Can Technology End Shoplifting?

Shoplifting prevention has for many years been done with the help of technology.  From CCTV cameras that offer the loss prevention team clear pictures of the perpetrator, to radio frequency tags (RF tags) that are placed on high value items in the store and set alarm systems off if carried outside without paying. Now, stores can use facial recognition technology to help alleviate some of the shoplifting burden the loss prevention team faces every single day.

But, regardless of the technology a store uses, it is imperative for the owner or management of the store to inform their employees of the policies and procedures the store has in place regarding shoplifting.  Death, lawsuits and bodily harm has occurred to countless of employees because they do not know, or do not adhere to the policies the store has in place regarding on how to approach a suspected shoplifter.  Safety is paramount to the well being of employees, customers and the suspected shoplifter.

To read more about other topics about shoplifting, follow the links below.


Why hasn’t security technology put an end to shoplifting?

As the UK crime rate falls, there is one crime that is on the rise. Recent figures show that shoplifting has consistently grown by an annual 6% against a wider backdrop of reduced crime. This statistic is surprising considering the vast amount of time, money and effort that goes into developing anti-shoplifting technology. So why isn’t it working?

How does anti-shoplifting technology work?

The vast majority of retail stores are equipped with several high tech security measures. CCTV cameras are the most common. According to the College of Policing, CCTV is more effective as a method of gaining evidence to catch and convict a criminal than as a deterrent.

Many security camera providers provide monitoring services to ensure footage is captured and analysed as efficiently as possible. However, surveillance systems require careful planning; Banham Group, security experts with more than 90 years’ industry experience, advise that CCTV installation must include guidance, particularly on data protection laws and system legalities.


Loss Prevention Software and Data Analysis

The latest loss prevention software technology will help LP pros aggregate and analyze data into actionable information.

Data analysis is all about answering questions. To properly develop the questions, you must first identify your enterprise’s opportunities to increase profitability. Second, you need to identify the specific data needed to answer these questions. Finally, you must determine the tools and loss prevention software resources you can use to turn that data into actionable information to resolve the opportunities.

Develop the Questions. Increase in profitability is always the goal of any enterprise. Opportunities reside in breaking up organized retail crime (ORC) rings that are having a heavy impact on shrinkage and item availability across your business. Improving safety protocols to reduce internal and external injury claims would avoid payouts. Upgrading loss prevention software to improve workforce efficiency and productivity would result in reductions to labor cost centers. How do you resolve these opportunities? The specific questions can be limitless, but the answers are almost always contained in your data.


Manager loses job after video shows him choking woman

The manager of a west Charlotte beauty supply store has been terminated after cellphone video surfaced showing him kicking and choking a woman.

Sung Ho Lim was the manager of Missha Beauty. He said this all started when the woman in the video, who has not been identified, was confronted about stealing.

In the video, you can hear the woman tell Lim, “Check my bag. I don’t have anything.”

You then see the two shove each other, at which point Lim said, “You hit me.”

Moments later, Lim kicks the woman, knocks her to the ground and puts her in a choke hold. WBTV showed Lim the video, and he confirmed it is him, but he also said the part when she stole an item is not captured by this video.

“This is my fault,” Lim said. “I have to take the whole video and give it to the police.” Lim’s niece told WBTV that her uncle offered to quit his job, in the hope of taking a positive step to help the store.

He also agreed to meet the woman and apologize, but at last check, an initial meeting was delayed.

Employees told WBTV store surveillance video has been given to the Charlotte-Mecklenburg Police Department.


A Checkpoint Security System Can Have Visual Appeal And Still Stop Shoplifting

I am all about using things for multiple purposes. If someone can advertise their business on their vehicle with magnetic signs, decals, window screens, I say do it. Why buy an outfit for one event?If I invest in a suit for a special occasion you had better believe I’m going to find other reasons or places to wear it.  The same can be true for retailers. You may have considered investing in a Checkpoint Security System but you don’t want those antennas at the front of your store. You like the idea of electronic article surveillance (EAS) Checkpoint tags on your merchandise, but you think they will cover up barcodes on cosmetic items. Instead of making the purchase, you keep things as they are and do nothing to stop shoplifting. Stock shortage grows but some of these aesthetic issues bother you. I would like to assure you that a Checkpoint Security System does not have to detract from your business and in fact if you invest in the Evolve P30 EAS antenna, you can enhance your store.

