How Loss Prevention Managers Can Help Store Managers Improve Store Sales

August 1, 2017 by Leave a Comment

Loss Prevention Officers and Managers catch shoplifters and dishonest employees. That is a common perception and in some stores it may be a true picture of what Loss Prevention departments do, with the additional caveat that they may have uniformed people who conduct receipt checks. If this is all that the department does it can be hard to sell store managers on the value of having them on staff if the budget for them comes directly from the store. It is even more difficult for small, independent retailers to justify hiring a Loss Prevention Officer although if the store is in a high crime area they may contract a security guard. There was a time when there was an “us versus them” mindset between store managers and Loss Prevention teams. Over time some larger companies have focused their Loss Prevention teams more on operational issues. For example, I worked for a company that had Loss Prevention conduct food product out of date audits. Their position was that this was a safety issue so it fell to the Loss Prevention team. I had no problem doing the audits, but as I looked at the amount of out of date items I was finding I had to question what the freight team was doing when they were stocking. Who was auditing their work because there were a lot of FIFO (First In First Out) issues I was identifying that were causing out of date problems.

     The solution is for a partnership where Loss Prevention can help store managers and owners improve sales and operations and store management provides administrative support for L.P. What is it that Loss Prevention can offer a store in addition to improved profitability by stopping employee theft or preventing shoplifting? As a Loss Prevention Manager I assisted the store managers in conducting prospective employee interviews. I was already interviewing my own applicants when I had job openings so helping the store fill their positions was not a big deal. L.P. can audit out of stock spaces on shelves. Certainly the focus of the L.P. Officer is on empty shelf space due to theft but if it is determined that merchandise is not being pushed properly by a stocking team then that information can be shared with management. The impact of not properly stocking merchandise results in missed sales and negatively affects profits.

     Loss Prevention departments can also support stores by applying electronic article surveillance anti-theft devices to merchandise. I have personally spent significant amounts of my time placing Checkpoint tags on CD’s, DVD’s, and electronics merchandise. I have also placed security tags on clothes, thwarting would-be shoplifters and keeping shortage down. You may be thinking that this should be a Loss Prevention job anyway but that isn’t necessarily the case. There are stores where tagging is left to a freight unload team or even delegated taggers. It saves the store money in these situations when L.P. jumps in and assists in tagging allowing the hours saved to be put to use somewhere else.

     Is it important to maintain some delineation between L.P. and stores? I believe there should be some dividing line and it may not always be clear. I have seen some managers give direction to L.P. Officers which began to interfere with their primary responsibility of catching shoplifters. I have also seen department managers start entering the Loss Prevention office when no one from L.P. was present and move cameras to watch their cashiers or employees to see if they were being productive. This potentially causes issues with ongoing investigations when cameras are not where they are expected to be. A partnership between L.P. and stores requires a mutual respect for areas of responsibility.  Likewise I have seen instances of L.P. Managers telling store employees were not doing a job properly rather than acting in partnership and mentioning an observation to the department manager.

     In a partnership, store managers may provide a store employee as a witness for L.P. when a shoplifting suspect is in the office. They may also provide a witness for a L.P. Manager when they are going to conduct a dishonest employee interview. Managers may also offer to purchase additional security equipment such as cameras when L.P. teams have been strong partners and have helped to keep merchandise on the floor and prevented shoplifting.

     There are many ways that stores and L.P. can be partners in making a store profitable. All it takes is thinking outside the box and building a relationship based on respect. Strong partners make a winning combination.

     

     

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Setting Goals In L.P. Vs. Setting Quotas, What Are The Benefits And Costs?

