting affect those closest to the shoplifter. Here are some articles and videos for you about shoplifting around the country. Follow the links below.

Texas woman sentenced for million dollar shoplifting ring

SAN ANTONIO (Reuters) – A Texas woman has been sentenced to 10 years in prison for taking part in an international shoplifting ring where members used oversized bags to steal millions of dollars worth of goods from high-end stores, prosecutors said on Tuesday.
Eva Salazar, 49, pleaded guilty on Monday to second degree theft for stealing merchandise from stores including Victoria’s Secret, Abercrombie & Fitch, and Coach, said Trey Banack, the chief of the White Collar Crimes Division of the Bexar County District Attorney’s office in San Antonio.

Salazar and three other women would enter shopping malls with bags that could hold deceptively large amounts and then “clear entire tables and shelves of merchandise,” Banack said.
“They then delivered the merchandise to a fifth woman, who would sell the items through her online store,” Banack said.

The ring hit malls in Austin, Houston and San Antonio, and also struck internationally, with suspected thefts in countries including Canada and Australia, he said.

Children left home alone while couple goes shoplifting

LOUISVILLE, KY (WAVE) – Louisville Metro Police have charged a couple with leaving their children home alone while they went to a store to shoplift.

Around 7:20 p.m. July 7, police said Crystal A. HDC) 33, of Louisville, walked out of the Preston Highway Meijer with merchandise she had not paid for. The arrest report says Herthel had a receipt in her hand as if she had paid for the items, valued at $556.57, and placed them in the truck of her car.

During questioning, Herthel admitted to stealing the merchandise and said that her boyfriend, Kurt Sheets, 35, helped her select the items.

According to police, Sheets and Herthel walked into and out of the store separately. Officers also said each gave conflicting statements about why they were at the store.

Police also learned the pair had left their children, ages 10, 4 and four months, at home while they went out to commit the theft.

Both Herthel and Sheets were arrested for shoplifting. According to officers, the two had a total of $34 in cash on them.

Police said Herthel had previously been arrested for shoplifting from an Indiana Meijer store.

Video appears to capture weekend shoplifting assault outside Madison Square Mall

HUNTSVILLE, Alabama — A video that surfaced online this weekend appears to depict the assault of a Belk employee as he tried to stop a shoplifter outside Madison Square Mall.

The incident occurred Saturday evening, when a loss prevention officer was trying to stop a woman who had stolen merchandise from the Belk department store. The Huntsville Police Department said two men came to the woman’s aid and assaulted the employee, who was reportedly not seriously injured.

The suspects fled with the merchandise and no arrests have been made, police have said.

The video surfaced Sunday, when a woman named Whitney Woolen posted it on Facebook. As of 1:50 p.m. today, the video has been shared nearly 500 times from Woolen’s page.

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Shoplifting News This Week

July 3, 2014 by Leave a Comment

theft (8)These are some of shoplifting news happening this week around our country. Click on the links to read the whole story.

Trio of shoplifting suspects nabbed by Bossier Police after wild ride in Walmart parking lot

It wasn’t the getaway some shoplifting suspects were hoping for Monday in Bossier City.  Officers responded to Walmart in the 2500 block of Airline Drive in reference to three women who were seen shoplifting in the store. The suspects ran out of the store after they were confronted by store security.

While one of the suspects was attempting to get away in a car, she backed over a woman’s foot. The woman’s adult daughter confronted the driver and as the suspect attempted to drive off, the daughter jumped on the hood of the car. The suspect then sped through the parking lot with the daughter on the hood.

As police arrived on the scene the suspect slammed on the brakes and the daughter was thrown off the hood and landed on the pavement. The daughter was taken to University Health in Shreveport by BCFD with a possible broken leg. The mother who got her foot run over was checked out at the scene by BCFD and did not need to go to a hospital.

Shoplifting foiled, four arrested

Four people were jailed Saturday after a failed shoplifting attempt.