 

I know it may sound odd to those who remember the days when EAS antennas were big, clunky and to be honest, just kind of bulky and taking up room. This is no longer the case. The Evolve P30 antenna has a slim design that is not unattractive to shoppers. To make it a better value the antenna can also be used as an advertising panel, allowing you to increase visual advertising as a customer enters and exits the store. It has enhanced detection capabilities giving it an improved ability to pick up signals from Checkpoint tags, making it more difficult for criminals to hide tagged merchandise and sneak it out of a store. What about the tags themselves? Checkpoint tags have gotten smaller over the years and yet they still provide maximum product protection. For small items like cosmetics there are the 3210 EP Clear Label. These are small and yet have windows that can be placed over barcodes that permit scanning without interrupting the speed of checkout. Because the tags are small they don’t cover up the information or packaging graphics that help to drive the sales of a product.  

 

If you have refused to this point to invest in a Checkpoint Security System due to the concerns I mentioned about aesthetics, I would challenge you to also look at the modern design of the hard tags. The tags are sleek and can be attached to suits, sports coats, designer dresses and accessories. The tags have the same ability to stop shoplifting as other tags, but these don’t detract from the clothes designs. Checkpoint tags also will not harm or damage the items they are placed on. Placed in a seam of an expensive garment, the tags provide protection to stop shoplifting but still look like they belong on this merchandise.

 

Finally, you may be concerned that a Checkpoint Security System deactivation pad at the Checkout lanes may detract from the appearance of your cash stands. Checkpoint has deactivation pads that may be incorporated into scan beds and there are also pads that are stand alone on the counter. The pads that are tied into a point of sale scan bed are out of sight and have no visual footprint. Stand-alone pads have small profiles, requiring little space and have no impact on the appearance of the cashier point of sale. In either case, Checkpoint Systems offer protection without negatively impacting a store’s appearance.

Retail theft prevention has to be a priority for a retailer otherwise shortage from theft can put a store out of business. Concern over the appearance of equipment used to stop shoplifting does not need to be a consideration. Find out all the benefits a Checkpoint Security System has to offer, including adding profit to your bottom line.

 

Get more information on a Checkpoint Security System. Contact us or call 1.770.426.0547 today.
 

 

How to Tackle Employee Theft and Shoplifting

The big retail stores and thousands of convenience stores across the country try to find solutions to tackle shoplifting and employee theft.  The retail industry losses account to $42 billion every year, and it doesn’t seem to be stopping anytime soon.

Security  measures implemented and adopted by many retailers have given these stores some small wins, but overall the losses are staggering.  Inventory adopted by these small stores that are done in real time, and are working in conjunction with software that displays results to the management of these stores instantly,  are invaluable to the operation and profitability of the stores.  As a deterrent to shoplifting and employee theft, these operative measures are of tremendous help to the management as well.

CCTV cameras that provided a grainy image of the customers or perpetrators are a thing of the past.  Now, CCTV cameras provide a clear image of the individual that is easier for police officers and management of these stores to get a clear view of these people. Facial recognition software now provides solutions to these stores that were not available to them before.  And although trained personnel has to work in conjunction with these technological advances, the results have greatly improved over the years.

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


To stop a thief: Shoplifting is a daily battle for retailers

On any given day, more than $35 million worth of merchandise is stolen from retail stores across the country by shoplifters – amateurs and professionals alike – who steal clothing, jewelry, electronics and a host of other items, including food.

Some sneak quickly and quietly with the merchandise, others make bold getaway attempts.

In Tupelo, the retail and financial hub of Northeast Mississippi, the Tupelo Police Department gets hundreds of reports each year.

In 2014, TPD took 483 reports related to shoplifting, according to TPD Public Information Officer Chuck McDougald. Last year, that number fell to 260. So far this year, the department has taken 162 calls.

“Higher shopping volume days correspond to more shoplifting calls,” he said. “Those include weekends and holidays.”

As for the timing of when shoplifters are busiest, apparently they’re not early risers.

“Afternoons see an increase over mornings,” McDougald said. “Generally, it looks like the busier a store is, the more opportunities there are for someone to steal.”

For retailers like Reed’s, which has four department stores in the region, the key to cutting down on shoplifters is to make sure customer service is prioritized.


Are You Doing Enough to Secure Your Stores?

Theft and robbery continue to rise, but new technology and planning can deter.

