How Do You Handle Returns, Refunds, Voids: Is It Easy For Someone To Steal Money? Now Is A Good Time To Review Your Procedures.

January 31, 2017 by Leave a Comment

If you were asked what area of your store would present the most opportunity for employee theft and fraud, what would you answer? The checkout lanes where cashiers have access to the register, the ability to pass merchandise,  or steal gift cards and credit cards? At the register cashiers also have access to electronic article surveillance (EAS) detachment tools and deactivation pads. It is easy enough for them to “unprotect” merchandise and walk it out of the store undetected. Perhaps the sales floor, where employees can take merchandise and conceal it  in the boxes of other merchandise then return and purchase it later (box stuffing)? On the sales floor they have the ability to conceal merchandise under clothing or wear clothing belonging to the store and walk out during a “break” without paying for it.  Maybe the stockroom staff has the most opportunity to steal since they generally have little direct supervision and have plenty of hiding spaces to conceal empty packages if they take something not protected with EAS tags or devices. One area that could be overlooked and can be a source of a significant amount of undetected theft and fraud is the return desk.

     What can happen at the return desk that makes it a vulnerable point for employee theft? Cash theft, merchandise theft, return fraud, gift card fraud or any combination of these can take place here.  When a customer returns merchandise with a receipt is the cashier giving the original receipt back to the customer along with the new receipt?  What do you do with items that have been returned? Is there a central location for keeping returns until they can be processed? Is there a procedure in place for getting returned merchandise protected with electronic article surveillance tags and anti-theft devices shortly after the return takes place? If you haven’t thought about the ramifications of not having adequate procedures in place, then this list will provide you with some reasons evaluate your processes and options for improving controls:

  • If a return is done, the item returned should be circled on the original receipt and the slip for the completed return attached and handed back to the customer. Return desk employees who keep receipts may be fraudulently refunding other items from the receipt that were not really returned. They then remove that amount of cash from the register and keep it.
  • Do you audit the merchandise at the return desk? You should be able to review each item and verify it was returned and when. You could find that a dishonest employee is stealing returned merchandise that was not damaged. If there is no auditing, there is little chance the employee will be caught engaging in theft.
  • If a piece of merchandise is returned and the same item is protected with an anti-theft device on the sales floor, is that merchandise being processed and secured right away? Failing to immediately secure merchandise with EAS protection could be an indicator an employee intends to steal it.
  • Is the service desk area neat, organized and set up so everything has a place? Or is the return area cluttered and unorganized with random merchandise laying all over the counters, in storage bins and on the floor? If so, there is greater opportunity for employees to hide merchandise they would like to steal. If there is no organization it becomes very difficult to determine what should be behind the desk and what shouldn’t be.
  • Do you monitor for excessive line voids from your cashiers, including the return desk associate? Employees who void multiple items during sales transactions may be passing merchandise to friends or family members.
  • Inspect boxed and packaged merchandise returns. Open the package to be sure the proper merchandise is inside. Some thieves will put in the wrong item to defraud the store. Also look at shrink wrapped merchandise being returned. There are criminals that will take the time to change out the merchandise in the box for a rock or item with a similar weight and then shrink wrap the package. It looks like it was not opened, but often a close inspection will reveal an edge or a corner that does not appear to be manufacturer issued…open it up!
  • Are return desk employees assigned their own register till? Multiple cashiers working on a register makes it difficult to identify the source of a cash shortage.

The return desk can be a tricky area to control and can be the location where shortage, theft and fraud can run rampant. Take the time to review your procedures and be sure you are doing all you can to deter criminal activity.

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Look At Your Policies, Cash Flow, Deposits, Cash Drawers. Are You Setting Yourself Up For Theft? Either By A shoplifter Or An Employee?

January 31, 2017 by Leave a Comment

What policies do you have in place concerning cash handling, deposits, cash flow and preventing theft by a shoplifter or employee? If you have policies when did you last review them? If you don’t have set procedures and policies you are putting your store at risk for theft and potential robbery. Below are a few suggestions that can be used to create policies or strengthen polices already in place.

