After Dark Is Not Just For Vampires

October 8, 2015 by Leave a Comment

Money1For Retailers there are a number of scary things that happen when the sun goes down. As we get into fall it becomes darker, earlier. This can become problematic for us. We have issues that get magnified with darkness that concerns employee/customer safety and the safety and security of our businesses. There are the usual concerns of employees walking to their cars after closing and the like. I want to bring up some that you may have not considered.

Employees – Are you taking your deposit after closing? Night makes this a much more dangerous task. Consider changing this to mid-day. Take it at lunch time. Lock the deposit into the safe overnight. Then take it during the day when there is less risk. Safes are not very expensive. $400 will get you a decent safe. Bolt it to the floor so someone does not steal the safe. When you take the deposit to the bank conceal it in something other than the bank bag. Let’s not make it too obvious. 

Robbery – Many of us never discuss this with our folks, we should. What is your plan? Do they understand that their safety and the safety of your customers trump everything else? If you are not sure what you should do or say, contact us.  I can send you a draft policy and some materials you can use (free of charge and I am not going to try to sell you anything). 

Customer and Employee Safety – Yes you could be liable for something that happens while on your property. This includes your parking lot. Even if you are leasing in a strip center. If there are lights out in the parking lot or if it is poorly lit then do or say something. An email to the management company or property owner will put them on notice that you have a concern. If you have control, get it fixed. If there are people hanging around that you are uncomfortable with, then contact the Police. Ask to meet with a Sgt. or Lt. over your area. They would rather prevent an issue than deal with the results. If the department has public business meetings, you should attend. This will give you information on crime trends in your area and ideas on how to combat them.

Speaking of the Police, have you taken the time to make acquaintances with the Police Officers working your area? Do they know that you always have a cup of coffee available and want their presence in your store? Do they know that you encourage and support their efforts? A uniform officer and a patrol car in the area of your business goes a long ways to preventing problems. 

As a former Police Officer, I can tell you that these things mean a lot to them. The majority of contact they have with people is with criminals and victims. Normally they do not see the rest of us as we are not their normal “customers”. Especially in today’s times a kind word, show of support and asking for their opinion and guidance mean a lot to them. Do this enough and when you really do need them, They will be responding to the face of a person they know instead of an address.

Remember, those Officers, their spouses and friends are also your potential customers.

Shoplifters – Remember that shoplifters need one thing to ply their craft: concealment. Even if you have a Checkpoint System make sure that your store is brightly lit, that there are no hidden spots that make a shoplifter feel warm and fuzzy about concealing merchandise. Make sure that your folks fully understand your vision of customer service. Staff that display good customer service skills will shut off most impulse shoplifters. Consequently good customer service skills are not just a tool for sales but a weapon against shoplifting.

Customers that have Checkpoint Systems that LPSI installed can always schedule a free, live on-line shoplifting seminar. We are happy to help. October is a great time to schedule this before the holiday season gets in full swing. This will help raise your staff’s shoplifting awareness for the holidays.

Let us know, if we can help you get ready for your holiday selling season!

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THE SHOPLIFTING NETWORK

October 8, 2015 by Leave a Comment

shoplifting7We live in a world where technology helps us with everything. From the mundane, to sending a rocket to the edge of our solar system to beam back pictures of Pluto. Without the rampant growth of technology and the way we communicate today, none of this would be possible. In the Loss Prevention World, our technology helps us to detect anomalies that could be indicators of fraud. We have the latest high definition camera systems (that we can also access on our smart phones) to view those anomalies with the push of a button. I often think about our industry 20 -30 years ago and wonder how we ever got by. Could you imagine prosecuting an internal fraud case with absolutely no video? I’m sure there’s a lot of you out there that remember those days.

One thing we, as a society, probably take for granted the most is ease of communication. With the touch of a button you can communicate with anyone, from anywhere, so long as there is an internet connection. So what has that done for the LP industry? It’s allowed us to connect and share ideas with our peers across the country and across the globe. We can share information with our law enforcement partners anywhere, at any time. If there’s a big ORC group, we can identify them, track them, share information with others and ultimately have them arrested. The greatest advancement in the LP world, in my opinion, is how well we network with one another.

Networking is key to our survival. I want to know what’s happening somewhere else before it begins to affect my stores. Likewise, I want to share new ideas and tools to help my peers, even if we work for competing retailers. No matter who we work for, our main goal is the same; reduce losses caused by theft, fraud and other forms.