NATIONAL REPORT — Whether it’s violent crime, robberies, shoplifting or employee theft, convenience stores have been dealing with store security issues for years. New technology is allowing operators to amp up prevention and react faster to incidents, but in many cases — in c-stores and the entire retail industry — the situation continues to worsen.

“I’ve been involved in the convenience store industry for 40-plus years and the risk of loss has not changed. The most worrisome is robbery, and as c-stores evolved into 24 hours, the violence level increased,” Chris McGoey of McGoey Security Consulting told Convenience Store News.

Robberies are up all-around, specifically in convenience stores, as the latest released FBI statistics show robbery up 16.8 percent in c-stores/gas stations from 2014 to 2015. Rosemary Erickson, researcher, forensic sociologist and president of Athena Research Corp., based in Sioux Falls, S.D., says this is the largest increase she can remember in all the years she has been studying crime. Erickson has helped NACS, the Association for Convenience & Fuel Retailing, develop many of its security resources.


 

Preventing Shoplifting

The National Association for Shoplifting Prevention agrees with the retail industry about the effect shoplifting has in all of us. Communities across the country lose the taxes they would otherwise collect from the items being stolen from stores to help social and outreach programs that could benefit those communities in the long run. Shoplifting is a crime that costs the retail industry $45 billion a year, and we as consumers have to pay higher prices to offset the cost shoplifting has in these businesses.

What we, as consumers and retail employees must not forget is that Profiling a customer upon entering a store is not legal, and we must not lose sight of that. Macy’s and CVS stores have had legal suits because of  profiling that have cost them millions of dollars. Assuming a poorly dressed person entering your store is a shoplifter, is assuming too much.  The NASP states that there is no profile of a typical shoplifter.  Men and women shoplift as equally.  Poorly or well dressed customers have the capability to shoplift from the store.

A recent article about ways to prevent shoplifting advises to monitor children and poorly dressed people, because they write“Teenagers are the most likely to steal from you. People that are poorly dressed are statistically more likely to be shoplifters as well”. According to The NASP 25% of shoplifters are kids and 75% are adults. Unfortunately they do not post statistics about how well or poorly those people are dressed.  If years of research from organizations like The NASP tells you that there is no profile of a typical shoplifter, it is distressing to find articles that tells you to target poorly dressed people with no data to back it up. If kids or teenagers are your main target, then you will be missing out the 75% of adults that actively shoplift.

Preventing shoplifting is not about targeting people of color, how well they dressed, or if they are teenagers or not.  People  from all walks of life steal, and some of them are repeated offenders with an addiction problem or other types of issues.  Preventive measures that allows you to monitor ALL people including employees, is the only smart solution to take for any retail store.  Prejudices or preconceived notions of what a typical shoplifter is can be detrimental to stopping shoplifting and employee theft.

Recent research suggest greeting customers as they enter the store is one of the best methods to prevent shoplifting.  Employees should also wander the aisles, but that does not mean targeting “poorly dressed” people. A well lit store, or a store that has shelves that are well organized can deter shoplifters from entering the store.  Shoplifting is an inevitable part of doing retail business, get to know your store, and offer preventive shoplifting measures without targeting specific people.


Improving Customer Service By Using Checkpoint Tags

 