CASH FLOW

Starting with your cash office, there are things your cash counter, managers/supervisors and you can do to maintain cash flow integrity. At the start of the day the cash office employee should set up your money bags for registers with a set starting amount for each one. A manager should put the money in the tills and verify the tills are correct. I prefer money bags be used to move cash from the cash office to the registers with each bag being numbered to match a corresponding register. Some locations have the cash counter set up the tills and the tills are carried to the check-lanes. A rolling cash cart with a drop slot and locking door can be used to move the money bags to and from the cash office keeping cash secure. When a cashier is done for the day the money from their register can be placed in a money bag and dropped into the cart and rolled back to the cash office by a front end supervisor. A log should be kept requiring each person entering the cash office to write the time they entered, the date and their name and the time they exit. Money should always be locked in a safe and never left out on a counter in the cash office.

DEPOSITS

     Deposits can be done in one of two ways. Some small stores have a manager take deposits to the bank or get change from the bank when the need arises. The second method is to contract with an armored car company to pick up deposits and bring change orders. This is the safest method and my recommended method for deposits. However, it is an expense and may not be in the budget for a small business. IF your managers are making the deposits, there are several safety precautions to take. NEVER go at the same time of day, it establishes a pattern for a criminal who may be looking for an opportunity to rob the manager. Likewise, NEVER take the same route to the bank every time, change up the direction even if there are only a couple of ways to get there. Always have someone watch the manager from the exit doors as the manager walks to their car and be ready with a cell phone to call 911 if a robbery takes place.

CASH DRAWERS

    Train cashiers to never allow a customer to reach over the counter and get near the register drawer. IF someone reaches towards the drawer the register should be shut. Registers should be closed immediately following a transaction. If a cashier is sorting through the money or “straightening” they could be slipping money out and pocketing it or dropping money, then putting it in their pocket. Don’t “exchange” bills for patrons, there are some shoplifters who also engage in short changing and confusing cashiers and steal money using this method. Others will argue they did not get the right amount of change and start reaching in the till. If there is a dispute over change a manager needs to conduct a till audit with a partner, in the cash office. If there are enough registers in the store, limit one cashier to one register, when the cashier is done for the day, their money goes in their bag with a supervisor present and the supervisor drops it in the cash cart and rolls it to the cash office. Keep large bills under the till, if they are on top they are easy to see and easier for a grab and run. Consider purchasing locking till covers for registers that have money in them but are not currently in use. There are traveling shoplifting rings and till tap rings that have register keys and will open drawers if no one is paying attention. Till covers prevent someone from getting to the cash even if they open the drawer. Finally, when a register has too many large bills or excessive amounts of money, do a skim and take the excess to the cash office.

Cash handling policies can make your business safer and more profitable. Establish them and then periodically review them to ensure they are being followed.

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Protecting Your Business From Theft…Are You Doing Enough?

January 25, 2017 by Leave a Comment

The retail industry has been facing many changes for the last few years.  And although the nay sayers believe Amazon will eventually destroyed the retail industry, some experts believe the retail shops are  here to stay.

The issues that are affecting the retail industry are numerous though. Shoplifting and employee theft are costing the industry millions of dollars every day. Under-staffed stores, poor customer service and poorly trained employees, are bigger issues for the retail industry than Amazon is.

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

Are shoplifters getting it too easy?

Shoppers blissfully ignored a sign that only four garments could be taken into a department store dressing room. With armfuls of clothes and bags from other stores, customers entered and exited the fitting area, without supervision. It was a shoplifter’s paradise.

Two shop attendants frantically organised returns and refunds in a holiday-sale blur. Nobody enforced the dressing room policy, which is designed to reduce shoplifting risks, or watched customers to ensure goods were returned.

Whatever happened to department stores having a specialist assistant who manages the fitting rooms and is paid out of the security budget?

