Shoplifting Prevention

 

shoplifting4The holidays are over and looking at your sales, revenue, expenses, profits and inventory, you are probably realizing you had a good year, or a year where inventory has disappeared and don’t know where it went.  If the strategy to prevent shrinkage in your store hasn’t workout, have you looked into the reason why? Is employee theft a problem you have overlooked? Looking at your data carefully, you can analyze and probably pin point a few problem areas that are not being addressed, and then you can probably find a solution to the problem or at the least address the problem before it gets out of hand.

For more about this topic follow these links below.


Are Retailers Selling Shoplifting Tools?

Boosters are savvy in their methodology of offending. They often find creative ways in which to conceal property when shoplifting—in their clothing, via a special “booster bag,” etc. However, occasionally they capitalize on resources provided by the very location they intend to victimize.

While shopping in a nationally known chain drug store, I found an inexpensive, insulated six-can cooler bag, which appeared to have an aluminum lining, sitting on an aisle shelf out of view of the customer service area. When I saw this, I found it to be an aluminum-lined potential booster bag, the use of which is a felony in many states. This sparked my interest; is it possible that retail locations unknowingly stock booster supplies?

I purchased the cooler bag and went to one of my corporate retail colleagues to test the bag with two different types of electronic article surveillance (EAS) tags; the classic hard tags and UPC-style sticker tags. After a series of tests, I noted the following results:

• Effective in disrupting the UPC-style EAS stickers. I would have to hold the bag flush against the tower for the alarm system to activate.


Police holiday operations see some success

INCREASED PATROLS, SPECIAL DETAILS CURB CRIME

Local police efforts to deter holiday crime saw some positive results.

The Lemoore Police Department conducted a number of special details to prevent holiday crimes and educate citizens to defend themselves.

Cmdr. Maggie Ochoa said police set up informational booths where officers and civilian staff answered questions from citizens and distributed educational handouts about drugs and gangs.

Officers also conducted 39 random checks on registered sex offenders in the Lemoore city limits.

Eight of those offenders were found to be out of compliance or in violation of their registration requirements.

Ochoa said plain-clothed police officers also patrolled areas where there had been reports of thefts, suspected drug use and gang activity.


Common shoplifting techniques

Hiding the Merchandise

Favorite Shoplifter DevicesAnchor

A large open bag is a common shoplifter tool. It is placed at the thief’s feet, and objects are casually dropped into it. Be on the lookout for the “bad bag” — a paper bag that is dirty and wrinkled. Also keep an eye out for shopping bags that are not from local stores. Preventing this is why many stores staple bags shut. Other stores require customers to leave their bags by the front door when they come in.Anchor
Women sometimes use purses to hide stolen items. There is little you can do to stop women from carrying purses and handbags. The best prevention in these cases is to watch the customers very carefully.Anchor
The baby carriage or stroller is a great tool for shoplifters. There are always blankets, toys, and other things in strollers (including the baby) that merchandise can be hidden under. Some thieves have even built false bottoms in baby carriages.

Shoplifter Quick Tips

Sshoplifting1ince you are in the middle of your Christmas selling season and do not have much spare time I wanted to give you a very brief list of important shoplifting prevention tips:

  • Impulse, amateur and professional shoplifters are all deterred by customer service. If you suspect shoplifting, pour on the customer service. They will get the message.
  • Shoplifters tend to hit when you are busy and not paying attention. Do not give them the opportunity, they will exploit it.
  • Some shoplifters work in teams. One person will distract as many of your staff as they can allowing their partners time to steal.
  • Greet EVERYONE who enters your store! Well, established studies have shown that a solid verbal greeting such as “Welcome to XXXX” WITH brief eye contact will deter most impulse shoplifters.
  • If you see or suspect a person has concealed your merchandise, customer service them “to death”. Try one of these:
    • “May I help you?”
    • “Can I show you a _____________ to go with (concealed item)”?
    • “Can I hold (concealed item) for you at the register?”
    • “Will this be a charge or cash sale?” 
    • “May I ring this purchase for you?”   
  • At checkout EVERY CUSTOMER should be asked, “Is there anything else”. There are 2 very good reasons for this question:
    • Legitimate customers may remember an item they forgot. Can you say “add on” sale!?!
    • Impulse and amateur shoplifters may feel anxious or guilty about what they have done. Or they may fear that you know or saw them and produce a concealed item.