Clothing security tags-3                                                                                                                         wc blog 244
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Improving Customer Service By Using Checkpoint Tags
     Providing exceptional customer service seems like it should start at the front doors when a customer enters a store.  That’s when it seems like it should start but I would argue that exceptional customer service should start before the customer enters your building.  Customer service should begin by filling your store with the clothing a customer wants and keeping adequate quantities of that merchandise on hand.  If a store can’t meet the needs of the clientele the clients will stop shopping there.  Sometimes that lack of goods is due to a poor replenishment system and failing to fill the floor.  What operations are in place to monitor on hand quantities?  Do you have the sizes in clothing that customers are seeking to purchase?  You may have a lack of certain sizes or styles because you have been ordering the most popular sizes patrons want.  If that is the case you are doing a nice job of being in tune with your customers.  On the other hand, what if you are running out of popular sizes because that is what shoplifters want?  Thieves steal what everyone else is buying.  Sometimes that theft is for personal use and the criminal wants to wear the trendiest items.  Occasionally shoplifters steal to resell merchandise and they are going steal those items that other people will want. This means the stolen items will be the popular sizes and popular styles.  If you are not using clothing security tags on merchandise you are not providing the exceptional customer service that will distinguish your business from all others.  You will be out of the garments your valued customers want to purchase.
     So what can a store owner do to improve clothing security?  The most effective step is to start using Checkpoint tags on softlines products.  When used with electronic article surveillance antennas (EAS), Checkpoint tags are an effective deterrent to shoplifting.  These clothing security devices are two-pieces, one side with a pin that is pushed through an item and clipped snuggly in place by the second piece.  Once the pieces are connected it is extremely challenging for a shoplifter to pull it off.  Should a shoplifter decide to attempt to steal the clothing, the garment is usually damaged and much of the appeal is lost.  The EAS antenna is built to sense EAS tags when they are carried close to the doors.  Once the sensor detects a tag EAS alarms within the tower are activated.  Alarms begin to sound and lights flash as a thief is caught off guard, frequently dropping merchandise and scurrying off to find a more vulnerable shop. If the alarm does not cause the shoplifter to drop the merchandise a thorough bag check by a trained employee can usually result in recovered goods.
     Back to my point.  How does using Checkpoint tags or other clothing security tags begin the process of creating an atmosphere of great customer service?  Again I point to in-stock clothing.
If thieves are stealing the most popular items, they are limiting the choices you can provide to your regular or most loyal customers.  I’ll give you an example.  I like a particular brand of blue jeans.  Unfortunately I am kind of short and that can make it a bit of a challenge for me to find the specific size I am looking for.  It may be that if a store is out of this product it is a sign that sales are just that good.  But what if the merchandise is stolen?  If it is stolen, the store loses not only profit from the merchandise, but cost as well.  Another loss for them may be my future business if they are failing to keep merchandise that I, the consumer, am wanting.  Why waste another trip when I can find the item elsewhere?  Clothing security is not difficult but in order to create a shopping experience where the customer service is a top priority for you, it must be taken seriously.
     Start focusing your service on your customers before they even hit the door.  Use Checkpoint tags to make sure you have the clothing your customers are wanting to buy.  Attaching clothing security tags to product will make your customers happy with your instocks and improve your profit line.
Clothing security is important and we can help you with it.  Call 1.770.426.0547 and let’s talk.
        
     
      

Providing exceptional customer service seems like it should start at the front doors when a customer enters a store. That’s when it seems like it should start but I would argue that exceptional customer service should start before the customer enters your building. Customer service should begin by filling your store with the clothing a customer wants and keeping adequate quantities of that merchandise on hand. If a store can’t meet the needs of the clientele the clients will stop shopping there. Sometimes that lack of goods is due to a poor replenishment system and failing to fill the floor. What operations are in place to monitor on hand quantities? Do you have the sizes in clothing that customers are seeking to purchase? You may have a lack of certain sizes or styles because you have been ordering the most popular sizes patrons want. If that is the case you are doing a nice job of being in tune with your customers. On the other hand, what if you are running out of popular sizes because that is what shoplifters want? Thieves steal what everyone else is buying. Sometimes that theft is for personal use and the criminal wants to wear the trendiest items. Occasionally shoplifters steal to resell merchandise and they are going steal those items that other people will want. This means the stolen items will be the popular sizes and popular styles. If you are not using clothing security tags on merchandise you are not providing the exceptional customer service that will distinguish your business from all others.  You will be out of the garments your valued customers want to purchase.

So what can a store owner do to improve clothing security? The most effective step is to start using Checkpoint tags on softlines products. When used with electronic article surveillance antennas (EAS), Checkpoint tags are an effective deterrent to shoplifting. These clothing security devices are two-pieces, one side with a pin that is pushed through an item and clipped snuggly in place by the second piece. Once the pieces are connected it is extremely challenging for a shoplifter to pull it off.  Should a shoplifter decide to attempt to steal the clothing, the garment is usually damaged and much of the appeal is lost. The EAS antenna is built to sense EAS tags when they are carried close to the doors. Once the sensor detects a tag EAS alarms within the tower are activated. Alarms begin to sound and lights flash as a thief is caught off guard, frequently dropping merchandise and scurrying off to find a more vulnerable shop. If the alarm does not cause the shoplifter to drop the merchandise a thorough bag check by a trained employee can usually result in recovered goods.

