DO YOU NEED A BURGLAR ALARM?

240x600Often overlooked for small businesses is the dire need for a suitable burglar alarm system. I talk about EAS placement and CCTV all the time. Those are rendered absolutely useless is someone busts in through the back door. If your burglar system isn’t up to standards, you run the risk of losing everything.

I think (and hope) that all of you have at least a basic intruder alarm system set up with a reputable monitoring service. I want to go a little further than that and give you some insight on what I’ve seen that works and what really doesn’t. I’ve seen plenty systems over the course of my career and while I’m not an expert on alarm systems, I have common sense (something that seems to be lacking the higher you progress on the retail ladder).

Every store, no matter the size should at the minimum have motion detection and depending on your assortment, shock sensors. If you’re not familiar with the latter, they are generally designed for placement on solid walls (think a firearms cage in a sporting goods store, or the cement wall surrounding the vault at the local bank). These alarms trigger if there is a significant shockwave, i.e explosion, or perhaps a vehicle ramming through. Very important to consider depending on your particular assortment and layout. Motion sensors on the other hand are far more common and should definitely be part of your security system. As the name implies, they detect motion.

One thing my company struggled with for years was false alarms. We were actually paying thousands of dollars in false alarm fines to our local police department one year at this one particular store. Almost every night, the motion sensor would trip, police would be dispatched and we’d find no evidence of a breach. We eventually discovered that we had a cat that was taking up residence and wandering the aisle at night. We eventually changed the trigger to dispatch police from one motion activation to no less than 4 before we would dispatch police. This helped out tremendously and we’ve since implemented that practice to all of our stores.

One other thing we found that didn’t quite work with the motion sensors was our outdoor storage yards. If the wind blew a little too hard, or if animals would slip in, they would trigger a police dispatch. What we did was configure the dispatch to only trigger if there was an outside motion trigger coupled with a breach of gate. By a little trial and error, we found the best solution to keep our store protected, all while eliminating any false alarms to our local police department.

Usually attached to any burglary alarm system is the fire alarm system. I bring this up as I want to talk about a technology that we’ve just begun implementing in our stores over the past 6 months that I think is definitely worth the investment. That being delayed egress fire exits. We had stores in this one market that were being just absolutely hammered with fire exit run outs. We had groups of people that would load up shopping carts full of buggies and push out of the fire exits where an idling pickup truck is waiting. We struggled to stop this trend and were hit with a brick wall; until we tested out the delayed egress.

If you’ve never seen these in action before, they’re pretty awesome. What happens is pretty simple. If someone attempts to open a fire exit, the door has a 10 second delay; meaning the alarm sounds, but the door cannot be physically opened for that time period. The only way this is circumvented is if the fire alarm is activated; then the door opens immediately. The first time our fire exit bandits hit a store with the new doors was priceless. The look of sheer terror and panic on their face as they tried to get out the store, but couldn’t was pure awesomeness. This install, while an investment, has already shown to have not only great potential, but has already given us results.

As with any system, there isn’t a “one size fits all” plan. I encourage everyone to do their own homework when it comes to protecting your store when you’re not there. I guarantee that you can find a balance between your store needs and your budget. While with any new system, there is always an investment to be made, think of this as an investment that you can’t afford not to take.


HELP ME! Tips To Maintaining Your Checkpoint System

 After 8+ years in the Navy as an Electronics Technician, I considered my options for the next phase of my career. My research lead me to a growing company named Checkpoint Systems, Inc. A position as a Field Service Representative was quite a change from military service. Both were good experiences, but very different. Each Involved travel, I traveled much of the world with the Navy, while exploring mainly the Eastern U.S. with Checkpoint Systems. More recently I joined the team at LPSI, doing my part to provide technical support.

Over the years I have found some items that many times Retailers do not take into account. Many times the simplest of solutions will fix an issue with your Checkpoint system. 

EASEnvironment of EAS: Electronic article surveillance systems of all varieties are subject to their surroundings. The wrong environmental conditions can cause phantom alarms, false alarms, or poor detection. How close are merchandise, metal racks, and wiring? Is your store front in need of maintenance? I will discuss some of the common items that may be affecting your EAS system performance.