Visible signs of extra security – or much security at all, for that matter – were hard to find at this store. The main exit did not have a uniformed security guard. The handful of staff on the floor made no obvious effort to watch for thieves.

Protect your profits

Garden center owners share their stories of recovery and new strategies after thefts and break-ins. J.R. Pandy, a retailer in Ohio, explains how he’s continuing to fight for his business.

For as long as J.R. Pandy can remember, he’s been involved with the day-to-day operations of Pandy’s Garden Center in Elyria, Ohio, a business his parents founded around 1961.

“I think I was born here,” Pandy says of the grower/retailer he’s worked at since he was 12 years old.

Unfortunately, Pandy can also scarcely remember a time his family business wasn’t victimized by burglars, thieves, arsonists and other intruders and criminals. He says the garden center has been broken into and stolen from so many times throughout the years that the individual incidents tend to run together.

“I can’t even fathom to count that many times,” Pandy says. “It’s just an old hat — ‘Hey, we’ve been broken into, oh, great.’”

One of the most costly and recent burglaries at Pandy’s Garden Center came in May of 2015, when thieves entered the store grounds at night and made off with tools, trees, bulbs and other green goods. The thieves even took the store’s van, which was hotwired and driven off the premises.

Are You Doing Enough to Secure Your Stores?

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

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

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

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

 

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Is Your Store Protected From Employee Theft and Shoplifters?

January 18, 2017 by Leave a Comment

According to the National association for Shoplifting Prevention (NASP) shoplifting cost the United States more than $35 million per day.  There are more than half a million incidents concerning shoplifting every day, and the issue does not seem to be abating.  Security systems across the United States seem to be implemented in every retail store you encounter, but the problem of employee theft and shoplifting are very much huge issues with no solutions. Is it misinformation the issue?  Do your  employees know you will prosecute if caught stealing? Is it poor personnel training the issue? Here are three articles with information to prevent your business becoming a heaven for shoplifters and employee theft.

6 Security Lessons for Preventing Employee Theft of High-Value Property

How do you stop employee theft of high-value assets?

The harm from employee theft grows as the value of property increases. For example, the FBI says a vice president of product development at Tiffany & Co. systematically stole $1.3 million worth of jewelry from the company, checking out jewelry to show to potential buyers or for other marketing purposes and never returning the items.

That case pales in comparison with a theft that came to light in 2009. A vault manager at Jacmel Jewelry in Queens, NY, stole $12 million in gold over six years—500 pounds worth, one piece at a time—by hiding it in the lining of her pocketbook.

To the extent possible, it’s good to keep high-value assets and critical material separate from employees, but that’s not always practical. In casinos, for example, line workers need access to huge chunks of cash. In such situations, what security measures are effective for preventing employee theft? It’s a complicated issue that demands the evaluation of a range of issues, including:

  • how employees are screened and monitored;
  • how materials are accounted for;
  • how investigations are conducted;
  • how staff is trained and motivated; and
  • how security is tested, assessed, and improved.

Are You Doing Enough to Secure Your Stores?

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

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

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

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

Arden Fair Mall Store Employees Accused Of Stealing Thousands From Registers

​SACRAMENTO (CBS13) — Two alleged Christmas-time criminals are under arrest after each was caught stealing thousands of dollars from their own employer’s cash registers at the Arden Fair Mall.

Cops arrested Sears employee Rowan Chan for stealing $2,700 from his job, and Macy’s employee Imani Randle for stealing $7,700 from her job.

Both were booked within hours of each other.

A Sacramento Police spokesperson says each retail employee was in charge of a store register and in both cases, put company cash on their own debit and credit cards for weeks by ringing up fake returns.

“Basically we call it phantom returns,” Security expert Terry Brown said.

Brown owns Armor Bearer Protective Services. He says Christmas time is a busy time for store security, monitoring their own employees, and phantom returns are an old trick.