Back to my point. How does using Checkpoint tags or other clothing security tags begin the process of creating an atmosphere of great customer service? Again I point to in-stock clothing. If thieves are stealing the most popular items, they are limiting the choices you can provide to your regular or most loyal customers. I’ll give you an example. I like a particular brand of blue jeans. Unfortunately I am kind of short and that can make it a bit of a challenge for me to find the specific size I am looking for. It may be that if a store is out of this product it is a sign that sales are just that good. But what if the merchandise is stolen? If it is stolen, the store loses not only profit from the merchandise, but cost as well. Another loss for them may be my future business if they are failing to keep merchandise that I, the consumer, am wanting. Why waste another trip when I can find the item elsewhere? Clothing security is not difficult but in order to create a shopping experience where the customer service is a top priority for you, it must be taken seriously.

Start focusing your service on your customers before they even hit the door. Use Checkpoint tags to make sure you have the clothing your customers are wanting to buy. Attaching clothing security tags to product will make your customers happy with your instocks and improve your profit line.

 

Clothing security is important and we can help you with it. Call 1.770.426.0547 and let’s talk.

 

           

 

 

Alpha Cable Locks Are The Key To Securing Store Keys

 

Alpha Cable Lock-4                                                                                                                WC Blog 260
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Alpha Cable Locks Are The Key To Securing Store Keys
     Retail anti-theft devices are traditionally considered for use on merchandise and rightfully so, but a recent incident involving the loss of keys at the store where my daughter works brought to mind another use of Alpha Cable Locks.  As a Loss Prevention Manager for many years, I had to deal with a number of situations very similar to the one at my daughter’s location.  Manager’s losing store keys, employees losing keys to showcases for specialty areas like electronics or jewelry and even front end supervisors losing keys for registers were not unheard of events.  Sometimes the situation involved an employee forgetting they took keys home with them and they would have to return to the store and turn them in.  Alpha Security products do stop shoplifting but sometimes we limit ourselves and fail to look at other protections they can provide.
     Before I continue I want to tell my readers a little more about Alpha Cable Locks.  These are strong, steel cables connected by a durable, plastic housing that contains electronic article surveillance technology.  This means that they send out a radio frequency signal that can be picked up by an electronic article surveillance antenna, causing the antenna to activate its’ alarm when a tag is carried into the detection range.  The antenna alarm is both very loud and very bright as flashing LED lights warn a breach is taking place.  Cable locks can be cinched closed so they are adjustable when applied to products.  These retail anti-theft devices come in an Alpha 2 alarm and Alpha 3alarm style giving owners choices in the types of locks he/she is buying.  What is the difference in the Alpha 2 Alarm and Alpha 3 alarm Alpha Security products?  The 2 alarm Alpha Cable Lock has a tamper alarm that activates if someone attempts to cut a wire and it activates the EAS antennas as described previously.  The Alpha 3 Alarm devices contain tamper protection, EAS antenna protection AND they have a self -alarm that sounds from the anti-theft device if it gets carried past the antenna and out the door. There is a lot of protection built into one product!
     Returning to the issue of lost keys, store owners and managers may get upset if a set of keys is lost.  I have seen people get reprimanded for losing sets of keys but that does nothing to fix the problem created by the loss.  It is possible a set of keys gets lost and if found by a criminal outside a store, they would have no idea what the keys go to anyways so no harm is done.  Supposing someone finds a set of keys and CAN identify their use, what happens then?  For example, I know that there were people who got their hands on detachment keys for anti-theft devices and used them in our store.  There were also traveling groups that had stolen cash register keys and traveled up and down the east coast stealing cash from stores that had the same registers.   I worked in a store that was hit by one of these groups and we lost a couple of hundred dollars in the process.  I can’t recall the number of times I had to call someone from our store that had gone home with a set of department keys and I asked them to return them. Alpha Security retail anti-theft devices like the Alpha Cable Lock could have been attached to key chains and would have activated an alarm if anyone had walked out of the store with a set of keys.
     While losing merchandise to theft is frustrating, losing a set of keys puts a lot more at risk than just one or two items.   Losing keys puts entire sections of a store at risk, sometimes it is a front end of registers and wrap stands, it may be display cases of locked up jewelry or electronics or even stock rooms and employee office areas.  Whatever the situation, stores can prevent keys sets from being lost or stolen by using Alpha 2 Alarm and Alpha 3 Alarm cable locks to keep keys where they belong…in the store.
 Need information on Alpha Cable Locks?  Give us a call at 1.770.426.0547 now.    