Many EAS systems some level of 360° detection.

Not only do they detect in the doorway, they also have backfield detection, the area on the opposite side of the pedestal from customer walk way.

eas fieldTagged merchandise, metal racks, and electrical wiring in this incidental detection zone can have an adverse effect on system performance. As a general rule, tagged merchandise should be equivalent of at least ¾ of you doorway aisle width away from each EAS pedestal. Example; tags should be no closer than 4.5 feet, in a 6 foot doorway. Where possible: metal racks and electrical wiring should be 5 feet or more away from the system.

The store front is often the first impression a customer has of your business. It is really much more than that. Door manufactures do not design doors with EAS system in mind. The condition of older doors and framing can be causing EAS system issues. Loose metal trim, or metal on metal scrapping as a door swings or slides, can cause a false echo, tricking the system into an alarm condition. Even new doors can unintentionally affect a systems performance.  

IEAS Repairf you are not quite happy with your EAS systems performance, you may be able to take a few simple steps towards improvement. Make sure no tagged merchandise is in the backfield detection zone. Move that metal rack a foot further away. See if any wires can be rerouted, away from the system. If a bolt, nut, or screw is loose, tighten it. Have a door maintenance professional adjust the door hinges so the door does not drag on the threshold. There is no one answer to resolve environmental interference with your Checkpoint system. I have given a few ideas, but if you continue to have system performance issues, contact Loss Prevention Systems for service. 


COMMON SENSE TAGGING

shoplifting3You know, sometimes we seem to overthink EAS tagging. Very often, I find that my store managers will focus so heavily on tagging a small, inexpensive (but high shrink) item, that they completely overlook the big ticket item that is absent of any physical security measure. Why is that? A large cooler is just as susceptible to loss as a pair of socks. Maybe it has to do with the perception of what is driving shrink in our stores.

Just last month, I hosted a district LP conference for store managers in my area. I asked each store manager to write on a sheet of paper what they felt their highest shrink item was in there stores. The results were pretty shocking. Not a single one got it right. Heck, they weren’t even close. Most of them hovered around the small items that they knew were being stolen on a daily basis; like pocket knives, wrist watches, socks/underwear, etc. These are also the areas that they are focusing their EAS tagging at.

What most didn’t realize was how high their highest shrink categories actually were. So what I found was that they all had a perceived vision of shrink in their store, and instead of using the reporting given to them, they were mostly making business decisions based off of their own emotions. We all know how that can end up, right? So how can you avoid falling into this trap?

Most companies give their managers some level of reporting that showcases their sales as well as shrink. It’s best to use these reporting tools to help plan on what you’re going to tag with an EAS device. For example, if you’re looking at your shrink report and each week you have hundreds of dollars of losses in a certain style of headphones, well it’s probably time to wrap a Spider Wrap around them.

Additionally, sometimes, you have to use your years of experience in order to be pro-active to potential losses. Let’s say your in store reporting shows you have historically seen losses from high end footwear. It’s spring time, and you begin to receive this year’s new high end shoe line. It would probably be a wise idea to tag these before they have a chance to walk off, right? Of course! The same could be said for hundreds of products in your store.

Don’t overthink your EAS tagging methods. If you have a product that is suffering from theft, then tag it. Don’t wait for someone to tell you to do so, and don’t sit back idly while your profits walk out the front door. The reason EAS tags were invented was to save you money. Let them do their job, so you can continue to have yours.


CHECK IT EVERYDAY!


LPSI EVOLVE-Store Mobile AppYou’ve got a great EAS system. You’re stopping shrink and keeping profits in your store. You’re happy. Losses are down and you might actually make your sales targets. So it’s like Ronco Rotisserie where you just “set it and forget it,” right? Not quite. You have a few things to do if you want that system to provide you years and years of a return on investment.