 

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Shoplifting Penalties, Preventing shoplifting, and Background Screening

January 13, 2017 by Leave a Comment

How was 2016 for you?  Was it a winning year or one full of loses?  Were the personnel helping you during the holidays everything you expected?  Many businesses forgo the employee screening process due to the cost associated with it, not knowing the cost is only a fraction of what a bad employee would cost them in a very short period of time.  Read more by following the links below.

Changes in Shoplifting Penalties Make It Tougher for Retailers

Retail shoplifting penalties are undergoing changes. They aren’t all good.

Most readers of the LPM Insider are probably pretty familiar with shoplifting, its definition, its negative impact on retail operations and profitability and the shoplifting penalties for their state. It would be a lengthy process to learn the laws of every state and their shoplifting penalties because of the vast differences and constant change. Shoplifting laws have changed significantly in recent years—but rarely to the benefit of the retail industry.

Shoplifting and petty theft are criminal offenses that are frequently thought of as interchangeable, as they share common elements. Each crime requires the perpetrator to take something valued at or below a certain dollar amount, with the intent to permanently keep it, usually constituting a misdemeanor crime. The taking of something valued over that predetermined amount (as described by law) constitutes grand theft, which is a felony. State laws vary on the cutoff between petty theft and grand theft, and the shoplifting penalties assigned to those crimes vary by the amount stolen and by state. But, in general, to qualify for petty or grand theft, certain criteria must apply:

  • The victim of the crime had a “possessory interest” in the stolen item
  • The property was “taken away”
  • The victim did not agree to the taking

The defendant intended to permanently deprive the victim of their interest in the property.

Businesses rally to prevent shoplifting

Tucson, AZ — Serial shoplifters cost business owners in Pima County $5.91 million a year. On Wednesday, the Pima County Attorney, law enforcement, and local retailers partnered together for the new “We Watch, We Prosecute” campaign to stop thieves.

2016 was the first year ever that 100% of retailers say they were victims of organized retail theft, according to a study by the National Retail Federation.

Police say 80% of organized shoplifters steal because of drug addiction.

The Tucson Metro Chamber brought together retailers, law enforcement and prosecutors to form the Coalition Against Retail Theft (CART).

CART’s “We Watch, We Prosecute” campaign will:

Educate retailers and consumers on protecting themselves from organized theft through workshops.

Increase tools for retailers to identify and help prosecute organized retail thieves by working more with law enforcement.

Resources like signs warning thieves of surveillance cameras to deter theft.

Background Screening As a Commitment to Public Safety

BUSINESS SOLUTIONS The need to hire the most qualified candidate has never been greater. Companies that utilize background screens demonstrate their commitment to ensuring safety.

The need to hire the most qualified candidate, and the inherent risk in hiring the wrong candidate, has never been greater.

What’s at stake

Workplace violence, unethical business practices and misleading résumés are on the rise. The costs of fraud, embezzlement, theft and violence are a multibillion-dollar drain on our economy, bleeding organizations both large and small.

Furthermore, negative publicity associated with negligent hiring — especially as the result of a less than thorough background check, or worse, no background check — can devastate the very foundation of a trusted organization. Now more than ever, companies should be using regulated, professional background screeners.

Less expensive than you think

The most common reason among employers for not conducting background screens is cost. That background screen cost, however, represents a fraction of the cost involved in turnover, termination, re-recruiting, re-hiring and re-training. And that’s best-case scenario for a bad hire.

 

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Protecting Yourself After The Holidays

December 29, 2016 by Leave a Comment

The busiest shopping season of the year is almost done.  The gains  and loses of the year will be accounted for, and if you had a good year, it will show on the gains column.  Preventing shoplifting or minimizing shrinkage in your store does not end at the end of the year.  Shoplifting is a continuos problem for retailers, and the loss prevention team in your store.  The beginning of the new year though, offers you a unique opportunity to start over, study the loss prevention team’s effort, and make the necessary changes for a better year.