What if I told you criminals operate in the same manner?

shoplifting1

This is a screen shot from a popular blog website. If you know where to look, you can find a treasure trove of shoplifting “how to” guides. What we see above is someone who wants to boost some alcohol. Simply ask the “community” and someone (usually multiple someones) will be more than happy to provide you with tips, tricks and even specific methods to steal from whatever store your heart may desire.

Not only are these individuals concerned about what’s the best way to shoplift, some (if not most) are concerned with potential consequences of actually getting caught. There exists here, a somewhat underground community of shoplifters who are more than eager to share thshoplifting2eir knowledge to others who may be new to the game. Much like a tenured LP manager taking a green agent under their wings.

I must admit that is very easy to distinguish the “rookies”. This community is very well versed on all the latest EAS devices that we use to (try) stop them. I’ve even seen links posted to different websites where one can purchase magnetic detachers and
other tools that would make the most seasoned LP professional cringe at the thought.shoplifting3

Of course, it doesn’t just stop at shoplifting. Take this one for example. This member is boasting about a new computer and monitor he “walked out” with. This was your classic “sweetheart deal” with a dishonest associate. Note how they state the dishonest employee was able to fake a transaction because “everyone trusts him and no one pays attention.”

Does that sound like your store?

shoplifting4

I could sit back here and post screenshot after screenshot. The one common theme amongst all these posters is that stealing from big box retailers is a victimless crime. They see what they do as something that is not “a big deal” as they perceive that our insurance will cover our losses. What they fail to see is the actual damage they are doing to our stores. Lost product = lost payroll = lost wages. They, like every shoplifter and dishonest employee, are taking money right out of the pockets of our employees (including us!).

I hope by reading through this today, you will have a little better understanding of how the 21st century shoplifter operates. No longer is shoplifting a shameful thing. Tto people like this, it is something to be celebrated. By “saving” money, they may very well put each and every one of us out of business.

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TAKING CARE OF THE PEOPLE WHO TAKE CARE OF YOU – HOW TO MOTIVATE YOUR LP TEAM

October 7, 2015 by Leave a Comment

image3-NEOBIZMAGI’ve had the pleasure of running the most productive team of LP agents in our company for quite some time. My team of 10, who cover markets across the Southeast, consistently make solid cases day in, and day out. Not too long ago, my peers put me on the spot at a regional meeting and asked what makes my team so successful. We have the same number of people in markets like Houston and Atlanta, who don’t have the number of cases that we do. So what’s the secret to success?

Hire the right person

From the time I have an opening, I look for the perfect candidate. I actively go out and recruit when time permits. I’ll reach out to my industry peers and find out who their top performers are… and not so shamelessly try to lure them away. I have never once settled for a “warm body” hire, as I see all too often in our stores. I not only need someone who can catch a thief and build cases, I need someone who can work alone, who has a strong work ethic and can build partnerships with stores teams, managers and local law enforcement.

Pay for performance

When you find that right person, don’t let a few dollars come in the way of a great hire. Money is a great motivator and in this field, you get what you pay for. Spending that extra payroll can pay off for you in the long run. This assures that you are getting someone who will be dedicated to their job in addition to being less likely to go rogue and cause you a potential lawsuit. Remember, you can get a job flipping burgers for $10/Hr. is that the quality person you want on your team?

Training

I don’t care how much experience someone has. When they come to my team, they all get the same amount of training. I often hear store managers say that “they don’t have time to train new store employees.” That makes me cringe. Without proper training, you are setting a new hire up to fail. I personally provide the first 2 weeks of training to all my new hires. Yep, I scrub down to a t-shirt and shorts and work the floor, just like the old glory days. After that 2 weeks, I have them shadow 2 of my top performers for another 2 weeks each. 6 weeks of training altogether before they are ever released on their own. There is always time to train.

Set expectations

Time and attendance. Cases. Personal code of conduct. Interaction with managers/law enforcement. All these areas need to have certain expectations set in stone. I expect my team to arrive to work on time each day. I expect them to make solid cases each week and I expect them to conduct themselves in a professional manner at all times when interacting with anyone on behalf of the company. This also includes shoplifting suspects. When someone on my team fails to meet those standards, you can bet your paycheck they will be called out on it. I don’t accept sub-par performance in any job category; neither should you.

Motivate, Motivate, Motivate

I can’t stress that enough. A productive team is a motivated one. Find ways to get your team motivated. For me, the simplest, yet most effective method I’ve found is free food. My top performer each month gets a $30 gift card to the restaurant of their choice. I also find the time to spend at least a few hours each month with my team and when possible, buy them lunch. Twice a year we’ll do a cookout as well. I’m telling you, free food is a motivator. Try it out.