While a good EAS tower won’t need much in the way of maintenance, you have to make sure it is in working order on a daily basis. Sometimes, I’ve found that with all the customer traffic in and out, kids running in and out of the store and even those with malicious intent, that often the towers get un-powered (unplugged). Part of your daily routine should be to test and verify the towers. This is incredibly easy to do; just pass a tag through the gate. If it alerts, well, your system works. If it doesn’t, then you have a problem! I have my managers do this each and every morning.

You would think that this would be simply, even a common sense practice, right? Well, you’d be surprised. I had a store a while back install a new EAS system. It was a system that had the sensors built in to the floor. You’d never know that it was there. Well, that store manager sent in maintenance request after maintenance request hollering and screaming that the system wasn’t working. We’d of course send a tech out, who would confirm it was functioning properly and a few days later, the store manager would be yelling again that it wasn’t alarming when tags were passing through.

I decided to stop by the store and see for myself. As soon as I walked in the doors, I saw the problem. This store manager was displaying pallets of aluminum boiling pots up against the front doors, which put them right over the sensors on the ground. When the techs came to inspect the system, they moved them out of the way. The store manager then challenged me on where else he could display those pots… but that’s for another article.

Bottom line here is that you need to inspect your system and test it daily. Whether it be a manger, or a member of your sales team, you’ve got to make sure that it’s working and there’s nothing impeding its ability to stop shrink. A car will only drive it has gas it, right? Same goes for your EAS system!


YOU CANNOT STOP SHOPLIFTERS!

theft (12)I don’t care about solving social problems. I don’t care about saving the world (okay maybe I really do). But I cannot fix many of these things myself. I cannot make shoplifters change their evil trade for real work. But I can make shoplifters go somewhere else and leave my customers alone. 

I have been doing this all throughout my career starting as a Store Investigator through District and Regional Loss Prevention Manager positions. This culminated with being the successful Director of LP for several large Retailers including one international company.  Add to that all these years with my own company. I know how to stop shoplifters and what to look for.

If you want to attack shoplifting and fix it once and for all you need to understand who the shoplifter is and how they shoplift. There is not enough space in this article to teach you all that needs to be said. However, there are several important points you must understand to fight off the shoplifters.

First, you must understand that you are not going to “stop” shoplifters from doing what they do. They are going to steal regardless of what you do. What you can do is send them elsewhere. Down the street to someone else who is not prepared. Don’t be THAT guy!

To do this you need to do two things: know your enemy and have the equipment (Checkpoint & Alpha) in place to make your store a hostile environment for them but a delight for your good customers.  I am not going to talk about Checkpoint and Alpha here. You know how to reach us for that.

I want to discuss knowing your enemy, the shoplifter.  There are three types of shoplifters:

  • Impulsive shoplifters who steal because the opportunity exists.
  • Amateurs who steal consistently. They usually keep the merchandise.
  • Professional thieves who steal to resell the merchandise.

Shoplifters can look like anyone! In fact, if you think you know what they look like, you are fooling yourself. Because you have a stereotype in your mind, then you are missing most of them. Shoplifters will most likely try to blend in and look like your normal customer traffic. That is their stealth: hide in plain sight.

When do they tend to steal? The simplest and best answer is any time you or your staff is not paying attention. I can give you a list but not all of it will apply to your individual store. So do this. Observe your operations, I mean take a hard look. Ask yourself, “When would I steal, if I were a low life scum of the earth shoplifter?” Even better, since you are probably too close to the forest to see the trees, ask someone you trust to look at this. Not a Police Officer, employee….. someone that will give you a real, sometimes hard to swallow answer.  Then make adjustments to what and how you operate.

How do they conceal and steal your merchandise?  Well, the list is almost endless and you should ask me to conduct my live webinar for you and your staff (my commercial). By the way my webinars are free of charge and can be as frequent as necessary for our customers. 

Now that the commercial is over, some of the most common ways they conceal is with pockets and purses. Simple is usually the answer.  You also want to watch for shopping bags and baby strollers (also known as shoplifting buggies). 

There are other issues you need to understand such as distraction, refunding, tag or package switching and more. But for that I guess you will just need to become a customer or if you already are a customer, simply pick up the phone, call us and schedule the free training. 

Have a SUPER February! 