I hope this helps you this season. Please let us know, if we can assist you. FYI Checkpoint Systems has just released the new N10 EAS system that fits on your door frame. We have it! It is an awesome system at an awesome price.

Happy Holidays!


HOW SECURE IS YOUR BACKDOOR

LPSI EVOLVE-Store Mobile AppWhere are you losing the most to employee theft? Is it cash through the point of sale, bogus invoices, or fraudulent discounts? If you’re like most retailer stores, it’s more than likely a little bit of each. One area that is so often overlooked is our back doors. If not properly controlled, you can lose tens of thousands of dollars’ worth of merchandise before it even hits your sales floor.

Just this past year, I worked a case in one of my high shrink stores. The managers were reported huge losses in electronics items and hunting accessories. After an investigation was conducted, we were able to determine that the product had never made it to the shelves. After a few days of surveillance, it was clear that a handful of receiving associates were operating their own small business. Product was simply taken off the truck and taken right out the back doors.

Just a few months ago another store was missing approximately 10,000 units of ammunition. We tracked this shipment from our warehouse, where we had video of it leaving the dock, as well as video of the merchandise being unloaded at the store. Video also showed a receiving employee wheel it out the back door on a pallet and load it into his personal vehicle.

I could sit here for hours recalling case after case, where employees exploited physical security failures around our back doors. In just about every single case, there was a violation of our company’s policy that led to the associate being able to steal the product. As managers, you have to take ownership of this area, or else it will bleed you dry.

First, ensure that only managers have a key to the back door and that a manager is the only one using those keys! All too often, I’ve seen managers give their keys to a “trusted” associate, in an attempt to delegate tasks, only to have that associate rob them blind. Your managers are key holders for a reason; and that trust should only stay with them.

When manager does open the back door, they should stay at the doors. I’ve had cases where a manager would step out of the warehouse for a minute with the door open, and an employee would run product out. If the door is open, the manager stays posted until the doors can be locked. This is a non-negotiable item for my company. Unsecured and unattended back doors can get a manager a coaching in their file. It’s that serious.

Plenty of stores don’t have the luxury of a compactor and have to take the trash out to an open-top dumpster several times a day. This is a great time for employees to stage product inside of trash bags. To prevent this, you should mandate that all boxes be broken down prior to the door being opened. In addition, use clear garbage bags instead of solid black. This lets you see what each bag contains before it goes outside.

Securing the back door, to me, is just as important as any other physical security measure used in the store. I can use all the EAS devices and anti-theft tools in the world, but they won’t be effective if the product is flowing out of the back door. This is one of the biggest areas of potential loss for any store and I can guarantee that if you have any weaknesses, or lapses in policy, a dishonest employee will find them and they will exploit them. Do yourself a favor and make sure your back door policy is locked down this holiday season.


What To Do With Your Customer Feedback

image3-NEOBIZMAG

For retailers around the country and business in general, customer satisfaction is very important nowadays.  The internet has made customer complains known worldwide. An uploaded video can go viral without the company having control over it, and the damage it can inflict upon the company can be horrendous. What can you do to assure that you take customer complains or suggestions seriously? What can you do with them once you have the data?  For more about this topic follow the links below.


5 Cool Things You Can Do With Customer Feedback

Join us at Entrepreneur magazine’s Growth Conference, Dec. 15 in Long Beach, Calif. for a day of fresh ideas, business mentoring and networking. Register here for exclusive pricing, available only for a limited time.

Time was when getting feedback from a customer was a process so complex, it was akin to getting blood out of a stone. Thankfully, we don’t live in those times.

Today, not only is feedback nothing more than an email away, but customers actively come to you with suggestions and ideas. In fact, theylove sharing their insights with you because they understand that the more feedback they give, the better your product becomes.