Aside from free food☺, I find that calling out great performance motivates everyone. Just last week, one of my agents made a $1,500 shoplifting stop. I publicly recognized him for his work and 2 more of my agents made $1k stops that week. Would they have made those stops anyway? Maybe? What I can tell you is that there exists this atmosphere of friendly competition amongst my team. Seeing their peer get recognized undoubtedly made them more focused in order to gain that notoriety as well. Just as you call out the bad, always call out the good.

Communication

This is my “cliché” for a successful LP team, but it holds water. Each week we all get on a conference call and talk about the previous week. I’ll let each one of them talk about their apprehensions and what they could’ve done better during each case. This is also an opportunity for me to bring up any concerns I have, company initiatives coming out, or any other house cleaning that I need to speak to. This is also a great time to discuss new trends and big time boosters that we need to focus on. If you’re not speaking with your team regularly, then you’re leaving valuable information on the table.

Weekends/scheduling

We’re retail. We’re busier after 4 and on the weekends. Does that mean you have to work your team a closing shift every night and every single weekend? No. (I heard the collective gasp.) Remember I told you my team is the most productive in our company. Guess what? They only work 1 ½ weekends a month. That’s right. I schedule them to work one weekend and one additional weekend day. During the busier holiday times, we might increase that a little bit, but it’s important to keep those in there to prevent burn out. I give them a free extra weekends off, they give me plenty of shoplifters. I have no complaints. I also don’t schedule them the same mid/closing shifts every day. I vary from  openings, mids and at least one close per week. Again, I try to prevent the burnout of working a close every Friday, or all day every Saturday.

You’ve more than likely heard plenty of these before, however applying them to your LP team can be highly beneficial. We have to remember that those we employ are put in incredibly stressful and often potentially violent situations each and every day. The idea that they get up and are happy to come to work each day is a true testament to their character. I had a boss a long time ago tell me that employees are people first and employees second. You take care of the people who take care of you. Those two lines are how I run my team and it’s never let me down.

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ANNUAL INVENTORY BEST-PRACTICES

October 7, 2015 by Leave a Comment

theft (11)For a large portion of retailers, this time of year means one thing, inventory. I personally hate this time of year. I’m getting a little older and I just can’t hang with overnight shifts. It doesn’t make it any better that my bosses what us (RLPMs) to attend as many inventories as our schedules allow… I’ve done three this month so far and my sleep schedule still isn’t back to normal. With all that inventory on my brain, I thought I’d share some best practices for my peers out there.

First, let me say that my company doesn’t contract any third party to conduct our physical count. We do it ourselves. While there are some great companies out there who service some of the world’s leading retailers, we’ve found that our inventory management is much better when left to the people who it matters most to.

Second, we take the majority of our store inventories overnight during September-October as opposed to the end of the 4th quarter in the January time frame. We do this because for several reasons. One, our stores are slower in regard to foot traffic right now. Second, we are light on inventory as we gear up for the holiday. Lastly, we want to catch all those “out of stocks” that we have through the store prior to the big rush. This allows to be in a far better stock position going into the holiday shopping season. You can’t sell pegboard, right?

In my years of supporting the inventory process, I’ve seen what works, what doesn’t and what is just a waste of time. Here are just a few of my inventory best practices:

Count overnight – No customers. That’ all that needs to be said ☺

Apparel – Key here is making sure that all garments have a barcode. Missing tags can really hold up a count for hours. Starting about 1 week out from inventory, begin assigning key associates to go rack, to rack, to rack looking for missing tags and replacing as they find them. We use a sticker on each rack with the associates initial once it has been cleaned up. This gives us accuracy and some level of accountability.

Footwear – if you sell footwear, you have mismates. Now is the time to purge them.

Hiding spots – As a manager, you are fully aware of all the hiding spots in your store. Find them, as well as all the merchandise hidden within. Think warehouse racks, offices, storage cabinets, and basedecks.

Basedecks – I’m going to give them their own bullet point here. A basedeck is the bottom shelf on a gondola. They can be lifted up and merchandise can be hidden under them. I make it a point to lift up every single basedeck in the store prior to inventory. I always find thousands of dollars of merchandise.

Gift cards — if these are replenished like any other product, make it easy on yourself and pre-count them. You don’t want to be stuck scanning/counting 10,000 gift cards on inventory night.

Warehouses/storage containers – Pre-count these the day before your inventory. This will again save plenty of time during the night.

Top-stock/Risers – either pre-count your back-stock ahead of time, or assign one or two people to count this during inventory night. I’ve always had success with a “top-stock team”.