SOCIAL MEDIA AND ITS BENEFITS TO A LOSS PREVENTION PROGRAM

shoplifting4Over the past five years or so, social media platforms have exploded. Sites like Facebook, Twitter, or Instagram are essentially a one stop shop for all your news, entertainment and whatever your Aunt Dolly is doing today… Like most Americans, I visit these websites frequently throughout the day (although, I am weaning myself off this addiction slowly, but surely). Businesses have also been quick to jump on the bandwagon and have found that direct to consumer marketing, especially the free kind of marketing, can really help a small business soar. With so many people, places and things interconnected, you can see how the Loss Prevention Industry uses these platforms to not only aid in investigations, but to help track down fencing operations, retail ORC groups and even dishonest employees.

  About a month or so ago, I was scrolling through a Facebook “online garage sale group” in my area. A few scrolls down, I noticed a guy was selling a store merchandise credit from one of my stores. I looked up the name in our internal system for any hits and sure enough, it was an employee at one of my stores. A little investigating showed that he had conducted a return of a high end baseball bat, but according to our sales records, the store he worked in had not sold that particular sku. Furthermore, inventory data showed that store to be missing one unit. A little more leg work, and I was able to determine that the employee had altered the price on a high end bat, purchasing it for only a few dollars. He returned the bat for full value at another store and posted the credit on Facebook to sell. From our research, he had done this about a dozen or so times with various merchandise. I was able to make a pretty substantial case from a lead generated from social media.

Take things a little further. Most of you reading this are small business owners. Chances are, you don’t have some large Loss Prevention department; heck, your LP department might be the 16 cameras you have set up in your store. There’s absolutely nothing wrong with that; in fact, without the hassle of a large company’s legal department, you have more freedom with those CCTV images of a thief than I do. Most police departments and sheriff’s offices around the country have also been accepting of a social media presence. From the community outreach and the ability to hear concerns directly from citizens, it’s a great way for law enforcement to take a big step into the future. This also gives those agencies the ability to share BOLOs with an enormous amount of people.

Not two weeks ago, a local sheriff’s office shared some CCTV images from a clothing boutique store that showed a female shoplifter, who made away with several hundred dollars in clothing. The boutique had a very good camera system and shared those images from their Facebook page to the Sheriff’s Office page, who in turn shared it with their followers. Literally, within 30 minutes, the comment section was full of tips, eventually leading to the shoplifter’s identity. Heck, some people even began tagging this woman in her own wanted poster. Classic. Without this platform, this crime may have gone unsolved, and that business would have taken a hit out of their own pockets.

While social media can boost sales and drive traffic into your store, it can only be a great tool to reduce shrink. The ability to quickly search through your employee’s friends, or search in wanted ads for particular items and the ability to share CCTV images quickly and with great success, makes social media almost a necessity of today’s small business’s plan to combat shrink and increase profitability.


IDENTIFYING COMMONALITIES AMONGST SHOPLIFTERS

shoplifting1Ever notice how so many different shoplifters, from various backgrounds and demographics all share similar characteristics in the manner in which they steal, the product that they steal and the methods used to conduct their acts? Well, I did and it really got me thinking. Why was this so? Is there some large underground shoplifting network where this information is swapped amongst the thieving brethren? Kind of.

A while back, I did a piece on how shoplifters were brainstorming ideas on the blog site, Tumbler. A few searches here and you can find the easiest way to steal from just about any big name retailer, what product was the easiest to steal, and how to steal without being caught. Check it out if you have some time. That led into some research of my own. Shoplifters, especially the frequent flyers, we’re obviously communicating with one another, but I was curious as to where, and how. If you’ve been in the LP industry for a few years now, you agree that there are certain driving factors behind a rise in shoplifting. My two theories (and I have only my intuition to back this up) on the rise are the heroin epidemic that is sweeping through the country and the (almost) decriminalization of shoplifting in some states.