Retail anti-theft devices are traditionally considered for use on merchandise and rightfully so, but a recent incident involving the loss of keys at the store where my daughter works brought to mind another use of Alpha Cable Locks. As a Loss Prevention Manager for many years, I had to deal with a number of situations very similar to the one at my daughter’s location. Manager’s losing store keys, employees losing keys to showcases for specialty areas like electronics or jewelry and even front end supervisors losing keys for registers were not unheard of events. Sometimes the situation involved an employee forgetting they took keys home with them and they would have to return to the store and turn them in. Alpha Security products do stop shoplifting but sometimes we limit ourselves and fail to look at other protections they can provide.

Before I continue I want to tell my readers a little more about Alpha Cable Locks. These are strong, steel cables connected by a durable, plastic housing that contains electronic article surveillance technology. This means that they send out a radio frequency signal that can be picked up by an electronic article surveillance antenna, causing the antenna to activate its’ alarm when a tag is carried into the detection range. The antenna alarm is both very loud and very bright as flashing LED lights warn a breach is taking place. Cable locks can be cinched closed so they are adjustable when applied to products. These retail anti-theft devices come in an Alpha 2 alarm and Alpha 3alarm style giving owners choices in the types of locks he/she is buying.  What is the difference in the Alpha 2 Alarm and Alpha 3 alarm Alpha Security products? The 2 alarm Alpha Cable Lock has a tamper alarm that activates if someone attempts to cut a wire and it activates the EAS antennas as described previously. The Alpha 3 Alarm devices contain tamper protection, EAS antenna protection AND they have a self -alarm that sounds from the anti-theft device if it gets carried past the antenna and out the door. There is a lot of protection built into one product!

Returning to the issue of lost keys, store owners and managers may get upset if a set of keys is lost. I have seen people get reprimanded for losing sets of keys but that does nothing to fix the problem created by the loss. It is possible a set of keys gets lost and if found by a criminal outside a store, they would have no idea what the keys go to anyways so no harm is done. Supposing someone finds a set of keys and CAN identify their use, what happens then? For example, I know that there were people who got their hands on detachment keys for anti-theft devices and used them in our store. There were also traveling groups that had stolen cash register keys and traveled up and down the east coast stealing cash from stores that had the same registers. I worked in a store that was hit by one of these groups and we lost a couple of hundred dollars in the process. I can’t recall the number of times I had to call someone from our store that had gone home with a set of department keys and I asked them to return them. Alpha Security retail anti-theft devices like the Alpha Cable Lock could have been attached to key chains and would have activated an alarm if anyone had walked out of the store with a set of keys.

While losing merchandise to theft is frustrating, losing a set of keys puts a lot more at risk than just one or two items. Losing keys puts entire sections of a store at risk, sometimes it is a front end of registers and wrap stands, it may be display cases of locked up jewelry or electronics or even stock rooms and employee office areas. Whatever the situation, stores can prevent keys sets from being lost or stolen by using Alpha 2 Alarm and Alpha 3 Alarm cable locks to keep keys where they belong…in the store.

Need information on Alpha Cable Locks? Give us a call at 1.770.426.0547 now.    

 

 

Taking The Offense To Shoplifting

Some shoplifters are violent. I follow these incidents and they seem to be becoming more frequent. The reasons why are many and there is plenty of blame to go around: State and local governments, courts and lax Judges, parents and even retailers themselves. Much of that is out of our control. We must keep violent and non-violent shoplifters from even entering our stores.

What is under our control is how we, the retailer, approach the shoplifting problem? First, you cannot be on the defense. We cannot play the defensive strategy any longer. You must go on the offense! Defense is putting up a sign like “no shoplifting” or some other weak response in place and hoping for the best. This includes a camera system. I cannot even count the number of retailers that have asked me why they still have a shoplifting problem when they invested in CCTV.  CCTV is a passive system; it does nothing pro-active.  CCTV is great for after the fact but even the dumbest shoplifter knows you do not have the staff to be watching all the time.

An EAS system like a Checkpoint System is a PROACTIVE system. It is working 24/7. It does not take breaks, vacations or let its mind wander or get distracted. A Checkpoint System protects your retail good at all times. The shoplifters know this and for the most part will be deterred by a Checkpoint System when they look in your doorway. 