Single Scan areas Vs. Multi Scan areas – To this day, I have managers make some pretty bad decisions on area tickets. Yes, Single scan takes a bit longer (since you have to scan each item), but your accuracy will be far greater. Obviously, your single scans will be in your soft lines (shoes, clothes) but they can have a benefit in hardline areas as well. Areas such as ammunition, fishing poles, sleeping bags and tents, and any other area where an associate may get confused (or lazy) with multiple colors and sizes.

Have a team in place as well as a plan – What area will be the most difficult? Once you figure that out, start there. The rest of the night will be a cake walk.

Warehouse shipments — make sure to suspend any warehouse shipments a day before your count. Additionally, if you do get a truck before your inventory, make certain it is not received in until after your count. If not, you could potentially see a significant loss on paper due to all that missed product sitting in the loading dock.

Use DNI markers on all that product you pre-counted. This will ensure that your counters won’t count the same product twice.

While this list is far from being all inclusive, it does give you a baseline for what you should be looking for. Often times, we get caught up in making sure our shrink isn’t too high, we forget that accuracy is as just important. For example: if you have 200 lawn chairs, but there are 5 different colors, (red, blue, yellow, green and black). Each of these chairs has its own sku, but they are all $5. If an employee scans and counts all 200 under only one sku, you will have no shrink, but your inventory counts will still be off. Your books will show 200 red chair and zero of the 4 other colors. Most likely, you’re now going to be overstocked on the additional colors. Proper inventory management starts with an accurate inventory count.

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Retail Burglar Alarm System Considerations

September 8, 2015 by Leave a Comment

240x600I thought I would provide you with information to assist you in making decisions regarding the purchase or maintenance of a security system for your property. The information provided will help cut though the “fog” of choices regarding alarm systems.

I have over 35 years of experience in both commercial and military property protection. My Bachelor’s Degree is in Industrial Security and my knowledge includes physical security, design of alarm solutions and installation. I am also a licensed alarm tech.

When selecting a security system for a commercial space, you do not have to spend a great deal of money. However, you need to be cautious of putting in a system that is so inexpensive that you are really only getting a false sense of security. If you purchase smart, you will have a good system that will last for years and provide excellent coverage at a very reasonable price.

Choosing a provider – There are so many choices that it is usually overwhelming. Ranging from large national chains to single man shops. What is the best? Well, there is no answer that fits everyone. But you should consider the following:

How reliable is the company? How long have they been in business?

With large national chains, you tend to be just a number despite their advertising claims.

With some small operations you have to be concerned, if they will be there next year.

Generally regional chains and smaller operations are going to be more attentive to your needs.

Be VERY cautious of alarm sales people. Most of the time they are focused on quota and really do not care, if you are properly protected or not. Most do not have practical knowledge of physical security, they are salesmen. Make sure you get what is best for you not for the sales person who is trying to make quota and/or selling you components that are add-ons you really do not need.

How long is the contract? 5 years is WAY too long of a term. A good contract length is 2-3 years. Remember, if they cannot hold you with good performance and service, they will tend to try to get a longer contract. Length of contract is negotiable even with large companies. Besides where will you be in 5 years? Will your company have outgrown your current space and you have to move? An assurance of “oh if you move we will move with you” may sound great but what if they have done a poor job? Do you want to continue that relationship?

Watch out for companies that have wording in their contract that automatically raise your monitoring charge usually on an annual basis. Many times it is explained away as a “cost of living” type charge. It is just an underhanded way to get more money out of you.

I will discuss equipment later in this document but keep this in mind: A trick that the large companies do, is sell you the alarm control.  But it is proprietary and THEY are the only company that can program it. This keeps you locked into them forever. No one else can monitor or service it. Insist on a NON-Proprietary alarm control.

Are they insured? Get a copy of the insurance and insist on an updated copy every year. Better yet have them list you on their policy. Is their coverage adequate for a loss due to their negligence? Keep in mind that alarm companies are NOT insurers. They will not insure your life or property losses. That is what your insurance is for. But if they make a serious error or commit Errors and Omissions (E&O), you need them to cover their mistake. Have your insurance agent review the coverage document provided to you. Do this up front. Like my Attorney says to me “Let’s get the paperwork right at the beginning because I have never seen anyone wear their wedding dress to the divorce”.

Are they licensed? Check the Secretary of States web site. Are they properly licensed for low-voltage alarms, are there complaints….?

System Design – Unless you want a lot of bells and whistles you can keep It pretty simple. Here are the key items you should have:

Alarm Control (brains of the system). See above about proprietary vs non-proprietary.

