Preventing and reducing shoplifting losses means companies can increase their profitability and invest in research and development or acquire better technology for their businesses. Losses mean the company has to cut on other areas, and hinder their ability to be profitable and cutting edge. Businesses have to deal with dishonesty from their employees as well. Is that something that concerns you as a business owner? Read the following articles to find more about retail software analytics, retailers return fraud, and the safety measures police departments are taking to provide safety to retails shoppers.
Retailers Raise Concerns About Continued Return Fraud
A recent survey by the National Retail Federation found fraudulent returns are expected to add up to a nearly $9 billion problem for the industry last year—with pressure ratcheting up during the holiday season.
With the holidays over, it’s likely that a few gifts might get sent back to the store. (Nothing personal; it just didn’t fit, Grandpa.)
While these kinds of returns are par for the course for many retail outlets, the National Retail Federation (NRF) is sounding the alarm about the dangers of return fraud. The association’s recent Return Fraud Survey projected that the practice cost the retail industry almost $3.4 billion during the 2013 holiday season. More details:
A widespread problem: Like credit-card fraud, which has drawn much attention in the wake of the Target incident last month, return fraud is something nearly all retailers have dealt with in some form, according to the NRF survey. The most common form, according to the retail loss-prevention executives polled, is the return of stolen merchandise: 94.8 percent of respondents say that their company dealt with such cases in 2013. Other common forms include return fraud involving employees (93.1 percent); returns of items purchased with fraudulent funding sources (69 percent); “wardrobing,” the return of already-used merchandise or clothing (62.1 percent); and retail fraud by organized crime groups (60.3 percent). While overall fraudulent returns were projected to see a relatively modest $50 million decline from 2012 figures, the amount for the holiday season alone was expected to increase by about that much.
Compass Group Canada Reduces Shrinkage by Using the Lavastorm Analytics Engine to Uncover and Monitor Metrics and Patterns Correlated to Theft and Policy Breaches.
Lavastorm Analytics, a leading global analytics software company, announced today that Compass Group Canada, its country’s leading food service and support services company, which owns and operates 2,300 retail locations for nationally known brands, including Quiznos, Starbucks, Subway, Tim Horton’s and Pizza Pizza, as well as hospitals, schools and stadiums across Canada, has chosen the Lavastorm Analytics Engine to improve the accuracy and impact of its retail loss prevention program.
By using Lavastorm Analytics Engine, a powerful, visual and versatile analytic development environment and a key element of the Lavastorm Analytics Platform, Compass Group Canada has been able to uncover metrics and patterns that are reliable indicators of theft and to spot anomalies, which would previously have gone unnoticed, in the massive amount of point-of-sale (POS) data collected by its high-tech cash registers. In initial use, the system has been 100 percent accurate in identifying situations where theft or policy breaches were taking place.
With retailers suffering an average loss due to shrinkage of two percent of sales per year, Compass Group Canada, which had $1.5 billion in revenues in 2012, makes managing shrink a continual priority.
Beefed up holiday patrol deemed a success
Victorville station uses grant money for more retail enforcement.
Utilizing funds from a grant, the San Bernardino County Sheriff’s Victorville Station increased the number of patrol deputies in retail areas for a safer holiday season, officials said.
“We wanted to give residents a feeling of safety and confidence over the holiday season,” Sgt. Ken Lutz said. “A review of our efforts show it was very successful.”
From Nov. 29 through Dec. 31, officers from the Retail Theft Team, made up of six to eight members, were deployed in areas including the Mall of Victor Valley, Wal-Mart, Target, Best Buy, Kohl’s and Winco, Lutz said.
The Retail Theft Team utilized marked and unmarked cars, uniformed and plainclothes deputies, depending on the operation, Lutz said.
Money for the holiday enforcement was made possible by a Justice Assistance Grant. During the targeted time period, 112 reports were written and 135 arrests were made for various retail crimes, which could possibly lead to future arrests, officials reported.
Lutz said deputies worked in cooperation with retail loss prevention officers for faster response times to calls for service and fewer vehicle burglaries in and around retail areas due to the increased law enforcement presence.
“On Black Friday (Nov. 29) we had one vehicle burglary reported,” Lutz said. “The results of the holiday enforcement period are very encouraging.”
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