Jason R. Walker, 29, of 1612 Roanoke Ave. in Uhrichsville, and Casey L. Myers, 33, of 413 12th St. in New Philadelphia, left Sears at Belden Village Mall around 1:15 p.m. without paying for a universal charger and pair of women’s shoes, said Stark County Jail records.

Carol D. Henry, 34, who Stark County Jail records say is homeless, and Stacey J. Jones, 28, of 131 Third Drive NW in New Philadelphia, arrived with Walker and Myers and were waiting in the parking lot. Jackson Township officers were given permission to search the car and found items used to make methamphetamine in the trunk.

All four were charged with assembly or possession of chemicals for the manufacture of drugs, a third-degree felony. Walker also was charged with petty theft, and Myers was charged with complicity.

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Crime and Education

July 1, 2014 by Leave a Comment

law-3It is unclear according to researches whether the United States can reduce the crime rates by increasing education. The clear notion about crime- and in this case shoplifting crime- is that the United States alone loses billions a dollar every year to this very expensive social issue and a solution is still to be seen. To read more about this follow this link.

To read more about other shoplifting issues follow the links below.

Are All Criminals Stupid?

Sane people are thrilled that those dimwitted criminals are in prison so they can’t add to the gene pool even more.

Are all criminals stupid or are all stupid people criminals? Evidently it is true that one has to be a little stupid to choose a life of crime. The following evidence seems to substantiate that fact.

James Elliot took his .38 caliber revolver with him to carry out a robbery in Long Beach, California, and the gun failed to fire leaving his intended victim wild-eyed in fear. James then did something that will guarantee his entrance into the Stupid Criminal Hall of Fame. He looked down the barrel and pulled the trigger again! This time it worked. Jimmy is no longer with us but then he never was!

Recently a man walked into a gun shop and tried to rob it with a baseball ball bat! The owner and customer used their guns to convince him that he was deficient in his planning. Just as an intelligent person does not take a knife to a gun fight, you don’t take a ball bat to rob a gun store.

Sears Holdings Support Communities, Fight Shoplifting with Restorative Justice Solutions  

Petty Theft Loss Prevention Program Success Leads to Expanded Adoption Nationwide.

SALT LAKE CITY – June 18, 2014 – Turning Point Justice (TPJ), the trusted provider of collaborative loss prevention solutions for retailers, and its partner the National Association for Shoplifting Prevention (NASP), today announced that Sears Holdings Corp. is expanding TPJ loss prevention solutions at select Sears and Kmart locations nationwide. The Court Alternative Program (CAP) is an innovative restorative justice solution based upon the principle that cooperation between retailers, law enforcement and the justice system saves time and money for both retailers and communities while improving offender accountability and reducing recidivism.

“Sears Holdings continues to support progressive loss prevention practices, such as TPJ’s innovative restorative justice solutions, that further elevate our leadership position in this industry and support our communities’ law enforcement efforts,” said Scott Glenn, chief security officer, Sears Holdings. “In pilot testing, we experienced a more than 50 percent reduction in the need for police and prosecutor support for shoplifting incidents at stores, which helps local law enforcement focus their resources on more serious crimes than petty shoplifting.”

CAP enables loss prevention teams to quickly identify qualifying offenders who voluntarily admit to the theft and desire to resolve the incident without the need for an immediate law enforcement response. Offenders who choose to participate in CAP pay restitution to retailers and complete proven National Association for Shoplifting Prevention (NASP) shoplifting education programs that are used by justice systems across the United States. CAP is available at no cost to retailers.

Shoplifting Prevention For Retail Stores

If you’re the owner of a local retail store, there are many things that you can do to maximize profits. One thing that every retail store faces is loss due to theft, and some business owners just write theft off as something you can’t prevent. While you certainly can’t prevent theft with absolute certainty, there are certain things that you can do minimize it and prevent major losses. One major thing that you can do to combat theft is to invest in security cameras that you can place around your store. There are many ways that cameras can help you avoid theft as much as possible.