Alarm Keypad near the front door. This is how you arm and disarm the system. In my experience a keypad with an “alpha” display is best. This usually costs a bit more but instead of it displaying a zone number such as “Zone 08” it will for example say “Back Door Left”. This is much easier to deal with when there is a problem.  And there will be a problem usually late at night when you need clear information. If you also access your suite from several doors, then you want a keypad at each door for your convenience.

Door Contacts. Contact every exterior door both personnel and overhead doors whether you use them or not. They are a “hole” in your wall.

Glass Break Detectors should cover EVERY bit of your glass that is accessible. This is the most likely way a burglar will break in. Usually one glass break detector in every office with any windows will take care of it.

Motion Detectors. You should have at least one. This should be in a hallway or other area that would make it very difficult for someone to move very far without tripping it. You do not need to cover every square foot. That is overkill and not generally necessary. The exception would be, if you have very valuable supplies, equipment or other assets you need protecting. Then a motion detector covering that area is warranted.

Fire Protection is a nice thing to add. This may help reduce your insurance premiums. Keep in mind that you may be in a building that has a sprinkler system. What you should ask is that sprinkler system “monitored by a central station” or is it simply going to ring an outside bell if activated. From a fire perspective you want it monitored. However, what happens if there is a water flow in the middle of the night or on the weekend and no one discovers it until business hours? Monitoring will keep your losses in merchandise and structure more limited.

Burglary sirens are nice but do not go crazy. One siren on the inside is enough. Keep in mind that almost every keypad has a built in siren.

Automatic Testing – This is one of the most overlooked issues. If your alarm system is not checking in with the alarm companies central station on a routine basis then how would you ever know if it stops working? This happens a lot! Alarm systems are electronic and mechanical devices that do break. An electrical surge from a phone line connection or 110 Volt power happens very frequently. If your systems communications go down you may never know it. It will not show up on the keypad.

Look for a “Supervised, Weekly Timer/Test”. This is an automated signal that your alarm control is programed to send every week at the exact same time. The central station computer is watching for this signal and if it does receive it then the central station computer notifies an operator and they then notify you. This process is all automated and normally is programed to happen in the middle of the night. The central station will then notify you the next day during business hours. If you are really concerned, then you may wish to select a daily timer/test signal.

Timer/Test signals are very inexpensive to you and many companies provide a weekly one free of charge.

Notification of an Alarm – This is the call list that the central station uses to get a hold of you in the event of an emergency or a problem. They cannot help you, if they cannot reach you. Keep this list up to date. Some of the better alarm companies can send you an automated email several times a year with your current call list. This reminder helps you to keep the list current. The problem with a call list is that it is out of sight, out of mind. Without these reminders you usually do not know until there is a problem. You should also have the alarm company send you an automated e-mail whenever there is an event such as an alarm, timer/test fail, maintenance problem…. Those should also be included in your service at no charge.

Reports – Another often overlooked feature is an open/close report. Your alarm company can program your alarm control to instantly send a signal to the central station each time the system is armed or disarmed. Your system tells the central station which employee armed/disarmed and at what date/time. A summary report is sent to you once a week by e-mail. You should tell them you want an “all activity” report. This should not cost any more. That way you will also see alarms, troubles…. In addition to the opens/closes. This is much easier for you to read. Most of us only need a “log only” report. The log only version is less expensive because there is no intervention by a central station operator.

This report is a very important tool for business owners and managers. It will let you know who is coming in and when which is a good tool to assist you in tracking employee time when you are not there. It will also alert you to someone coming in after hours. Use this report as a proactive tool. If something falls outside the norm then question the employee about it. This lets them know you are aware and will help to prevent issues such as employee theft.

Alarm System Codes – Every employee should have their own code. Employees should not be allowed to share codes. Tell your employees that they are accountable for what happens with their code. If a theft or incident occurs because they gave their code to someone or someone saw the code, then they will be held accountable. Codes should never be simple such as-1234, 2468, a year, birth month/year combination, phone number…. Anything obvious. You might try using a person’s last four digits of their SSN. People tend to protect that number. Let them know that if their code is compromised for any reason, they must notify you and you will simply change it.

Transmission via cellular or internet – I personally love this feature. Most of the problems with alarm systems involve phone line issues. I think cellular is best. A cellular signal cannot be blocked due to a cut phone line or phone company trouble. Most alarm system cellular units hit at least two towers and many times three. Cellular connections are VERY fast. It is also more reliable than your voice cell service.

You can also send signals via the internet. This is nice because like cellular you eliminate a hard wired phone line and is more economical. But an internet connection is vulnerable to interruption and being cut just like a phone line.