August 1, 2017 by Leave a Comment

Police hear it all the time when issuing tickets, “Need to make your quota for the month?” Usually it is a false question with a false premise that has been perpetuated over time. While there may be some police departments that set quotas they are the exception rather than the rule. Loss Prevention departments go through similar problems. Some people think that Loss Prevention staffs are out to rack up numbers any way they can get them. Most L.P. professionals are simply trying to catch shoplifters who are stealing and they want to apprehend dishonest employees to stop theft, prevent shrinkage and it can serve as a notice to other employees that theft won’t be tolerated. For some L.P. personnel there is a perceived pressure to “get more shoplifters” and in other cases it is real. For the retailer that is not able to pay for a Loss Prevention Staff, their concern is simply to drive the bad guys somewhere else and get rid of a crooked employee before they cause too much damage. Sometimes this is done using electronic article surveillance equipment from a company like Checkpoint Systems. They don’t feel the same pressure to “apprehend” but there is a sense of urgency in minimizing theft opportunities (how to do that becomes another matter).

     There are stores with a Loss Prevention hierarchy that sets “expectations” or “goals” for the apprehension of dishonest employees or shoplifters. The message that seems to get down to the store level is that there is always theft in a building, all the time. I have seen this lead to a requirement that stores have a minimum number of open internal investigations at all times. No pressure there, right? Wrong, the words may not be spoken but the message that is heard (correctly or incorrectly) is that cases will be successfully closed. And that implies that not doing so will impact an annual review. For most people, integrity will ensure they do not try to manipulate a case or make a shaky apprehension say for a single incident of grazing or snacking but do such cases exist? I suspected such activity was taking place at other stores but could not prove it.

     The same type of pressure can be felt by Loss Prevention Officers. They get on a cold streak and can’t seem to make an apprehension and the L.P. Manager starts to get questioned about low shoplifter numbers. No one says a specific number have to be caught but “guidelines” are established that say on average, x number of shoplifters should be apprehended for every x number of hours an Officer works. The Associate then begins taking more risks, focusing attention on high theft areas that carry more risk for making stops like in cosmetics and costume jewelry. The theft is taking place there but following all of the apprehension steps for such small pieces of merchandise can be very difficult. A suspect puts down an item without the Officer seeing it and a bad stop is made. Yes, it can happen with almost any piece of merchandise but those types of merchandise are extremely risky to make stops on. But, harder still is that the same L.P. Associate while told that apprehensions should be higher is also told to avoid risky stops on items like cosmetics or jewelry unless it is stolen along with other merchandise. This sends a mixed message to the Associate.

     None of this is to say that goals should not be set. Working without a goal is like running a race with no clear finish line. Goals can be set based on historical data or on the season of the year. Allowing an L.P. Associate to be part of the goal setting is also important. It is up to the Manager to make sure the goal is reasonable. A goal set too high can frustrate an Associate if they don’t achieve it. Setting reasonable goals also gives a boost to one’s self-esteem if they achieve it. A good Associate will also want to beat their last achievement but not at the risk of a bad stop.

     For L.P. Managers, setting internal apprehension goals is fine, but the bigger picture should be on achieving improved shortage results. Identifying and focusing on the core issues for the store, whether they are operational or theft related. An L.P. Manager engaged with the store team will be able to educate and train while picking up on suspicious employees who may need to be investigated. Don’t assume that low shortage results means no theft, it may mean L.P. knows where and when to focus its’ time and energy.

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Safety And Shoplifting

July 11, 2017 by Leave a Comment

As a retail business, shoplifting, employee theft and lawsuits come hand in hand.  Preventing shoplifting and employee theft are somewhat under control by you or the management of the store, while  lawsuits are-although preventable-not under strict control. 

A shoplifting incident can become something of a life or death situation very quickly. Here, the rules and regulations set by the owner or management of the store and that employees must abide by become too important to ignore. 

As an owner or manager of a store, safety must be your number one priority.  Safety not only for your employees, but for your customers as well. An employee chasing after a shoplifter when they have left the premises is dangerous and should never be encouraged. Lawsuits and deaths lost due to chasing after a shoplifter have been numerous.  The resulting death of a shoplifter have landed people  in jail and in the courthouse. Safety should be your number one priority at all times.

Family of slain Chicago area Uber driver sues Walmart

CHICAGO — Relatives of a suburban Chicago Uber driver who was fatally attacked while on the job has sued Walmart, where authorities say the driver’s teenage attacker stole weapons just before the killing.