Read the following articles for more about this and other stories.

Could Amazon Go Eliminate Shoplifters? Customers ‘Just Walk Out’

Amazon Go is a new idea in retailing, now being tested at a store in Seattle, that eliminates the need for customers to go through a checkout line. The so-called “just walk out” experience depends on “the world’s most advanced shopping technology.” Customers simply enter a retail store, choose the goods they want, and leave. The checkout process is automated: The selected goods are charged to the customer’s account automatically.

Solving Shoplifting

Most of the information I have read about the system emphasizes its benefits in terms of customer convenience. However, another huge benefit would be to essentially “solve” the problem of shoplifting. Anyone – criminal or not – who enters the store, takes items and leaves will be charged for the goods.

Shoplifting has been a huge and intractable cost for retailers for decades. Solving it is no small feat, and the potential money savings could help to pay for wider use of Amazon Go technology. After all, the high costs of the system are cited as one obstacle to wider implementation.

Amazon Go Smart Phone App

The Amazon Go system involves a smart phone app that identifies the customer as he or she walks into the store (presumably through a turnstile). In addition, there are computerized systems in place that automatically identify which customers pick up which items from the store shelves, and keep a running, real-time tally of who buys what. No need for check-out lines; it’s all automatic. Customers only need an Amazon account, a supported smartphone, and the free Amazon Go app.

Tips for avoiding holiday theft after the gifts are opened

JOPLIN, Mo.

Joplin Police officers say you can keep your holiday gifts from getting stolen by not putting those empty boxes in your trash, alerting people what you just opened. Instead, go to a dumpster and dispose your trash, especially those in bigger boxes like a TV or a laptop.
You can also use a generic-looking box or a black trash bag to hide your gift trash.

“Every day, citizens can be a target or a victim of identify theft or anything like that, so you want to do everything you can to prevent the prevent that likelihood that you become that target,” explained Sgt. Dan Haskins of the Joplin Police Department.

BBB: Ten consumer tips for the upcoming year

Better Business Bureau is proud of our mission: to be the leader in advancing market place trust. In order to fulfill that mission, every year BBB offers thousands of tips for consumers to help them find a business they can trust.

BBB helps people find and recommend business, brands and charities they can trust. Better Business Bureau serving Central, Coastal, Southwest Texas and the Permian Basin compiled the top 10 consumer tips to help you fight scammers, prevent identity theft and save money in 2017:

  • Do your research. Always check a business out with BBB before you buy. For any business, visit bbb.org to view their BBB Business Profile, which includes contact information, complaint details and customer reviews.
  • Protect your identity. Always shred paper documents that include sensitive financial data and dispose of computers, cell phones and digital data safely. Safely store all personal documents, such as your Social Security card. Pull your credit report at least once a year, and check your credit and debit card statements frequently.
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Tips To Secure Your Home And Family

December 29, 2016 by Leave a Comment

This magazine is dedicated to helping you, the business owner/manager secure your business from threats to your bottom line. However, since the holidays are over, I want to help you with some tips to secure your home and family. I live, eat and breathe this kind of stuff. It is another of my long term experiences.

We tend to look for solutions from technology but in many cases we need to get back to basics. Here are a few quick items to review:

Light-When someone is looking to do no good to your property, they feel more secure if it looks like no one is home. The key is to confuse them and make them feel unsure. Remember, most burglars are lazy. If they are not sure about your house, they will move on. So you should have at least two light timers (three is better) set up and running seven days a week. These should be in different areas of the home and should come on and off at different times. Use the random or security feature found on most timers. This will vary the on/off time every day just a little in case someone is watching the house for a pattern.

This also has another benefit. It is an elegant look for a home. It also is convenient. For example, if you have a small table lamp in your foyer or stairway, you can have that lamp come on in the evenings until past the time you go to bed normally. The light does not need to be really bright. Maybe just a 40 watt bulb. Or use an LED bulb in these lamps instead. Your energy consumption will be almost nothing in the overall picture.