First, cameras act as a major deterrent to those who might otherwise try to shoplift in your store. The presence of cameras can be intimidating and make it discouraging for potential shoplifters. It’s one thing for an otherwise confident person to walk into a store he or she knows isn’t monitored by cameras, but it’s an entirely different thing to know that every move made will be recorded. This forces shoplifters to be extra careful, which many of them likely won’t really consider to be worth it.

Although cameras can reduce theft, they can’t prevent it entirely. In cases where theft does take place, having high performance cameras in place can help you ensure the responsible parties are brought to justice. Having high-resolution images to sort through as you’re attempting to find culprits in cases of theft can make it much easier to do so.

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Customer Service Shoplifters To Death

July 1, 2014 by Leave a Comment

theft (12)Yes, it’s true, we sell Checkpoint Systems and Alpha High Theft Solutions. However, equipment is not the total solution to the shoplifting problem. The total solution is a package deal. You have to combine equipment with effective customer service techniques. The retailer who forgets this, stands to spend a lot of money and not fully solve their shoplifting problem. That is one of the reasons we include extensive anti-shoplifting training for our customers (OK that was a shameless plug).

How can you use customer service to prevent shoplifting? Shoplifters must have some privacy to steal. This applies to all shoplifters’ – impulse, amateur and professionals.  Therefore shoplifters tend to shun your attempts to service them. So become even more resolute in your customer service. It is a no loose scenario.  Good customers love customer service. It is one of the reasons they shop with you over a big box store where customer service is someone who knows absolutely nothing about the products. You and your staff do. Lavish the attention on them.

But, and there always seems to be an exception, many shoplifters are just as determined.  So try throwing in a few other customer service techniques.  If you see or suspect that a “customer” has concealed say a blouse, ask them if they would like to see a scarf to go with the blouse. Think about what happens in their mind when you ask this question. A legitimate customer that actually put the blouse back on the rack (and you did not see that) is not thinking about theft. They are experiencing retail therapy.  Their mind will think, “oh I was, am looking at blouses and this retailer is helping me….very cool!”

The shoplifter on the other hand experiences something else completely. They interpret that as you saw them conceal the blouse. In many cases they will simply pull it back out and hand it over. Personally I would try to then insist that they buy it as it does match their eyes, hair color, complexion or even the new shinny bracelets the nice Police Office is happy to supply. I mean, if they wanted it that bad anyway and the fact that we retailers are all those evil money grubbing capitalists then why not get a sale out of it. However, at this point I would think cash is the only payment option I would offer.

The fact is you can use this technique regardless of your type of retail goods. So if this works soooo well Mr. Bregar then why do I need you and that Checkpoint and Alpha stuff? The equipment is there for when your staff to customer ratio is way off during those busy times when you cannot be everywhere. The shoplifters know this. The Checkpoint System, Checkpoint labels and tags and Alpha products take up the slack. They are on duty 24/7. No sick days, time off, vacation, looking the other way…

Would you like a list of customer service anti-shoplifting techniques?  Contact me, Bill Bregar at 1 770 426 0547 and I will be happy to send you one, free of charge, no strings attached. Heck, even the call is toll free so no more excuses or whining. Like an old (sorry Fritz) but very wise boss once told me, just “do it”.

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Omni Channel Retailing

July 1, 2014 by Leave a Comment

theft (11)Omni Channel Retailing is the current long-term direction that retailers are going forth with. It basically is the process of integrating all aspects of a retailer into one accessible unit for customers to shop. This is the current way to combine a brick and mortar location with online sales, social media, distribution, and mobile phone apps. By cohesively allowing customers to shop any location, by any means available, sales are maximized exponentially.

Simply put, a customer can purchase merchandise online, or from their phone by searching your company website. The products available come from your distribution channels, and in stock inventory within any of your stores. A customer has the ability to see what your on hand inventory is, make the appropriate purchase, and then decide how they will get the product. The options are usually pick up in store, deliver to home, or deliver (from the distribution center) to a store of their choice.