The family of Grant Nelson filed a wrongful death lawsuit Monday in Cook County against the retailer and two other companies overseeing its security.

Authorities have charged 16-year-old Eliza Wasni in Nelson’s death, saying she stole a machete and knife from Walmart early on May 30 and then got into Nelson’s car and brutally attacked him.

The lawsuit claims two Walmart employees or contractors stood near the door as Wasni exited. The lawsuit alleges they were negligent because they failed to stop the teen and ask her any questions.

Guard at CVS Pharmacy chases down, kills shoplifter in Dallas, police say

A loss-prevention staffer at a CVS Pharmacy store shot and killed a suspected shoplifter after chasing down his getaway car Sunday afternoon in southeast Dallas, police say. 

Police arrested 36-year-old Julio Ruvalcaba Monday on a murder charge.

Officers were dispatched to the shooting about 3 p.m. Sunday and found 31-year-old Christopher Geddes lying on the curb on the eastbound C.F. Hawn Freeway service road and Elam Road, police said.

He was taken to a hospital, where he died from his injuries.

Surveillance video showed Geddes shoplifting from the CVS on South Buckner Boulevard and running to a Toyota Camry in the parking lot, according to an arrest warrant affidavit.

Footage from several minutes later shows another person leaving the store and getting into a Chevy Camaro parked outside. CVS employees identified that person as Ruvalcaba, a loss-prevention staffer tasked with reducing shoplifting.

 

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How To Hire Talented People For Your Business

July 5, 2017 by Leave a Comment

Hiring talented people for your business is going to cost you, and it should.  Hiring good employees takes time and money.  It is not only the salary you are going to offer when you hire an employee that is going to cost you, but the perks you offer them as well.  Hiring a good employee should be a tried process that you or your company have developed.  The cost associated with hiring a new employee is not something to take lightly.  And for the retail industry, the difference between hiring a good employee or a bad one can have bad financial consequences from the start.     Follow the links below for more about this topic.

Want To Hire Great Employees? Fix Your Broken Recruiting Process

It is sad that business leaders still complain about “talent shortages” when anyone who has applied for a job lately knows that the standard corporate or institutional recruiting process is badly broken.

It isn’t talent shortages that keep employers and willing and capable job-seekers apart. It’s the broken-down state of the recruiting process!

Leaders who are serious about hiring great people need to examine their own internal practices and fix whatever is broken.

Here is a simple checklist of common breakdowns to get them started:

Ten Broken Recruiting Practices To Fix

1. Job ads are too often written in an opaque, insulting way that doesn’t even try to sell a job-seeker on the opportunity — but instead lists endless Essential Requirements that few if any working people possess.

Can A Change In Retail Hiring Practices Help Save America’s Department Stores?

In their early days, department stores were the epitome of innovation. Towards the end of the 19th century, Marshall Field was challenging the old-fashioned notion that shopping should be conducted purely out of necessity. By emphasizing customer service (his famous motto: “give the lady what she wants”), offering luxury amenities for his clientele and turning shopping into a full-blown experience, he truly revolutionized the retail industry. At the turn of the century, his protégé Harry Selfridge brought the mentality of “the customer is always right” from Chicago to London, further revolutionizing the industry through ingenious marketing stunts and a customer-first approach at Selfridges & Co. 

Just one century later, the advent of the internet has once again revolutionized the retail experience – unfortunately, not to the benefit of most brick-and-mortar retailers. These days, shoppers don’t need to visit their local department store to purchase a new pair of shoes – thanks to the internet, they’re now spoiled with options in all kinds of colors, styles and sizes. Nowadays, we can purchase virtually any style of shoe from anywhere in the world at a competitive price point, and, for the most part, still receive fairly decent customer service.

A key portion of the retail apocalypse has been going on for decades

​A significant consequence of the downturn in brick-and-mortar retailing is that thousands of people are losing their jobs. 

In May, there were nearly 19,000 fewer people working in department stores compared to January, according to the Bureau of Labor Statistics, amid a record pace of store closures. This is happening because the US has built too many stores since the 1990s, and online shopping is booming.