Sound-You may want to hook a timer up to a TV or Radio. A TV’s changing screen/light and sound will cause someone that is outside your home and maybe close enough to hear to have pause. This works best if the window coverings are closed or it is on the second floor. You may not want this option on all the time but it is a great idea for when you are on vacation or gone for a few days.

Mail/Newspaper/Flyers/Trash cans left at the curb-NOTHING says “I am not home” like these accumulating. Have a neighbor pick them up or put them away DAILY.

Safe-Mount a small in-wall-safe in the master bedroom closet behind your hanging clothes and below shoulder level. You can pick up a good little safe for around $100. These safes are mounted between two studs. They only require that you cut the sheet rock (usually a paper template is supplied) and screw the side into the studs on both sides. This allows you to keep cash, jewelry and more, secured and very well hidden.

Water-This really does not have anything to do with security. But if you are going to be gone for a few days or more, shut off the water supply to all toilets, sinks, washing machines and outside faucets (if possible). The average washing machine hose has a life span of five years. You really do not want to come home to a flooded house and an astronomically high water bill.

Alarm Systems-On the higher tech side a basic home alarm system is a great investment. When you have a system, you should cover every outside door and the door from the garage to the inside of the house. Install several motion detectors in areas such as hallways. You do not need to overdo it. What you are trying to do is create a trap effect. The bad guy should not be able to move very far without tripping a motion detector.

Basic alarm monitoring for your home system should be no more than $19/month. If it is more, you should shop around.

I strongly suggest that you have your alarm control send its signals to the Central Station via cellular not over wired phone lines or the internet. Most troubles with an alarm system are usually as a result of wired phone line problems. Cellular (GSM) resolves most of that. Also there is no wire for the burglar to cut. There will be an added monthly cost for monitoring for GSM (cellular).

Newer alarm controls have the ability to be connected to your PC or hand held smart device. This can only happen if your alarm control is connected with GSM (cellular). This is a very nice feature. It allows you to do almost anything remotely that you can do at the alarm keypad in your home. Arm/disarm, bypass….. This feature will also add to your monthly cost.

Cameras-Several cameras mounted around the outside of your home give you the ability to check in via your PC or smart device at any time. This used to be costly with traditional CCTV systems. Now you can put up Wi-Fi cameras that have long life batteries by yourself for a very reasonable cost. Shop around for quality units. A few things to consider when purchasing:

  • Battery life should be measured in years. You do not want to be on a ladder any more than necessary.
  • Is there a battery low indicator that will be emailed to you? The last thing you need is a dead camera when you need it the most.
  • Get cameras that have Infra-Red (IR) illuminators. This allows you to see in total darkness.
  • Be realistic on what you want to see. No camera is as good as the human eye. Two cameras may be needed to see what you want to see in one area.
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Suggestions On How To Improve Inventory

December 29, 2016 by Leave a Comment

Each year retailers take inventory of their merchandise, counting what they have in the store, reconciling that information against sales receipts, vendor credits and receipts and markdowns.  Usually the result is some amount of shortage or merchandise shrink due to merchandise that cannot be accounted for and losses due to certain markdowns and damaged products.  I have in rare instances seen overages, but those are usually the result of offsets from prior year shortages often attributed to paperwork errors.  The store objective each year should be to improve upon the prior year inventory result.  Certainly the best case would be to have zero dollar shortages every year, but that is not a realistic expectation. I try to explain to employees that if one package of gum were to be stolen during the year, you have incurred shortage. There are steps a store owner or manager can take to work towards that yearly improvement and shoot for a zero dollar shrinkage year.