There are a lot of other great services that your alarm company can provide you to fit your individual needs: supervised open/close reports, wireless sensors, video tied to the alarm system, remote connectivity to your alarm system via PC, tablet or smart phone and much more. This allows you to access your alarm or view video anywhere in the world. Many of these are not only convenient but critical in business and asset protection.

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DO YOU HAVE A ROBBERY POLICY?

September 8, 2015 by Leave a Comment

shoplifting6Like it or not, there exists a chance that your store will fall victim to an armed robbery. Why? It’s very simple. Your store has money inside. There are those that refuse to work for a living and will resort to a robbing innocent people like you and me. What would you do if faced with that situation? Would you, or your employees know what and how to react in order to prevent injury, or loss of life? Do you have a robbery policy in place that all employees are familiar with? If not, well, it’s time to put pen to paper.

Just within the past month, one of my stores were robbed by tow gunman during business hours. Two men walked into the store, approached the cash office with guns drawn and demanded our money; my money. Luckily, my employees did exactly what they were trained to do and the goons left before anyone was injured. Sometimes, retailers aren’t so lucky. There was a recent story on local news where the same situation occurred at another store and the owner fought back. Unfortunately, it ended in tragedy when the robbery turned into a homicide. That’s not something I ever want to go through.

If you’re created a new robbery policy, I’ll give you some points to consider. Most importantly, there is nothing in the store worth losing your life over. Nothing. Nada. Zip. Zilch. Everything inside those four walls can be replaced. You, your employees or a customer cannot be. In your policy, you should explain that. Train your employees to comply with all demands and get the thieves out of the store as quickly as possible. Most importantly, do not call 911. It’s going to be automatic for people to start pulling out cell phones. DON’T! The response time to a robbery in progress call will be hot and heavy. You don’t want the police showing up with gunmen still in the store. There could be a shootout, potentially hurting people in your store, or you could be faced with a hostage situation. Neither are great, so get them out of the store as quickly as possible. This is why you have CCTV cameras!

In your policy, you should also include an after action plan. For example, what on Earth is that manager, or supervisor on duty supposed to do after being robbed? As calmly as possible, close the store, and ask all customers to come to the front. Inform them that the store needs to close due to a police investigation, however if they would like to give a statement to police, they are more than welcome to do so. Next, move all of your other employees to a common area of the store, away from the crime scene. You’ll probably want to start counting money to see what was lost, but don’t. Remember that your store is now a crime scene and you won’t want to tamper with any potential physical evidence. The police will tell you when they are ready for you to calculate your loss.

Long term, you may want to contact your HR department if you have one, as there may be some employees, especially those who were the actual victim, who may need some counseling. Everyone reacts to these types of situations differently and it’s important that you understand that your employee has just gone through an incredibly stressful ordeal and may need time away from the store to process what happened. While a robbery may not be something that ever crosses your mind, it can happen. Having a policy in place and having your employees well trained on that policy can very well save a life one day. Remember, nothing inside those four walls is worth dying for.

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PROTECTING YOUR INVESTMENT FROM LOOTERS

September 8, 2015 by Leave a Comment

shoplifting4I watch and read the news every single day. I like to stay abreast of things that are happening in my communication, as well as issues affecting the nation. Recently, I’m a bit fed up with what I see. It’s not what’s being reported that gets me so red hot, but the reactions of called “protesters” to perceived injustices. I will never understand how a protest against something can turn into a riot and spur mass looting.