A look back shows that retail jobs have been declining as a share of overall employment since the late 1980s.

“Employment in grocery stores, department stores, electronics stores, furniture stores, etc. has been declining as a share of total employment since 1989,” wrote Torsten Slok, the chief international economist at Deutsche Bank, in a note on Wednesday.

“Another way of saying this is that we have seen less growth in the retail sector relative to other sectors in the economy. Put differently, it is nothing new that the retail sector is underperforming, and looking at the absolute level of employment in retail it is currently close to the highest level in twenty years.”

 

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Look For Red Flags When Reviewing Applications And Interviewing Job Candidates

June 30, 2017 by Leave a Comment

How many of you have done IT? You know the IT I’m talking about. You looked at an application, interviewed the candidate, had a bit of an unsettled feeling about him or her but hired them anyway. IT may be a few days, a few weeks or a few months later but IT becomes a reality, buyer’s remorse. You hired someone who turns out to be a dud. It may be they are calling out of work on a regular basis or perhaps they aren’t following directions on tasks you are assigning them. It may be that you think they are stealing money or merchandise from you. Whatever the problem you just wish you hadn’t hired this person. It is frustrating to make those types of employment decisions, but don’t feel like your small retail store is all alone because you have to make these hiring choices yourself. It even happens to big companies that have Human Resources departments dedicated to trying to hire and retain the best employees.

There are things the smaller store owners and managers can do to try to improve their chances of hiring good applicants for their stores:

  • First and foremost, if you aren’t doing background checks consider hiring Loss Prevention Systems Inc. (LPSi) to do them for you. Their team can dig into a candidate’s past to verify they aren’t hiding important information from you. They can do criminal background checks, verify employment, validate driving records, and so much more. By having a background check company conduct pre-employment screenings on your candidates you also protect your business from potential liability lawsuits if your employee were to harm someone while acting as a representative of your business.
  • When you are reviewing applications look for red flags on the application itself. This could be a significant gap between jobs. While a month up to three months may be explained as just a difficult time finding employment, more than that may be a cause for concern but not necessarily a deal breaker on its own.
  • Look for brief periods of employment or a pattern of going from one job to another, sometimes known as job hopping. While some of this may be expected from a teenager or a college student who may have to find summer work between spring and Fall Semesters it should not be the case for someone out of school for a year or so. Job hopping could indicate someone who has problems at work either with the job itself or the manager. It could also indicate someone who has been stealing and quit before being caught.
  • If your application asks if a former employer may be contacted, look out when the applicant indicates “no” and/or leaves the former supervisor’s name off of the application. There could be a reason they don’t want you to contact that employer.
  • When conducting interviews look for the way the applicant dresses. Regardless of how casual the atmosphere of a business may be it should still be expected that an applicant will come to the interview in at least business casual attire. If an applicant does not care enough to make an attempt to impress the boss in an interview it is highly unlikely they will attempt to impress the boss in their job performance.
  • Look for eye contact from the applicant during an interview. Some people do not know how to interview, have been out of the workforce for a while or may just be nervous so some glancing around is to be expected. On the other hand, there should be some eye contact and if it seems the person is avoiding it, you should consider this a red flag.
  • Cell phones! While they seem to be a necessity of life, they do have an off button. If your candidate fails to mute a phone and it goes off during an interview let it raise a flag. If the applicant asks if you mind if they take the call, I suggest you end the interview at that point. Very few life and death matters take place during an interview. It is more a matter of poor planning. They didn’t take time to mute their phone, turn it off or tell someone where they would be at the time of the interview. If you aren’t more important than that phone during an interview you won’t be more important when they start working for you.

When you hire someone you invest a lot of time and money in them. When you have to get rid of them you start the whole process over and invest more money. Don’t throw good money after bad, recognize red flags and hire right the first time.