 The first step to improve inventory is to look at merchandise protection strategies in the store.  Are retail anti-theft devices being used to prevent shoplifting as well as employee and vendor theft?  A theft prevention system includes having an electronic article surveillance (EAS) system installed.  This would encompass EAS antennas at entry/exit points, EAS soft tags, labels and hard tags on as many pieces of merchandise as possible and deactivation pads and detachment tools at checkout lanes. By protecting merchandise with retail anti-theft devices, shoplifters and potential dishonest employees are deterred from trying to steal.  EAS protected merchandise also activates alarms if a shopper forgets about an item on the bottom of the shopping cart that has not been paid for and a tag is not removed or deactivated.  Remember, if merchandise hasn’t been paid for, regardless of the intention of the customer, it is shortage.

There are other things that a store can do to improve inventory results from one year to the next:

  • Consider offering incentives to employees who deter a theft through great customer service.  Employees on the sales-floor are your first line of defense against shoplifting.  If they are walking their areas offering assistance, they will walk upon a customer attempting to conceal merchandise, remove items from packaging or tamper with EAS tags.  Offering assistance, remaining in the area and communicating with managers is an effective method of deterrence without accusing someone of stealing. An incentive for reporting this type of activity may be the purchase of a drink or putting the employee in for a weekly or monthly drawing for a $5 gift card.  Be creative.
  • Education/Training – Make sure employees know what your inventory results are and how much was lost in the last inventory.  I always made it a point to share that information and celebrate it when we had good results.  Let your employees know that they make a difference.  Employees also need to know how to properly respond to EAS alarms and recover merchandise without making accusations.  When training is not continuous employees become complacent and begin to wave people out the door who set off an EAS alarm.  Eventually that complacency turns to ignoring the alarms altogether and the system is rendered useless.  Alarm activations also need to be recorded so managers can review for trends and ensure there are no malfunctions.
  • Make employee receipt checks and bag checks mandatory for EVERYONE.  Managers should be the first to show their purchases to an employee for verification.  When employees see that no one is exempt, they will not mind doing it themselves.  Accountability helps prevent theft.
  • Have a program in place for marking merchandise that is purchased for store use.  If  you have to get a pack of pens from your sales-floor for office use, purchase it or account for it through a ledger and then keep the package and mark it with a date and write “store use” or put a sticker on it.  It is easy for merchandise to start being used and not accounted for and it will accumulate in offices from the sales-floor.  Account for EVERYTHING, even a paperclip if it is store use.
  • Small, independent stores may not have corporate markdowns sent to them.  These stores need to evaluate their merchandise and if it isn’t selling, mark them down, but do it incrementally.  Start at 10 or 15% and see if you can move it.  You don’t want to lose profit margin.

Improving inventory is not an impossible task.  Utilize EAS technology to deter and prevent theft.  Educate and train employees and empower them with knowledge on shortage issues and how they impact it.  Profit from reduced shrinkage! 

      

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How To stop A Shoplifter?

December 13, 2016 by Leave a Comment

Police Departments across the nation are busy this holiday season launching operations aiming at catching shoplifters.  Serial shoplifters go from store to store stealing hundreds of dollars worth of merchandise from each store.  Police and retailers alike have been working together to stop this vicious and financially crippling crime.  Shoplifters are not necessarily from the area where they commit their crime, there are serial shoplifters that go from state to state, and from store to store, stealing as much as they can.  For a retailer, the hundreds of dollars stolen from their store is a financial burden, and jeopardizes their ability to stay open for business.

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

How local law enforcement are working to stop organized retail crime

BUFFALO, N.Y.–

Organized retail crime is rising across the country, according to the National Retail Federation. In Western New York, local law enforcement said they’re constantly working to stop it.

“They’ll steal goods and products from various stores, sometimes taking orders,” Officer Craig Johnson, field intelligence officer for the Amherst Police Department, said. Johnson said organized shoplifting rings operate locally and even statewide.

“[They’ll go] down the thru way through the major cities, Albany, Syracuse, Rochester, Buffalo, even to Erie, Pennsylvania,” he said. HE said the thieves use stolen ID’s and credit cards to rent cars. They’ll even sometimes steal a license plate from another car to put on their rental. Then they spend hours stealing from stores, including items like clothing, medication, baby formula and even appliances. They then move on to another city by the time law enforcement is notified.

