Loss Prevention Security Efforts

 

 

Who’s minding the store when the owner/manager isn’t?  A growing number of concerned management leaders depend on mystery shoppers as part of a comprehensive  loss prevention security program.

 

What information will be gained from a mystery shopper’s report?  Most users of a shopping service look first at the customer service category to learn the perception of their clientele has of their business.  Does the customer feel they have received enough attention and are more than their minimum needs being fulfilled by the staff?

 

But shopping reports can go beyond that and be important to the  loss prevention security  area as well.

 

A customer who is promptly greeted is not as likely to shoplift if eye contact has been made by an associate, making them feel that they have been noticed.  Frequent attention to each customer also lessens the likelihood of theft.  Attention not only deters theft, it also makes the legitimate customer feel more appreciated.

 

A trained shopper will also notice transactions occurring at the register and note any irregularities.  Shops may be general in nature or target specific employees, and controlled purchases, or correct change transactions may be conducted ensure the transaction was recorded properly.

 

Many business owners have a false sense of security in believing that all employees behave as if the owner or manager were looking over their shoulders while they work, and this is hardly ever the case.  A well planned mystery shopping program can improve the   loss prevention security  program of almost any retail business.

 

For information go to:   loss prevention security 

What is involved in installing a clothing alarm?

What is involved in the installation of a clothing alarm?  Well first we should review what the components are.

The primary compnents are antennas at entry and exit points, inside the store.  They are usually about a foot and a half front to back, 5 feet tall or so and a couple inches thick.

These antennas will pick up tags that are either, hard tags or labels.  Checkpoint security systems (pictured above) uses a radio frequency technology.  The tags vibrate at a specific frequency that is picked up by the antennas when they get in range.  This will set off the alarm notifying everyone there is an issue with merchandise heading out the door.

Go to Checkpoint  security tags to learn more about both hard tags and labels.

The Checkpoint tags that are hard tags are removable with a special device that is attached at the cash register.  The labels are deactivated when processed through checkout via an under counter deactivation pad.  Unlike other systems that require direct contact of product rubbing on the deactivation pad, Checkpoint Security Systems tags will deactivate within a 12 to 17″ field above the counter.  This is because it is not a magnetic system.  Magnetic systems are the older technology which can damage credit cards and cell phones.

Installing a  clothing alarm will deter would be shoplifters from entering your store and they will simply move on to another location that is unprotected.

Visit Loss Prevention Systems to learn more.

Sources of inventory shrinkage in retail

The University of Florida publishes an annual retail loss report that is considered to be the ultimate reference in the loss prevention industry.  They have identified five areas of inventory shrinkage/ losses which are: Administrative errors, Vendor Fraud, Unknown, Shoplifting and Employee theft.

Surprising to many at first is that employee theft is the primary source of retail loss.  Vendor fraud is mostly not even on a retailer’s radar but can account for 3 to 5 percent of annual losses.

Shoplifting is usually what comes to mind first when you mention retail loss.  This accounts for  around 35% of total retail shrinkage. 

One complication in calculating and categorizing these losses is that an unknown portion involves employees collaborating with shoppers and or outsiders.  This is called “sweet hearting”.  The employee running the cash register simply does not ring all items, or carries bar codes of inexpensive items and rings them instead of what is actually brought to the register. 

This bleeds into organized retail crime to a degree as well.  Organized retail crime is on the rise and is a serious threat especially to understaffed retailers.  A group or team will enter the store, one or more creates a distraction while others clean house.  The distraction can get very creative… everything from a scantily clothed female that strips to a false trip and fall. 

If you are suffering from retail loss and want help, contact Loss Prevention Systems today.

 

Are You Experiencing Retail Shrinkage?

Are You Experiencing Retail Shrinkage?

Retail Shrinkage or “shrink” is the difference between what the book inventory and the physical inventory show. This rarely “0” it is normally over or short.

Shortages are usually made up of the one or several of the following loss areas: employee theft, shoplifting, vendor fraud, paperwork errors or improper store-to-store transfers.  According to the University of Florida Retail Study that has been done for many years now the areas of theft generally rank:

Employee theft 48%
Shoplifting 32%
Administrative Error 15%
Vendor Fraud 5%

These percents change very little from year to year. The lesson is that employee theft ranks very high in retail shrinkage. It is always the largest area of loss to a retailer. The basic reason for this is that employees and managers have unlimited access to merchandise and cash. Many smaller retailers do not want to believe this and the excuse that we at Loss Prevention Systems usually hear is “I trust my employees”.

We have one response to this: “Trust But Verify”. Many retailers (large and small companies) use personal trust in place of business trust. Business trust involves trust but verify. If you are using personal trust in a business environment you are asking for trouble.

Want more information: Retail Shrinkage or call 1.770.426.0547

Shoplifting Facts For Retailers

More than 60% of shoplifters steal from the same store because they got away with it and the store culture made them feel comfortable. It makes sense. If we create an environment that makes the shoplifter relaxed enough to continue they will also tell their friends. Your store is or will become a magnet to shoplifters.

Once caught, very few shoplifters will return to the same store to make another attempt. The key to prevent shoplifting is to first deter. If that does not work make them feel uncomfortable once they do pick up an item and attempt to conceal it or catch them. A Checkpoint anti shoplifting system covers that at all three levels, deterrence, attempt and catching the shoplifter.