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The Costs Associated With Poor Hiring Decisions

June 30, 2017 by Leave a Comment

We make decisions each and every day that have consequences. We set our alarm clocks and when they go off we choose to do the right thing and get up so we have time to prepare for work properly, showering, grabbing a bite to eat, sipping a cup of coffee or two and saying good-byes to our family. It is possible we may choose to do the wrong thing, hit the snooze button and get that 5 extra minutes of sleep but there is a cost associated with it. That five minutes easily turns to fifteen minutes, showers go by the wayside, we grab the first thing we can find in the closet (or hamper), our socks wind up not matching and if we are fortunate we grab a cup of coffee in a travel cup and hope it doesn’t spill on us as we jog/stumble to the car.

Employers can make poor decisions too when they don’t take the time to hire the right person. Some of you may be familiar with a cost/benefit analysis. You probably use it when you are deciding how to run your store(s). Do you allow your inventory shortage numbers to sit at 1.5% or do you invest in a Checkpoint Security System, spending money now but reaping the benefits later in significantly reduced shrink due to theft?

Do you keep investing all of your money into one store hoping to find the formula that will increase your foot traffic or do you take the risk and open a second store in a new market and try to attract a new batch of loyal customers? Is the cost of the investment going to benefit you over time with increased sales? The same thing holds true for your hiring decisions.

When you hire the right person, all kinds of good things can happen. You may bring on a future department supervisor or assistant store manager. You might be adding that person who seems to make everyone around them smile co-workers and customers alike. Sometimes your hiring decisions result in a home run and that new employee is just a self-motivated go-getter who learns quickly and doesn’t wait around to be told what to do next. The right person offers new ideas and suggestions to help a business get better and wants to see the company succeed. Those people exist it’s just a matter of finding them by not rushing to fill positions and hiring the first person you interview.

But did you know there are hidden costs to making a bad hiring decision? Suppose the applicant doesn’t work out for you for one reason or another and you have to end his or her employment, now you have to go through the hiring process again. What does it cost to advertise the job? How much time will you spend reviewing applications, making phone calls to check on references and setting up interviews? Let’s not forget the time it takes to conduct the interviews. Once you make a hiring decision, guess what? Now you have to train your employee, investing more time and pay for the time training is taking place. Oh, and did I mention that there is a chance that the person you fired will file for unemployment? You may have grounds for termination but even if you do, you need to spend time at the unemployment office fighting the claim. The larger retailers often have a Human Resources Manager to take care of this, unfortunately smaller business owners don’t have this person and so the owner or store manager has to go to the hearing.

What are some of the other costs associated with making a bad hiring decision? A poor performer can have a negative impact on the morale of other team members. Who wants to pick up the slack for someone else? You may have hired a thief and then your cost is amplified in the shortage they are causing in stolen money or merchandise. You may find you pay for a poor hiring choice in terms of spending time on disciplinary action and all the steps you have to take to get rid of the employee.

What’s the answer for a small retailer? We can help you with pre-employment screening as a background check company who can thoroughly investigate a prospective employee doing the legwork of checking out who the applicant really is. Next, take your time in reviewing applications. It’s better to be short-handed for a while and get a quality candidate than just filling a spot out of desperation. Building a strong, reliable team may feel like it takes longer but it will pay for itself in the long run. 

     

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Smaller Retailers Retaining Talented Employees In An Improving Economy

June 30, 2017 by Leave a Comment

I remember the days when I needed to fill a position on my Loss Prevention Team and we could post an advertisement and I could easily get a dozen applications or more. Some of these applicants were talented and had extensive Loss Prevention experience and some had very little work experience at all but were looking for a job. The same thing happened when our Human Resources Manager would post job ads for cashiers, flow team or just about any position in the store, people needed work and took the time to sit at our application kiosks and apply on the spot. I’m not implying it was easy to conduct all of the interviews and sometimes the pool of prospective employees did not seem very appealing but they wanted the work and we could be somewhat choosey. The upside to this was that from a disciplinary and retention perspective, if an employee was not doing the job expected of them or they had attendance issues it was easy to go through the corrective action process and correct them right out the door. We knew we had people chomping at the bit for those positions.