Look at the recent cases of civil unrest in cities across the country and you’ll see one commonality. “Peaceful” protestors, that almost always evolve into gangs of thugs who choose to loot and destroy businesses. You see the cities on the nightly lights. You watch in horror as lawless bandits bust out shop windows and even see those walking down the street with big screen televisions sets, and even some cases, setting stores ablaze, for no practical reason at all. More disturbing to me is that the majority of these stores affected are small businesses, like yours.
So is there anything you can do to prevent your business from falling victim to this? Yes, Absolutely there is. Take a look at some ways to harden your building and make it difficult for not only looters, but the average burglar, or robber, to damage your store.
First and foremost, if you don’t already have a CCTV system installed, get one. I’m serious. Unfortunately, this is no longer a luxury, or a good idea. This is a necessity. A good system will only run you a few hundred bucks and I will personally guarantee that it will pay for itself over, and over and over again. There is not greater piece of evidence in a court of law than video of a crime being committed. Eyewitnesses get details wrong; a camera doesn’t lie.
Second, take a look at the exterior of your building. Do you have glass windows or doors? If you really want to protect your store, you should invest in a good roll-down type door. Not only are some of these virtually impenetrable to a person, they can be great for when Mother Nature rears her ugly head. At the first sign of trouble, a flip of a switch can all but guarantee the safety of your store. Additionally, lots of stores have concrete bollards in the front to prevent an automobile from driving through the front doors. Whether it be an accident, a “smash and grab robbery,” or during a looting incident, a good bollard can stop a car dead in its tracks.
Now those are some great ideas to the more common ways our businesses are impacted. Lots of store owners often overlook one very simple, but very important piece. Data. Chance are, in your store, you have an office. In that office is a computer with all sorts of proprietary information. Whether it be salary information, employee records, sales and financial data, or your customer’s information, you have an obligation to keep that secure. If I walked into your store right now and stole every computer and every hard-drive in sight, what would happen? If you aren’t backing up your data somewhere off-site, you could be in a world of trouble should this happen to you. I recommend to anyone, to always back up any data to a place that isn’t in your store. There are several hundreds of reputable and safe companies that can handle this for a very small fee. Trust me, it’s worth every penny.
While the very likelihood of your business falling victim to looting is slim, it can happen. You should be prepared for anything that may come your way. In the blink of an eye, your city and your street could be playing host to violence and destruction. You should always be prepared to protect yourself, your employees and the future of your business. Don’t let some gang of bandits bankrupt your business.

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PROSECUTING EMPLOYEE THEFT

September 8, 2015 by Leave a Comment

theft (2)If you employ people, I can guarantee that one of them, at some point during their employment, will steal from you. It could be some office supplies, or perhaps a few reams of paper; or more commonly, money, or even your merchandise. We trust our employees from the time they are hired and throughout their tenure. Employees know our stores in and out. They know our strengths and more importantly, our weaknesses. This knowledge often leads the employee down the path of dishonesty. I’ve investigated hundreds of employee theft cases and nearly all of these employees say the same thing when they are interviewed. They say they stole because it was easy, or they had no fear of repercussions if they were caught, other than maybe just losing their jobs.

Personally, I don’t care if it’s a $3,000 watch, or a $1.50 bag of potato chips. If I have evidence that an employee willfully and purposefully has stolen from me, I’m going to terminated that employee and refer the matter to local law enforcement for prosecution. It doesn’t matter if that employee is an old man, young woman, or any color of the rainbow; everyone will get the same treatment. In my stores, it is very important that I create a deep understanding with my staff that there is a zero tolerance policy towards theft. You would be wise to do the same.

A few years ago, I came across an employee that had taken a couple of consumable items. It wasn’t much, probably under $10, but they knew they were stealing from me and did it anyway. After obtaining a written confession, I terminated that employee for theft. Due to the dollar amount being so low, I did not contact the police. Not long after, at this very same store, another employee was terminated after an investigation showed they had stolen over $10k in cash. This employee happened to be a different race and sex than that previous employee. Not long after that termination, my store received a lawsuit for wrongful termination. That employee claimed I prosecuted him based on his race and sex, and I let another employee, who was of a different race get off without being arrested. It was a long hard fight to prove our case (which we ultimately won), but it was a great lesson for me to learn. From that day, I adopted my “everyone who steals goes to jail policy”. It’s served me well ever since.

In addition to protecting yourself from employment related liabilities (like the one described above), prosecuting employees caught with their hands in the cookie jar serves one other great purpose. It’s a deterrent. It’s a huge deterrent to other employees who be entertaining the same idea. If Susie Q and I are both cash office employees and I see her get escorted from the store in silver bracelets after she stole a few hundred bucks, chances are, I’m never going to do the same. If your employees know that the consequence of stealing is always going to be jail, from day one, they are less likely to steal from you. If and when they do, you’ll be ready to set the example for the rest of your staff.

I know for some of you out there, making the decision to prosecute an employee, maybe even one of your most loyal and trustworthy employees, is a very emotional thing to go through. You may feel like you want to cut them a break and simply have them pay you back. I’m telling you from experience, that is not enough. They will eventually steal again. Moreover, your other employees will see how easy it is to get away with theft and may do the same thing. The way in which you react to catching an employee stealing should be exactly like how you get out of a bad relationship. Sever all ties, put your emotions aside and do what’s best for your financial future.

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Real Time Anti-Shoplifting App For Your Mobile Devices

August 8, 2015 by Leave a Comment

LPSI EVOLVE-Store Mobile AppWhen I look at the Electronic Article Surveillance (EAS) marketplace there are two very distinct offerings: Checkpoint Systems and the “other guys”. I realize that this is a bold and maybe arrogant statement. Despite the fact that we are the largest nationwide Checkpoint Dealer for the small to medium size retailer in The United States and yes, I do favor Checkpoint Systems, it really is a true statement.