Habitual shoplifters, after being apprehended, will return to the same store when no Electronic Article Surveillance (EAS) system is in place because the chance of being caught a second time is only 2%.Shoplifters want your merchandise whether to keep or sell. The goal is to make them uncomfortable enough or shut them down completely. This will send them down the street to another retailer that is not proactive or even trying to prevent shoplifting. That reputation will also spread among shoplifters.

For additional information:  prevent shoplifting or call 1.770.426.0547

Physical Security

Retail Loss Prevention Physical Security

  • A well-lighted area deters shoplifting, stores must maintain adequate lighting. Shoplifters tend to gravitate towards darker, less traveled more concealed areas such as corners to conceal the merchandise they are going to steal.
  • Limit customer exits. Loss prevention security starts at the door. It takes to many employees to keep an eye on multiple exits. Most large retailers know this and do have only one entrance and exit. Close off or make any unused door an emergency exit.
  • Keep displays and shelving low enough to be seen over by employees. A key in retail loss prevention is training and empowering your employees to be your eyes and ears in loss prevention. Make sure they can see every where possible in the course of their normal duties. Teach them how to approach any suspicious customers.

Special loss prevention security measures should be followed if there is an emergency and the power goes off:

  • Station an employee at the front door.
  • Make sure you have flashlights ready for this purpose. Test them monthly.
  • Have a procedure for ringing up sales without the POS. The power is out. Do your cashiers know how to use a calculator? Do you have a battery operated calculator available at each POS? Do cashiers know how to calculate tax? Do they know what the tax rate is?

Retail loss prevention security keeps your profits up and losses down.

Need more information?  retail loss prevention or call 1.770.426.0547

Loss Prevention Systems,Inc

Electronic Article Surveillance

Electronic Article Surveillance (EAS) equipment is used to provide security and loss prevention to merchandise. However EAS is not a total solution to the shoplifting problem and will not stop shoplifting on its own. Points to consider when using EAS as a loss prevention tool include:

Certain tags can be identified by shoplifters and removed. Concealment is critical. Labels can be disguised and tags can be made extra secure depending on how and where they are attached.

Tagging merchandise costs in both tags and labor can be cost prohibitive if you attempt to tag and label all merchandise. Consider establishing a price point and up that are to be tagged. Of course you also want to tag or label any merchandise that is high theft.

Properly maintained systems and tags can be a major support to employee customer service when the ratio of customers to employees is high.

In the security and loss prevention field we know that the presence of tagging systems themselves can be a deterrent to many types of shoplifters.

Dye tags can be used on soft goods for product denial.

Want more information: security and loss prevention or call 1.770.426.0547

Checkpoint Tag and Label Offerings

Checkpoint’s broad range of tag and label offerings gives retailers more options to prevent shoplifting than any other Electronic Article Surveillance (EAS) technology. The reason is that all of Checkpoint’s tags and labels are radio frequency-based, allowing retailers to protect apparel with reusable hard tags, flex tags or designer tags while using disposable labels for all other merchandise. Checkpoint sensors will detect any Checkpoint RF tag or label – reusable and disposable.

Checkpoint’s disposable EAS tags and labels provide retailers with a versatile and wide selection. Available in a range of sizes, Checkpoint’s paper-thin RF labels prevent shoplifting by protecting all types of merchandise found in drugstores, supermarkets, mass merchandiser, apparel stores, liquor stores, hardware stores and sporting goods stores. All of Loss Prevention Systems’ Checkpoint disposable tags and labels are deactivatable without having to be found or touched during checkout like AM systems.

For more information:  prevent shoplifting or call 1.770.426.0547

  

Prevent Shoplifting with Clothing Security

Can you prevent shoplifting with security tags on clothes?

The professional shoplifter is only 3% of the total number of shoplifters and accounts for 10% of dollar losses.

The casual shoplifter accounts for 70% of the shoplifting population but 5% of the dollars lost.

The Habitual, non-professional shoplifters accounts for 27% of shoplifting but is responsible for 85% of the dollars stolen.

Studies conducted show that when a habitual shoplifter encounters a clothing security device like a Checkpoint tag, 76% will not attempt to steal that item.

A simple calculation of losses will most likely reflect that even a 40% reduction in shoplifting loss will result in a large amount of money to the bottom line. Take clothing security seriously by preventing shoplifting in the first place.

Put Checkpoint security tags on clothes, prevent shoplifting and increase your profits by reducing your losses.

The effort to prevent shoplifting represents a minor investment.

Loss Prevention Systems is your solution to prevent shoplifting.

For more information: prevent shoplifting or 1.770.426.0547

Proactive Theft Prevention

Retail loss prevention experts agree, and endless studies and industry surveys confirm, that a large portion of shrink – unexplained inventory losses – as well as cash shortages are caused by employee theft.

The question retailers suffering from employee theft might ask themselves is this: Did I employ a thief or did my policies and procedures encourage a formerly honest person to steal?

An employer can’t know what is in the mind of a potential employee.  But he is able to check into the employee’s past to determine if there is a history of involvement in property crimes like theft, or crimes of violence such as assault and/or battery through a thorough background investigation.  The past of an applicant can be revealed by a criminal history check in the jurisdiction where the applicant lives through an examination of public records relating to arrests, convictions, and sentences handed down by the local courts.  Although a past record is not an absolute indicator of future behavior, it can be argued that a person with several arrests for similar crimes can be expected to revert to that behavior at some time.

A person’s history of drug or alcohol abuse might also be revealed and considered.

If your employees have access to your property and cash, or have contact with the public, a background investigation can reduce your losses as well as your liability for an employee’s actions.

It makes sense to start with an honest employee.

For more information, go to:  Background Screening