     Another benefit for the store in a struggling economy was that good employees were fairly easy to retain. There wasn’t a lot of competition looking to hire new area or department managers. Talented employees also knew that they were probably going to get the maximum available hours and were sure of their position within the store. Going to another business had risk associated with it since there was no guarantee they would be getting the same hours or enjoy the management. While the employee may not have cared for all of the managers in our store, the managers’ styles were a known quality to the employee.

     Today the economy is improving and it is getting harder to hire and retain talented staff. Many national retail chains are now starting their employees out at $9 and $10 an hour. It is difficult to compete with these kinds of wages for entry level positions and for a small retailer, the choice could be hire at the rate but the cost of doing so is a reduction in the total number of employees you can keep on your team. If you are successful at bringing on an employee at minimum wage, how do you retain the talented employee who may be drawn to greener pastures on the other side of the fence? What can the small, independent store owner do? Let us offer some tips that can help you keep the great employees you can’t afford to lose:

  • Show your appreciation. It may seem silly but people want to know they are pleasing their manager/boss. Your store may be too small to have an employee of the month, it doesn’t work well when you only have a small number of people working for you. That recognition loses its value fairly quickly. Buying a drink for someone from a soft drink machine or bringing in pizza or snacks is always well received. It shows you’re thinking of them.
  • Get to know your employees and even learn something about their family. If something happens with their family member that they are proud of, like a child graduating from high school, give them an opportunity to tell you about it. If they have a sick family member or even a pet express your sympathy, maybe even suggest they take a day or two off to care for that person or pet.
  • Consider buying a small gift card of $10 or $20 every once in a while to a fast food place or a movie theater. Don’t necessarily make it in conjunction with any specific activity the employee did for you or any special sale they made. Do it at randomly and maybe place it in a “thank you” card with a note letting them know you appreciate their hard work.
  • Speaking of “Thank You” cards, there aren’t a whole lot of things that mean more than a hand written note mailed to someone’s home expressing gratitude for the service they provide to a company.

If a monetary bonus is in the budget following a successful inventory or prior to a holiday, like a Christmas bonus, it can go a long way to employee retention. A small bonus for someone making minimum wage can make a big difference for them.

It is hard for a small retailer to compete against the big companies, especially in retaining talent. That doesn’t mean it’s impossible. Demonstrate loyalty and appreciation for the people who make your company successful and they will return the favor.

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Shoplifting, Employee and Vendor Theft: Is There A Solution?

June 28, 2017 by Leave a Comment

Employee theft, shoplifting, and vendor theft are problems that the retail industry faces every single day without a clear solution. The billions of dollars lost to these crimes is a constant problem for retailers, and the losses have to be accounted for someplace else, and they need to make them up somehow to minimize their losses.  The amount of sales retailers need to cover any losses is significant and not easy to do. Is preventing the loss the first step to stop the crime? Read more about this topic by clicking the links below.

Wage Theft and Shoplifting: Same Cost, Different Deterrents

A massive force is deployed against one, but not the other. (Guess which.)

ach year, shoplifters steal roughly $14.7 billion worth of goods from stores. (So says the Retail Theft Barometer.) Each year, employers steal roughly $15 billion from their workers by paying them less than the minimum wage, according to data from the Economic Policy Institute.

The treatment of these two kinds of crime, however, are completely different.

Many more resources go into trying to deter, detect, and punish the guy trying to pinch a video game system off the shelf at the local big-box store than into the grand theft the store itself may be perpetrating against its own employees—even if the retailer is taking millions of dollars from workers’ paychecks. It’s one more way that the economic crimes of the powerful are treated far less seriously than the transgressions of those with less power.

Task force teaches businesses how to thwart fraud, theft

The enormous number of ways criminals can defraud shoppers and business owners requires increasing awareness about how to combat their efforts, Greenwich police detective and state financial crimes task force member Mark Solomon told attendees of a Monday panel on how to combat identity theft and retail fraud.

“It’s a constant cat-and-mouse game — there’s always a vulnerability criminals will learn to exploit,” Solomon said during his presentation. “It’s not if (criminals) do have our information, but how many times over they have it.”