However, most of this feedback just ends up cooling its heels in hard drives, which is, well, tragic, considering all the good it can do. A motivational tool, a wall of love. . . the ideas are limited only by your imagination. Here are our top five cool things that you can spin off with customer feedback, to wow your customers and your own employees.


Are Customer Reviews Promoting Your E-Business Like They Should?

Like it or not, customer reviews are a fact of life — and their impact on your business is huge. Columnist Jeremy Smith explains how you can use this to your advantage to promote your brand.

Unless you’re just back from an extended stay in some parallel universe, you know that customer reviews are valuable to e-commerce and increasing online conversions. Even negative reviews can be helpful to you, as the purveyor of a product or service.

The value of online customer reviews can hardly be overstated, though perhaps it approaches being over-documented.


4 Ways to Make Your Customer Satisfaction Surveys Actionable

To truly understand customer feedback, you need to ask an important question: “Why?” The only way to do that: follow up.

“Please tell us how we did.”

A question like that can roll the eyes of even your company’s biggest fan.

For years, customer satisfaction (CSAT) surveys have been the bread-and-butter strategy for getting feedback.

But the big question is, are these surveys useful?

Many companies are frustrated by their surveys, in large part because they don’t know how to derive consistently actionable insights from the feedback they collect. Thousands of responses go into a database, emerging only as a graph that nobody wants to admit doesn’t drive any change.


Do you have a Business “Go Kit”?

shopliftingMany folks have go kits set up so that in the event of a storm, natural disaster or civil disturbance, they can grab their family and the Go Kit and be covered. Personal Go Kits tend to have copies of documents such as drivers licenses, birth certificates, passports, deeds…. But Go Kits can also include items to survive such as water, food, medicines, flashlights, a weapon…. These concepts used to be confined to those among us that are expecting a doom’s day interruption or ending to our society.

However, with the complexity of our society come other issues. How would you easily prove that a house belongs to you, if the area was damaged beyond recognition? Say a hurricane, flood, wild fire or earthquake? What happens if the official records are also lost? Are you going to depend on others to put your life back together again?

The same applies to your business. How will you prove to your insurance company that your inventory is valued at $XXXX if your records all disappear in a fire? The same applies to payroll records and the like. You need to have a BUSINESS Go Kit!

Thankfully this is simpler than you may think. Consider keeping your data files in a cloud environment that has multiple backups on servers that are located in multiple locations around the US. If they are on one server located in New Orleans or Miami, I would re-think that strategy. We use Google’s cloud. It costs us $5/month per employee and the redundant backups are on five separate servers in five different geographical locations in the United States.

Scan in important documents such as business licenses, insurance documents, titles, vendor documents, etc. Put them in your cloud. That way you have access wherever you are. It might be a good idea to put photos of your business, inventory, equipment and more on there, every six months or annually. Have your backups of accounting data such as Quick Books reside their also. All of this plus payroll records, taxes and more could be rebuilt but why would you want to take the time to do this when it is simply a matter of changing your habits?

Oh but “it will never happen to me” or “I will get to that tomorrow” are favorite phrases we all like to use to put something off that we know should be done. It will happen to you and it will happen “tomorrow”. An earthquake may never threaten your business but then again a data loss, PC crash probably will.

Unless you are wealthy beyond belief, then like the rest of us that are not, we depend on our business to provide for our families and life style. We will need to restore that cash flow in the quickest manner possible and with the least amount of effort to get there. Your business Go Kit will help make that happen.

It is also a good idea to keep a few extra cases of water, blankets, candles and canned soup on hand. I may be miserable but being warm, having a full stomach and a little light to read by will make it a little less miserable.


Shoplifting, Technology And The Customer’s Privacy

shoplifting4

For many retail stores the holiday season is a time when they see a huge jump in sales, and profits hopefully follow.  For many of those same stores, the problem of shoplifting is something they have to deal more than ever during this time of year.  Billions of dollars are lost due to this crime and stores spend a lot of time and money to combat shoplifting.  So, what are some of these big retailers doing this holiday season to combat this crime?  Follow the links below to read more about this topic.