Omni Channel Retailing is a viable option, not just for the larger companies with hundreds of selling locations. It is actually a great way for smaller businesses to compete with these big box stores as customers have better access to a wider range of your merchandise, when and where the customer needs it.

Having worked with larger companies just beginning these selling processes, I was able to experience their growing pains first hand. The hardest obstacle to overcome was ensuring the proper on hand inventory, so when a customer placed the order we could quickly fulfill it.

I saw too many unhappy customers place an in store pick up order, show up thirty minutes later, only to find out we didn’t actually have their product in stock. Not only were they put out by the inconvenience of needlessly driving to the store, but also they still had to figure out how to get the merchandise they wanted to buy.

As we progressed with the process, we started taking a better approach to our on hand accuracies. As a result, our sales increased, as did our customer satisfaction. Through Omni Channel Retailing, we were able to reach a whole new customer base and increase our sales in ways we never dreamed we could.

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Same Time Next Week

July 1, 2014 by Leave a Comment

theft (5)Shoplifters are surprisingly creatures of habit. My initial assessment was that a shoplifter, who is desperately trying not to get caught, would work hard to vary the times and days that they would come into a store to steal. I thought they would want to take a surprise approach to their thieving ways. I was actually quite wrong in my assessment.

The truth is most shoplifters want to find a comfort zone to steal in. They are looking for a tried and true way to get in and out of a store undetected. That is why if they steal something and get away with it on the first try, they will continue to use those same methods and manners in their subsequent thefts.

Luckily for us, when a shoplifter develops a pattern, it makes it easier for us to catch them and put a stop to the shrink losses they are creating. By identifying the pattern they created, we can be one step ahead of them and can be waiting to catch them, just like this shoplifter.

I was working for a home improvement store. We started loosing large rolls of electrical wire worth several thousands of dollars. Since these were large, heavy items that were not frequently shuffled around, we set up a camera to see if we could find out where they were going. After a few weeks of watching, we saw that every Friday around noon a man came in, loaded a roll onto a cart and then switched the price tag out for a less expensive one. The cashier charged him for the roll of wire based on this lower priced tag.

Since we found his pattern, we waited until the following Friday. Sure enough he was just like clockwork. Noon came and so did he to walk off with another one of our rolls. This time, we were there to intercept the transaction and have him arrested.

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A Victimless Crime?

July 1, 2014 by Leave a Comment

theft (1)Shoplifting has always been viewed as a victimless crime. It is one of the reasons why shoplifters justify what they are doing. They view their theft as a crime against a faceless company where no one specifically gets hurt. The majority of these shoplifters would never steal from a friend, or commit another kind of home invasion or burglary. That would be violating a specific person, and much harder to morally justify.

When you work retail, you understand just how far from the truth it really is. Shoplifting is not a victimless crime. Its victims are actually frequent and plentiful, starting with the store owners and employees. These are the ones who have to bear the majority of the effects shoplifting has.

To start with, small business owners often do not have the inventory turns needed to effectively diminish the financial impact of stolen merchandise. Unlike companies with thousands of locations that collectively absorb the financial impact of higher cost of goods and lost sales, small businesses rely on their slim profits from maximizing every dollar spent in their stores.

Employees are the next to feel the pains of shoplifting. Hours can be cut, reducing their personal paychecks. Store maintenance, heating and cooling can also be reduced as finances are moved back into inventory replenishment. The overall morale of a store can be reduced, making for an unpleasant place to work.

Customers are the last to feel the brunt of shoplifting, but they still feel it. They are the ones whose time and patience are wasted looking for items the store should have, but doesn’t. They frequently unload their displeasure onto the employees who already have a reduced morale. Customers start taking their sales elsewhere; shopping at stores they can rely on.

Even though a shoplifting crime does not target a specific person, it is by far not a victimless crime.

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