If we deter shoplifters by going on the offense as they walk in, then we also reduce the chances for a violent encounter. Contact us today for information on your Checkpoint System and let’s go on the offense together.  


THE IMPOSSIBLE ACT OF “SELLING YOUR WAY OUT OF SHRINK”

I recently read over an article opining the phrase “sales cures shrink”. While the author touched on both sides of the coin, I found it interesting that in today’s retail climate, anyone would think that you can simply sell your way out of losses. Let’s cut to the chase here; we’re not bringing in 20% increases over last year, hell we’re lucky to come in flat to last year. Online giants like Amazon are eating up market share like never before and if brick and mortar don’t do something fast, sales will continue to slump.

Let’s break this down a bit further. Let’s say your shrink last year was 2% to your sales of $1,000,000. That’s a loss of $20,000 for the year, or about $57 a day. Taking that shrink number and dividing that into your loss per day gets you right at $2680. That means you have to sell an additional $2,680 on top of that $57 loss just to get to the break-even point. Understand this, you CANNOT stay in business if all you’re doing is breaking even. You just can’t. You need to turn a profit!

Being a realist here, there is no way that you’re ever going to sell your way out of shrink. EVER. It is a flawed philosophy and if you ever hear someone utter this crummy phrase, understand that whomever that person is, they have no idea what they are talking about. Unless you have some miracle business model and you’re bringing in money hand over fist, then “selling your way out of shrink” just isn’t an option. It’s a start…

Offsetting shrink takes a multi-faceted approach. Just as you can’t sell your way out of shrink, you can’t very well keep everything under lock and key, and it’s impractical to have the security devices on every single sku. If you’re trying to increase sales, you may be inclined to have more displays of merchandise. Copious amounts of data show that a customer is more likely to make a high dollar purchase if they have a chance to touch and feel the item. (Think sunglasses, hunting scopes, sports equipment, etc.) To sell it, they have to be able to touch it. For you not to lose it, you need to secure it in some manner. Once you find the balance of sales vs. LP procedure, you’ll find the winning formula for shrink reduction.

Proper security measures will only go so far to stop external losses. Internal theft accounts for an even bigger percentage of losses inside your store. Knowing who to hire, and whom you are hiring are both vital spokes in the retail wheel of shrink reduction. You need to go a step further and encourage a culture of honesty, integrity and ethics in your store. Employees should feel invested in your business, as that emotional attachment will likely deter an employee from stealing.

As with any problem, there are always a multitude of solutions to bring about positive change. Get away from a soloed approach to shrink and look at all the ways your losses may be tackled. Just as you would be foolish to believe that locking up all of your merchandise would stop theft, you’re of equal foolishness if you believe that sales are the cure all for shrink; and I personally, pity the fool.


FINDING PROACTIVE WAYS TO PREVENT VENDOR FRUAD

You know, I’ve talked a LOT about how to prevent employee theft, but one thing I don’t believe I’ve ever talked about is how to stop vendor theft. Depending on your business, you probably have hundreds of different vendors that supply you with inventory. In addition, there’s also a good chance that you have vendor reps in on a weekly basis. While I don’t know your specific set-up, I can give you some examples from my tenure in the LP field on ways that vendors steal from you (whether on purpose, or not) and ways to protect your business.

Verify shipping contents!

If you’re a multi-store location, you may have a centralized warehouse, but if you only have one store, chances are, you’re getting shipments in from a carrier daily. Reputable vendors will never short change you on purpose, but humans are the ones processing every order, so it’s always important to match those manifests up with what you actually received. Any discrepancies should always be reported to the vendor.

I’ve seen once or twice where a small vendor, specializing in maybe a handful of items was purposefully shorting orders. This happened to me a while ago with a line of shirts. Every time we received a shipment, it would be a case short. Eventually we found out they were doing this to every single customer they had in an attempt to raise capital. It backfired and they went bankrupt in the end.

Check the invoice

Did you call a plumber out to fix a leaky toilet? How about the A/C guy to cool things off? Again, 95% of vendors aren’t scamming you on purpose, but billing mistakes do happen. If you’re not vigilant about what you’re signing off on, it could cost you extra money that eats away at your bottom line. Then again, there’s that 5% that may be adding those extra “services” because they know that a check is just blindly written. Always make sure you know exactly what you are paying for!