Walmart’s Use of Sci-fi Tech To Spot Shoplifters Raises Privacy Questions

Retailers are scanning shoppers with high-tech tools to automatically pick out suspected thieves, absent rules to protect privacy.

In the old days, when a store caught someone stealing, a detective would march the thief to a backroom and take his picture with a Polaroid camera. The photo would be added to the retailer’s in-house rogues gallery to help store security keep an eye out for bad guys.

But earlier this year, Walmart  WMT -0.70%  showed how times have changed. It tested a system that scanned the face of everyone entering several of its stores, identified suspected shoplifters, and instantly alerted store security on their mobile devices.

The potential of such facial recognition technology has been discussed for years. But now some stores are actually using it.


Shoplifting – is it worth the price? | Your legal corner

The holiday season is quickly approaching as we begin to plan our Thanksgiving feast.  Yes, families will gather around the Thanksgiving table and give thanks once again for the blessings received throughout the year.  For many, Thanksgiving will also be the official start of the holiday shopping season.

Don’t ruin your holiday season by attempting to shoplift.  A moment of weakness is not worth the ultimate price. Shoplifting cannot only put a damper on your holidays but the penalties imposed may follow you around for the rest of your life.

Types of Shoplifting

Shoplifting can take many forms.  Most people believe shoplifting is limited to removing merchandise from a store.  However, just concealing merchandise may be considered shoplifting.  Or, what if you simply switch or alter a price tag?  This also may be considered evidence of your intent to steal and is considered shoplifting.


Legendary jewel thief caught trying to swipe earrings — at age 85!

Cops nabbed an international jewel thief who was allegedly up to her very old tricks again at an Atlanta department store.

Security personnel at a Saks Fifth Avenue store spotted 85-year-old Doris Payne — who’s been stealing pricey jewels for over half a century — on video trying to swipe a $690 pair of earrings, Atlanta Police said.

The sticky-fingered 5-foot-1, 110-pound woman was found some time later at a shopping mall next door with the earrings in her pocket, authorities said.

She was taken into custody and charged with shoplifting.

Payne, who was still in the Fulton County jail on Tuesday, was the subject of a 2013 documentary titled “The Life and Crimes of Doris Payne.”


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

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

Hire the right person

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

Pay for performance

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

Training

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

Set expectations

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

Motivate, Motivate, Motivate

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

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

Communication

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

Weekends/scheduling

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

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


ANNUAL INVENTORY BEST-PRACTICES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Shoplifting Problems Today

shoplifting5

Shoplifting is a problem that affects retailers worldwide. In the United States shoplifting is a problem that affects the retail industry tremendously. Millions of dollars are lost daily due to this problem, and although legislation about this problem continues to change to punish the perpetrator accordingly, the problem is far from disappearing.  The rules and regulations about shoplifting that are to be observed by the management and employees of your store should be reviewed regularly to ensure they reflect the times and views of the owners of the retail store.

For more about this and other news follow the links below.


Indianapolis shoplifting suspect dies in police custody after breathing problems

Indianapolis police said they were investigating the death of a shoplifting suspect who complained of breathing problems.

The man died in the back of an ambulance on Saturday afternoon after being arrested by the Indianapolis metropolitan police department (IMPD) and Cumberland police department, the IMPD said in a news release.

The man told officers he was having trouble breathing and an ambulance was summoned. The medical crew assessed the man and determined he could be transported to the city’s arrestee processing center, but while in the back of a jail wagon the man again complained of breathing problems.

A second ambulance was called, but the man’s condition quickly deteriorated and he died despite attempts to save his life, police said.


Walmart employees in hot water over video of suspected shoplifter

ARLINGTON, Texas — Walmart employees who confronted a suspected shoplifter in a Dallas suburb may now be in trouble themselves, reports CBS DFW.

A cashier recorded the incident in North Arlington, which was posted on a Facebook page for Walmart employees. It appears to show a woman shoplifting and employees taunting her and grabbing her bag on her way out of the store.