Heroin is a terrible drug. Most law enforcement sources attribute the rise in heroin use to the crack down on prescription opioids. When law enforcement began devoting resources to dry up “Doctor shopping”, it created a vacuum. Heroin filled that void. This highly addictive drug will get a user addicted on the first shot. It’s only a matter of time before the user will lose their job, house, vehicle and resorts to stealing on a full time basis to support their habit. What do all heroin addicts have in common, aside from the obvious? A dealer.

Every day, those addicts must find their dealer to score another hit. At some point, they run into the same faces day in and day out. No one has a job. No one has an honest income. I’ve interviewed several dozen shoplifters over the past few weeks; mostly those suffering from a heroin addiction. They all tell me the same things. When they go out and score their drug, they run into other addicts and they share what stores are the easiest targets, what merchandise most easily stolen, where to take the stolen goods to and even some pretty sophisticated return fraud schemes. Enter the decriminalization of shoplifting.

There’s a reason these people gravitate towards shoplifting and not armed robbery, or another form of criminal activity. It’s easy. There’s high reward and little risk. It also doesn’t help that legislatures across the country seem to be working against law enforcement agencies when new laws are adopted that lessen the penalties for shoplifting, or raise the threshold for felony cases. Several states have recently raised the dollar threshold for felony theft. Why? Too many people were being charged with felonies. Is that really the way to tackle the problem? What if we did away with punishment for murder because too many people are doing it?

I don’t see the rising shoplifting trend to start going down anytime soon. Not until we address some of the root causes of the behavior and start giving out more serious consequences to those who choose to shoplift. Until that day comes, we have to remain ever vigilant to the threat we are faced with each day. It is our jobs to be proactive and to constantly outsmart the criminal element before they have a chance to make off with our profits.


STAYING SAFE DURING AN APPREHENSION

shoplifting5What is the most important factor to consider when you make a shoplifting apprehension?

Safety. There is no single factor that is stressed more heavily within my department than personal safety when making a shoplifting detention. Not only do I implore my teams to be vigilant of possible weapons, but to also make sound business decisions before making a detention that could jeopardize their safety, the safety of the employees of the store and the safety of our customers. In the blink of an eye, what seems like another routine apprehension can quickly turn violent.

Play by the rules.

Our industry, over the past decades, has come a long way from the days of chasing down shoplifters by any means necessary. We’ve evolved from brute strength and a show of force, to a more pro-active and analytical approach to shrink, especially the way we approach shoplifting incidents. Enter the 5 steps for an apprehension. Selection, display intent, conceal, maintain visual, exit store. Every LP department, for the most part, has adopted this. In addition to no touch policies, this greatly reduces the chances for an apprehension to become physical in nature.

Cooler heads will always prevail

Hiring someone that cannot control their own temper is a dreaded mistake. Even I am not immune to making this type of mistake. Granted, we ask our agents (and ourselves) to be there to stop someone from stealing from us. Shoplifters come from different backgrounds, and often we are facing career criminals, or those with drug addictions that are not in a stable mindset. More often than not, the shoplifter will immediately escalate a detention from the moment they are approached. How many times have you stopped someone and they immediately began yelling at the top of the lungs every swear words known to man? I experienced this three times this past week for me. This is where a calm, collective LP professional is most needed. What if you started yelling and screaming back? Chances are, things will get ugly. My advice is simple. Act like an airline pilot. It doesn’t matter if the wings are on fire and you’re hurtling towards the earth at 500 mph. That pilot will still speak in the same tone and pace. It’s to keep the masses calm. This technique works great with rowdy shoplifters too.

What if I’m faced with a weapon?

This has happened to me personally on 3 occasions. Once, a heroin addict pulled a knife on me. The second time, a firearm fell from the pants of a shoplifter and the third, my personal favorite, is when I was pepper sprayed by a shoplifter. Even though it was hard to do so (especially my sprayer), I immediately disengaged the apprehension and allowed them to make quick egress of the store. Yeah, I was pretty upset for a day or so that they got away, but the end result is that no one got hurt. That’s the key; there is nothing in your store that is worth sacrificing the safety of anyone for.