Vendor Representatives

At least once a week, I have a rep in my stores. Sometimes they come in to merchandise a new fixture, other times, they come to maintain a dedicated area of the store that their product is in, and other times, they come out to do product demos. I had a rep once steal about $1,000 in product from me. She claimed that she needed to remove about several articles of clothing for a vendor “recall”. My manager didn’t think twice about it and she strolled out with a ton of clothes. We discovered a day or two later that she was recently terminated and at the time of the theft, no longer worked for the vendor. Moral of the story, if any of your vendors want to remove product from your store, you should be on the phone with their office to verify.


TAKE AN OFFENSIVE APPROACH TO EMPLOYEE THEFT

I’ve been doing employee theft investigations for years now. Sometimes, they’re a blast. Often, they frustrate me. Not because the person is a thief, but because the loss could be so avoidable if managers would take the time and play offense. Sure, we can run reports and watch video, but all that’s doing is keeping us on the D-Line. You have to play hard and not be afraid to call an audible when needed.

Kick things off in the interview

Are you a good interviewer, or do you just think you are? I’ve sat around and listened to dozens of managers interview potential candidates. Some stick to the HR script, others go off on their own tangents, others talk non-stop for 20 minutes and rarer, are the mangers that take time to get to know their candidate. Just because someone can show up for an interview doesn’t mean they should get the job.

When asking questions, do so in a way that allows you to understand the candidates work ethic. Don’t ask if they enjoy hard work (most will say YES)! But instead ask for examples in their life where they had to work hard at a job or task. Instead of asking if they think it’s wrong for an employee to steal, ask instead at what point do they feel it’s the job’s fault that an employee steals. Bottom line, get the candidate talking. If you’re doing more than listening, take a step back and ask if you really know the candidate before offering a job.

Return with a background check

Trust, but verify. In today’s world, there really is no excuse to hire a criminal. A background check is simple, easy and provide a host of information that lets you make a more informed hiring decision. People lie. Get over and stay ahead of it.

First down with a strong training program

A good employee has to have a strong foundation. Training an employee shows that you are willing to invest into that person. That goes a long way for most people. If someone took the time to invest time, company resources and money into you, chances are, it becomes morally harder for you to steal from that person. Just look at the opposite. Say you hire a new person for your stock team. The only time they have manager engagement is during the interview and they are thrown to the wolves to learn the job on their own. They won’t care about the job and more importantly, they won’t care about you. That emotional tie is severed and an unhappy employee is more likely to steal from you.

Second down with a culture of integrity

Rules and policies are in place for a specific reason. We simply cannot live and work without structure. It’s important to always address policy violations from all of your team members. Don’t let the little things slip; they can easily snowball out of control. For example, let’s imagine Manager Dave is talking near the front lanes with Little Wendy. Little Wendy grabs a cold drink from the cooler and fails to pay. Little Wendy knows that Manager Dave saw her do this, but Manager Dave doesn’t “sweat the small stuff.” Next week, Little Wendy steals a shirt; she got away with drink, right? Week after that, she steals a designer hand bag. Before you know it, Little Wendy is robbing you blind.

Be open with your team about your expectations. Every employee should know that above all else, honesty and integrity is rewarded. Transversely, failing to meet those standards guarantees the quickest ticket to the unemployment line.

Third down with basic control policies

Implement some very basic controls to prevent employee theft. This is as simple as requiring all employees to check out at one designated register. It could also mean that no personal items/belongings such as purses, jackets, backpacks or lunch kits be kept on the sales floor/office areas and that they must be kept in the break room area. It could also be implementing a package check of all employees prior to the end of their shift. For cashiers, you could have policies that limit the dollar amount of return transactions before needing a 2nd level approval. Think of the ways an employee can steal from you and then implement a control to stay one step ahead.

Touchdown with weeding our poor performers

Even the best interviews end up sideways. I can recall at least two from my past. One young man in particular still stands out, even 10 years later. He was the most enthusiastic and well-spoken person I had interviewed in my career at that point. He was going to be a shining star, I just knew it. 3 weeks into the job and I realized he was a complete flake. Attendance was horrible, performance was below standards, couldn’t multi-task. Disregarded the uniform policy; you name it, he did it. At first, I let it slide due to his sales ability and how attentive he was with customers. That, I learned, hurt the morale of the rest of the team. When you have someone that’s not meeting your expectations, cut them. It’s very easy for a person who can’t follow policies to quickly slip into stealing. I’ve seen it happen time and time again.