“They could be from different states. They could be from downstate New York. It’s very hard to find out that information of who these people are,” Johnson said.

Serial Shoplifters Target Burlington Stores 

It was a busy day for Amanda Bean. First, she stole several hundred dollars’ worth of merchandise from a store that shares her surname — L.L.Bean. Burlington police cited her for retail theft and released her. Two hours later, Bean allegedly stole goods valued at several hundred dollars from the Skirackon Main Street. Bean was again charged with retail theft and let go.

Since that day in April, Bean, 33, of St. Albans, pleaded guilty to the L.L.Bean theft, but her stealing apparently hasn’t stopped. She has been arrested on similar charges twice — including on October 22, while she was serving a community-based furlough for the L.L.Bean theft. All told, Bean has been arrested more than 20 times and has at least nine retail theft convictions, along with convictions for other crimes.

Downtown merchants are frustrated with frequent fliers like Bean. While other crimes such as burglary are declining in Burlington, retail theft is escalating, police say. Between 2012 and 2015, annual retail theft calls to Burlington police increased from 341 to 423. This year, the trend continued. The number of calls between January and November 1, 2016, totaled 404, compared to 374 over the same time period last year.

‘Operation Blitz’ To Target Professional Shoplifters

MINNEAPOLIS (WCCO) — As we look to get started on our holidayshopping lists, police will be looking for professional shoplifters.

Beginning on Black Friday, more than 30 Twin Cities law enforcementagencies will launch “Operation Blitz.”

The first-of-its-kind partnership in the state will target organized retail theft and financial fraud.

Police showed WCCO how these professionals do their best to avoid detection.

Take what police say happened at a St. Paul CVS two weeks ago, when a man walked in with a gym bag and loaded it with cleaning supplies. He was out of the store in under 40 seconds.

 

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Partnership With EAS Technology And Policy

December 5, 2016 by Leave a Comment

If you are reading this, chances are you are experiencing a shoplifting problem. Shoplifting takes a toll, not only on your stres1-1s level, but your bottom dollar. When people have a problem, they research a solution. One way to prevent shoplifting is having an electronic article surveillance system installed by a reputable company. Searching for such a company can be daunting. Shoplifting is an issue that needs to be addressed and resolved quickly. Why would you choose Checkpoint equipment from Loss Prevention Systems Inc. (LPSI?)

Checkpoint has been paving the path for EAS systems and building RF technology for over 40 years. All equipment is new and installed by factory trained technicians. Checkpoint and LPSI never sell refurbished equipment. The founder and owner of Loss Prevention Systems Inc., Bill Bregar, has over 30 years of experience in loss prevention. The small retailer may not have the resources for a loss prevention department. Our background and expertise in Loss Prevention sets us apart. Over the decades, Bill has taught and created successful Loss Prevention policies and procedures for the small retailer to send shoplifters elsewhere. Both companies partnership provide a path to decrease shrink and increase profit.

Checkpoint offers several different types of EAS systems for different situations. A favorite antenna system for small to medium retailers is the P10. This system is known as a workhorse. As part of the EVOLVE line, it has people counting capability and remote access. With an internet connection, a trained technician can access the system remotely to perform preventative maintenaEASnce and typically resolve potential issues. With its strong frame and Evolve capabilities, it will last a long time and is “future proof”.

What tips and suggestions can the small to medium retailer apply to their business? Compliance and enforcement. Create, implement and abide by policies to keep the business on track. Loss of compliance equals loss of control. Employees need a reliable example and understand what is expected of them. It’s up to you to enforce the process and standards of your business.

Combine your Checkpoint technology, people and process to prevent shoplifting. Having and EAS system is only as good as the people using it. With the right people following the right process, the technology will do its job. 

Protect your business with qualified staff, effective procedures and the latest EAS technology. Take control of your success.

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