I wish I could take you on an inside tour of Checkpoint’s facilities from R&D to Manufacturing to Support to Service and everything in between. What you would learn is that there really is only Checkpoint Systems and the “ring the bell, light the light” crowd. Checkpoint Systems is so far advanced beyond the other guys, it is mind boggling.

So now Checkpoint has moved the EAS industry further again. EVOLVE-Store puts your Checkpoint Systems in your mobile device. An app delivers real-time information through a smartphone or tablet, providing real-time visibility and engagement with your EAS & ORC theft prevention systems.

The EVOLVE-Store app will also help to improve your consumer conversion rates through real-time visibility of the number of shoppers in your store and measures your policy compliance by managing response times to alarm events.LPSI EVOLVE-Store Mobile App 2

Combine this with Checkpoint Systems VisiPlus which is retail people counting at its best and you have a substantial retail theft management system available to you regardless of where you are. Seeing theft-related events that are affecting your store in real time gives you an edge.

I have been a retailer in the loss prevention world for over 30 years. I have personally apprehended hundreds of shoplifters, investigated over 2300 retail employees for theft, built and directed the Loss Prevention program for several major retailers. But I have never seen such significant advances in such a short period of time in the loss prevention field. But what make Checkpoint Systems so different is that all of this is not just designed for the major retailer. EVOLVE-Store is an affordable program for the small single store and medium sized retailer.

If you are interested in learning more about Evolve-Store and Checkpoint Systems EAS, please contact me, Bill Bregar at 1-770-426-0547.

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TIPS TO PREVENT SHOPLIFTING

August 8, 2015 by Leave a Comment

shoplifting1I’m constantly asked on ways to prevent, or stop shoplifting by store employees and managers. They see the empty packages every day and some of them are just tired of dealing with the problem. I have some managers that think by increasing the LP headcount will make a difference, while others want to lock everything up behind glass. How do you prevent shoplifters from targeting your store? Do you lock everything up and use the newest EAS devices to battle the growing shoplifting problem? What if I told you that while EAS devices are a great resource, you can implement several programs in your store that wouldn’t cost you a single penny? Interested yet?

First and most importantly, you have to build an awareness culture in the store. You employees need to be engaged and pay attention to what’s happening around them. Look at your store tomorrow. Are you team members being unproductive, are they failing to greet and assist your customers, are they task oriented? You’re probably going to answer yes to each of those questions and that’s OK. Those are all behaviors that can be addressed and corrected. How do you make them care?

It starts at the top. From the store manager on down, there needs to be clear expectations set in terms of customer service and store standards. Employees that don’t meet these expectations should be weeded out. Customer service is the greatest tool you have. If a customer knows that they can’t walk 10 feet before being assisted by your store, they will most likely return to your store. Likewise, a thief isn’t going to want that much attention and it will drive them away.

Second, start discussing shrink and loss prevention at every store meeting, morning meeting and department meeting. Give your team the knowledge of what is being lost and when. Discuss the top 5 stolen items for the month and the top shrinking department. Talk about known shoplifters and any specific products that are being targeted. This is also a great time for department employees to share new “hot” items that the rest of the store should be aware of.

Third, have a “LP communication station”. In my store, I have a large message board in the break-room. Here, I display the month/week shrink numbers, highest shrink department and top shrink skus. I also include different shrink topics each week so the team members can always gain some knowledge. I also feature an employee each week that has done something that positively impacted shrink. Maybe it was a cashier that caught a price switch, or maybe a sales team member that deterred a shoplifter. It’s a great place to recognize their behavior so they constantly strive to continue their actions to get “featured” again.

Lastly, you need to have a good cashier training program. So much fraud happens on the front end, it’s almost unbelievable. You have customers stuffing merchandise, altering prices, using fake credit cards, phony checks, counterfeit currency, hiding product under baskets, quick change artists and the list can go on and on. A well trained cashier team is your last line of defense against fraud. I constantly hold training sessions with my cashier team. It doesn’t matter if they’ve been with me for one week, or three years. There is always something they can learn to be more aware of how losses occur at their registers. Personally, I hold a contest each month with my cashiers to see who can catch the most amount of theft/fraud. You’d be surprised the results you can get if you offer up a free meal☺.

The greatest part of all of this is that it’s completely free. You can spend thousands of dollars on a camera system, EAS devices and/or a dedicated LP team in your store and still not see the same results as you would by just implementing some of these steps. There is absolutely no substitute for a well-trained and focused employee to prevent theft.

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