There really isn’t another job in the retail industry where personal safety can be compromised in the blink of an eye. I bet that guys in the IT department never have to worry about being pushed to the ground by a maniac as they try to run out of the store with $2,000 worth of cologne. LP is a unique business. We thrive on what others shy away from. While you’re out this week busting thief after thief, please remember your safety, and the safety of those around should take absolute priority above all else. There is nothing in your store that is worth the risk of injury. Be safe and happy hunting.


Let’s Make 2016 a More Profitable Year

image3-NEOBIZMAG

Let’s make 2016 a more profitable year by stopping losses before they occur. Think of it, as a retailer you run your operation, purchase and then sell the products you offer and try to hold your expenses down. But when you have employees that cause inventory theft, cash theft or any other loss it comes right off your bottom line and out of your pocket. The key is to keep theft from occurring before it happens!

Do you really know who is working for you? It is inexpensive and easy to find out. You should screen EVERY person you hire. Even after 20 years of running pre-employment background checks on people for our clients we are still amazed and what we see. It is not unusual to see drunk driving, theft, assault, shoplifting and even some very violent criminal records. Do you really want people like that working for you? That is like pointing a gun at yourself and hoping it is not loaded. People who are not responsible in life are not going to become magically better because they work for you.

Most states allow a statewide criminal records check. If not then we look in the counties they have lived in.

Another check that should be run is a credit history. This can be done on people that will be handling your cash and other assets. My wife was once the Branch Manager for a large chain of banks. The banks policy was to look at the credit history of the people that they were considering for employment. Their thought process was “If you cannot handle your own money why would we want you to handle the banks or the customers?”

Another check should be to verify that they are not on a sex offender list. Imagine this. You hire someone. They sexually assault a customer or another employee. Even if it is simply alleged and then investigation shows they are on a list. Your liability just skyrocketed.

In the past we could simply say we did not know that they were a sexual predator, criminal, thief…. But that is not the case anymore. The courts have leaned towards the position that it is easy and inexpensive to screen someone so if you do not you may be left in a terrible position both criminally and civilly.

So attack loss in 2016 up front. Get your employees background checked, screen any new employees and then follow up with an annual check. It may just make your year more profitable and one with less headaches.


CHRISTMAS EVE CHALLENGE

shoplifting6I thought I’d take a lighter note and share some post-holiday humor. It was quite an eventful end of December for me and my team. We definitely had our share of idiot shoplifters. A few stood out that really deserved to be on the highlight reel. I hope you enjoy these as much as I did!

Every year, I make it a point to work extra hard to catch a thief on Christmas Eve. Some people call me cold, but why should I pay for gifts for someone that doesn’t want to work? They are, in fact, robbing me of my bonus! So I found myself working Christmas Eve with my top agent, at our highest shrink store. I was, in fact, stacking the deck. About noon-ish, I notice a guy practically running through the store with a shopping cart. Not too odd, given that most people are picking up last minute gifts. I watched as he loaded three motorized scooters into his cart and dashed over to the shoes. There, he asked an employee where this year’s hottest shoes were. Once shown, he threw 4 pairs in the buggy and headed to the apparel section. I stopped watching at this point and made my way around the store. As luck would have it, we intersected paths and my suspect raced down a secluded aisle. He emerged from the next aisle, as I was standing there. He rushed passed me and I noticed that his shoes were now concealed in shopping bags and he was headed to the doors. I called my agent and by the time he answered, my guy was out the door! I love a good push out.

We catch up to him under the patio and he ditches the basket and breaks out running through the parking lot. We break off and relay his direction of flight to local law enforcement. To my amazement he stops running and ducks into retailer next door. Police arrive and we both enter the store to identify him. It didn’t take long for us to find the guy, standing in the magazine section, pretending to read an upside down edition of the Times, sweating profusely, and practically wheezing.  He then tried to run from the police. Seriously, I have no idea where he got the energy… On his second run, he was (un) lucky enough to knock an officer to the ground. That officer was in no mood to run; Hunter was, though. That Belgian Malinois broke out of the patrol car faster than American Pharoah at Belmont Stakes. It was awesome. I’m also 10/10 on throwing a thief in jail on Christmas Eve. In case you were keeping score.