Due to its wealth and slowness to adopt more secure credit card technology, the United States has become a prime target for cybercrime and fraud, according to Solomon and his co-presenter Christopher Riley, resident agent in charge of the U.S. Secret Service’s Connecticut financial crimes task force.

Employee retail theft soars says new report

​When it comes to insider theft and employee dishonesty, the news is not good for the nation’s retailers. At least that is what Mark Doyle, president of Jack L. Hayes International, one of the leading loss prevention and inventory shrink control consulting firms in the world, confides as the group announced the results from their 29th Annual Retail Theft Survey this week.

The 23 large retailers who were surveyed comprise 16,038 stores across the country with over $370 billion in sales in 2016 and they reported 438,000 incidents of shoplifting and employee theft where suspects were apprehended. A staggering $120 million was recovered by retailers from these thieves.

“The five-year trend shows a continued increase in employee theft in both apprehensions and recovery dollars.  This past year is the first decline, which was very minimal, in both shoplifting apprehensions and recovery dollars. In four of the past five years both shoplifting and employee theft apprehensions and recovery dollars have increased, and in many cases, this is with a reduced loss prevention/asset protection staff.  The losses are real and the theft problem is only getting worst,” says Doyle.

 

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Employee Theft and Shrinking

June 21, 2017 by Leave a Comment

It is not surprising that employee theft and shoplifting increases every year.  With online “chat rooms” where shoplifters share their “methods” and the many ways they can get away with shoplifting, it is not surprising the losses across the globe are reaching staggering amounts. 

In 2013, the losses due to shoplifting amounted close to $16 billion globally, a 34% increased over the previous year.  The National Retail Security Survey revealed that in 2015 retail lost an approximate $45 billion due to shrinking, up by more than a billion from the previous year.

What are the expectations for 2016, and 2017? What will the losses amount to this year?

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

Employee Theft on the Rise According to Latest Retail Survey

Major retailers lost over $44 billion in thefts by customers and employees according to Jack L. Hayes International’s annual Retail Theft Survey.

Wesley Chapel, Fla. — Jack L. Hayes International, a leading loss prevention and inventory shrinkage control consulting firm, has released its 29th Annual Retail Theft Survey.

According to the survey, 438,000 shoplifters and dishonest employees were apprehended in 2016 by 23 large retailers who were able to recover over $120 million from the thieves.

“In 2016, dishonest employee apprehensions increased almost 10%, with the dollars recovered from these dishonest employees up nearly the same amount (9.3%). While shoplifting apprehensions and the dollars recovered from these shoplifters decreased ever so slightly, 0.2% and 0.9% respectively”, says Mark R. Doyle, president of Jack L. Hayes International.

According to the survey, one out of every 27 employees was apprehended for theft from their employer in 2016. The total number, 53,786, is an almost 10% increase compared to last year.

Over $42 million was recovered from dishonest employees in 2016, up 9.3% from 2015.

Survey participants apprehended 384,296 shoplifters in 2016, a slight decrease of 0.2% from the prior year. The average shoplifting case value in 2016 was $203.18, a slight decrease from 2015 when the value was $204.57.

Exclusive Retailer Survey: Tackling Shrink 2017

C-stores may suffer from a bundle of cash-related issues, but tech-driven solutions are on the way.

One of the show-stopping numbers from the musical “Cabaret” includes the famous refrain, “Money makes the world go ’round.”

But money also makes the world of convenience retailing complicated. And problems such as cash miscounts, sticky-fingered employees and lack of data around dollars can stop the show for eager-to-perform operators who have to devote valuable time and resources to solving these snags.

To help shine a spotlight on the currency concerns c-store retailers face, CSP and Technomic conducted their seventh-annual cash-management report, commissioned by FireKing Security Group (complete results below). Finalized in March, the study surveyed 175 convenience operators who make or influence choices related to cash flow, banking and cash management in their stores. Thirty-seven percent of respondents operate one store, while 63% operate two or more locations.

Results from this year’s study reveal big concerns—and opportunities—for retailers’ cash-handling practices.