The video then shows an unidentified woman walking up to the suspected shoplifter outside the store and and starting to fight with her.

One of the employees involved has resigned and an investigation is underway, CBS DFW reports.


Retailers call for legislation amid rise in shoplifting in Dublin

Retailers are lobbying the Government to introduce tougher penalties for repeat shoplifters as gardaí reported a 40 per cent increase in the activity in inner city Dublin.

A Dublin central Joint Policing Committee was told this week that overall property crime, such as burglaries, car thefts and shoplifting, was up by 8 per cent in the division.

Chief Supt Pat Leahy told the meeting that burglaries and car thefts were down this year but a sharp increase in recorded shoplifting had brought up the total.

He said the apparent increase in shoplifting coincided with a change in the way the crime was recorded.

“Every single incident of shoplifting now is recorded as a crime. Whether it is a lipstick or it is a €400 jacket, it goes in as a crime,” he said.


Using Technology To Prevent Shoplifting

theft (12)Shoplifting is an issue with lots of bad ramifications.  The shoplifting that many businesses experience is financially devastating for the business, local and US economies. The financial burden that small business owners experience due to shoplifting can be hard to overcome.  Profits are slim in some cases and the shoplifting and employee theft can make a small retail business close its doors for good. For more about this and other topics, follow the links below.


Why Inventory Tracking Software Is a Critical Investment

Running a small business often means making tough decisions about how to spend and where to invest your limited capital. From inventory shrinkage to supply and forecasting challenges, an effective inventory tracking system and software is a critical company investment.

If you don’t track your inventory, you have no way of preventing employee theft, and trying to create your own inventory system using a spreadsheet program like Excel is time-consuming, error-prone, and rarely effective.

These days, it is relatively inexpensive for a small to medium-sized business to get its own inventory tracking system with the latest software. When you consider the potential costs of not tracking your inventory, it’s a no-brainer.

Beating Inventory Shrink

In 2014, inventory shrink resulted in over $44 billion in losses for retailers, over 50% of it the result of internal theft, administrative errors, and unknown causes. Internal theft alone accounts for 34.5% of inventory shrink. Administrative errors make up another 16.5% of shrink. These can be significantly reduced through the implementation of effective inventory software and systems.


Owner: Shoplifting ‘not a victimless crime’

Owner’s experience shows the toll that shoplifting takes on small businesses.

BY SPENCER PARTS RALEIGH NEWS & OBSERVER

CARY, N.C. — In early July, designer dresses, slacks and jackets valued at $3,000 were stolen from ADORE Designer Resale Boutique in this Raleigh suburb, one of Nancy Alinovi’s two consignment shops in the area. She still feels sick about it.

“It’s just this feeling in your chest,” she said. “It’s not a victimless crime.”

Alinovi said it will be months before everything returns to normal at the family-owned boutiques, which cut prices in order to stay afloat after the theft. Her experience shows the toll shoplifting takes on small businesses, where margins are small and business is personal.

According to a National Retail Federation’s security survey, shoplifting accounted for 38 percent of the $44 billion in retail inventory loss due to crime in 2014.

Large capital losses from theft are especially hard on small businesses, said Jennifer Martin, executive director of Shop Local Raleigh, an organization that advocates for and supports small companies. Many smaller firms are tight on time and money, and an unexpected event can push them to the breaking point.


Security systems know all the self-scan tricks

MOUNT DORA — Last August, a 58-year-old woman, using a self-checkout station at Wal-Mart in Leesburg, allegedly was seen placing two items in her hand before scanning them so the scanner could not record the barcode and charge her for the blocked item.

Assuming she was being watched from afar, she also allegedly waved items too far away from the scanner for it to record a sale but made it look like she was using the equipment as intended.

On Saturday, a 30-year-old woman allegedly tried a couple of other ways to beat the system at Wal-Mart in Mount Dora, concealing items inside a sweatshirt and even a backpack she self-scanned.

Neither got away with it and face theft charges because retailers know all the tricks and have self-check security systems in place to detect them, according to the website retailtouchpoints.com.