The Amazon Approach to Groceries Won’t Replace Stores

It’s a model that could thrive in dense, affluent areas. Most areas are neither dense nor affluent.

​For a certain kind of urban professional, Amazon and Whole Foods are brands that define the consumption of staple goods: the weekly trip to pick up cheese, produce, maybe some pasture-raised organic beef; and the nice UPS man dropping off everything else, from toilet paper to truffle oil. On Friday, those folks learned that they are facing a future of truly one-stop shopping: Amazon.com Inc. plans to acquire Whole Foods Market Inc. for $13.7 billion.

But what about the rest of America? Well, if you happen to work for rival grocery chains, the news is not good. Competitors from Costco to Kroger to Dollar General saw significant chunks knocked off their market capitalization. Other casualties may include Walmart, the $15-an-hour minimum wage (Amazon is aggressively experimenting with cashierless stores), and the rather unique corporate culture that drives Whole Foods.

 

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Do You Know What a Shoplifter Looks Like?

June 16, 2017 by Leave a Comment

 

  1.  A French Historian is accused of stealing American war heroes’ dog tags to sell on eBay. 

  2. Colorado publisher accused of stealing money from authors

  4.  Store clerk accused of stealing thousands in lottery tickets

The retail industry is not the only one dealing with theft in the United States.  The retail industry looses more than $35 million dollars  to shoplifting every day in the United States. But, theft does not seem to restrict itself to retailers, theft occurs in every place where the opportunity arises.  The shoplifter can be a member of a shoplifting ring, or a regular shopper who has a job, a family, or even financial stability.

There is not a profile of a typical shoplifter.  The shoplifter can be a government representative or a store clerk, a policeman or a French Historian, a shoplifter can be a member of your family or a neighbor.  Many of these people often times feel ashamed or are unable to talk about this issue with other people and are unable to seek help, but the problem does not go away, and everyone looses.

If you are in the retail industry and believe what a shoplifter looks like as they enter the store, then you have already lost against shoplifting. Training the management and employees of a store to combat shoplifting is an important aspect of any store that wants to be profitable.

Read more about this and other issues by clicking the links below.

Exactly What Is a Shoplifter and How Much Do You Know?

Industry veterans may find it odd to ask ‘What is a shoplifter?’ after years of experience. But it’s always good to revisit the fundamentals.

When asked “What is a shoplifter?”, most readers of the LPM Insider probably have a pretty good idea of how to respond. I do too, but it’s interesting what you learn (or re-learn) when you actually do some research on the subject. If you look up the definition of shoplifting, you will find different variations in wording. Some reference larceny, some concealment, and others talk about intent. But the basic definition boils down to this: shoplifting is the “theft of merchandise from a store or place of business.”

The terms “shoplifting” or “shoplifter” are not usually defined by law. The crime of shoplifting generally falls under the legal classification of larceny and can be a misdemeanor or felony, depending on the dollar amount stolen. State by state, larceny laws vary greatly.

For the average person, shoplifting is sometimes confused with burglary or robbery. However, all three are different. Burglary refers to unlawful entry into a building with the intent to commit a crime, especially theft. If a burglar is successful, they will not come in contact with another person.

Shoplifting girl sparks compassion from Atlanta police officer

Atlanta (CNN)In a rough part of this city’s northwest side, the call about a shoplifter at a discount store should have been straightforward.

For Officer Che Milton, it was the first call of his shift — on his fourth day on the job.
Inside the store, Milton met a sobbing 12-year-old named Heaven Staples.
“She’s crying, bawling. Tears everywhere,” Milton told CNN. “She was upset she was caught stealing.”
Heaven told him that she was stealing shoes because her 5-year-old sister needed them.
“I couldn’t put her in the system, being 12 years old, for stealing some $5 shoes,” Milton recalled. “I’d rather just take her home and see what’s going on.”
The ride was short. Heaven cried. Then, they walked in the door.
“That’s when I saw the conditions — how the conditions were in the house,” Milton said: five children and their big sister, Heaven, without much food or furniture.

 

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