mobile POS loss prevention

Retail Alarm System Tips and Tricks; Do’s And Dont’s

September 7, 2016 by Staff Editor Leave a Comment

Retail alarms are necessary to ensure a store is protected against break-ins and even theft from within. I know from personal experience that they work. As a Loss Prevention Manager I once had to respond to a burglary alarm when two young men threw a cement block through the front doors of my store in the middle of the night. I also responded to a number of false alarms due to system errors and failures. As a Manager On Duty I know that it can be stressful wondering if you locked all the doors and set the alarm at the end of the night. With those situations in mind, I would like to provide some practical tips to help avoid excessive false alarms and worry about building security.

Schedule regular alarm tests for your store(s). Doing a walkthrough test once a month is good practice. This can be done by the store owner or management before the start of a business day or after close when customers and employees have left.
Have two people conduct the alarm test. They can walk the building together or one can stay near the alarm panel and monitor the alarm points or zones as they are activated.
Your alarm system should be monitored by an alarm company. Notify them when you are starting and ending your alarm test so they don’t request a false police response. At the end of the test ask for a copy of the test results. They should be able to provide a digital copy to you with a day or two.
Have at a minimum, an annual alarm inspection by a technician from the alarm company or one of their certified contractors. They can do a more detailed inspection of alarm sensors and contact points, making sure there is no excessive wear and tear or damage due to moving parts.
Have a current list of building alarm responders on file with your alarm company and the police department responsible for the jurisdiction where your store is located. Should a key holder/responder leave, make sure the list is updated. This goes for phone numbers as well. There is nothing more frustrating for a dispatcher than to call an out of service number or a call list that is no longer current.
Have employees conduct a final walk of the building at the end of the day when the doors are locked. Check restrooms and off-stage areas, including break rooms and janitor closets to make sure no one is “hiding out,” waiting for employees to leave so they can steal and run out through a fire exit.
Have at least two people close the store. They can look out for each other as they leave and verify doors are locked and alarms are set.

DON’T

Schedule alarm tests for the same date every month. Establishing patterns can tip off a potential robber of when the alarm system will be in “test” mode and not active for a police dispatch.
Allow someone to conduct an alarm test alone. For their safety it isn’t good practice to leave a person alone in a store or building. Remember, there is always safety in numbers.
Ignore an alarm zone issue. When setting the alarm at the end of the night, if an alarm zone fails to set, don’t automatically try to bypass it. You should have a zone description list that identifies where the alarm points are located. Check the point, making sure that door is secure. If you cannot identify the problem for the night, contact your alarm company, describe the issue and arrange for a technician to come out the next day. They can help you shunt the one zone while still alarming the rest of the building. Call your local police department and ask for a police check once or twice that night. Let them know you are having an issue with your alarm system. Most departments are willing to send a patrol by at least once to check your store.
Finally, don’t automatically respond to a phone call that your alarm is going off. Ask for a call back number and the caller’s name. You should have the alarm company phone number available, call them and verify the alarm activation and the name of the person who called you. If you are responding to an alarm, call the police and ask if someone can meet you at the building. Stay in your vehicle until an officer arrives, then enter together. NEVER enter the building by yourself when responding to an alarm.

Following these retail alarm system tips you will be able to sleep easy at night knowing you are protecting your business AND your employees.

Safety First

August 10, 2016 by Staff Editor Leave a Comment

3 Walmart Employees in Florida Face Charges in Death of Shoplifter -This is one of the many cases where employees or shoplifters die when a shoplifting incident occurs. It is not news anymore. It is too common to surprise people, and shoplifting as a social problem is not getting any better. As a retail owner or LP officer, what are some of the solutions that we need to be aware to mitigate these incidents in our store? Is the store layout a solution? More greeters at the door? More LP personnel? The billions of dollars lost due to shoplifting increases every year, and the loss of lives doesn’t seem to get any less. Do you need personnel training for your store? System solutions to help you with shoplifting? Contact us to help you reduce your loses and increase your profits.

The Mobile Side of Retail Loss Prevention

Today, retail loss prevention’s focus has grown from preventing the loss of inventory within a retailer’s stores to a variety of other activities ranging from HR challenges, crisis management, emergency situations and disaster recovery. However, the process for communicating emergency preparedness procedures with employees has remained stagnant. This could result in a tremendous loss in operations and profit for retailers. With brick-and-mortar retailers fighting for every dollar against growing online and mobile sales, empowering employees at each store location to protect assets has now reached a critical level.

Working with associations like the National Retail Federation, which recently addressed these issues at their loss prevention event NRF Protect, most retailers build robust loss prevention, risk mitigation, and emergency preparedness plans.

While corporate management makes a concerted effort to distribute these guidelines to each store manager, nine times out of ten, these plans are extensive paper-based manuals, posters, flip books, building diagrams, and websites that are too cumbersome to access quickly. Even worse, they are often lost or filed away in a drawer and not available when an issue arises.

LP101: Embezzlement in the Retail Environment

Embezzlement is a crime that involves a breach of trust.

Embezzlement is a type of theft involving a person or persons entrusted to property owned by someone else (such as an employee) who then uses fraudulent means to illegally misappropriate the property or cash entrusted to them.

Embezzlement is a breach of the fiduciary responsibilities placed upon a person. In this type of fraud the assets are originally under the control of the person lawfully, but the person then uses the assets for unintended purposes.

For example, a Cash Office Manager would be authorized to have control over cash in the cash office for business purposes and management. However, if the Cash Office Manager took possession of cash and illegally removed it from the cash office for their own personal use, this would constitute a form of embezzlement. If an attorney has control of an individual’s assets in order to manage their financial affairs, but misappropriates some or all of their client’s money into the attorney’s personal bank account, this would constitute embezzlement.

Elements common to embezzlement would include:

The assets must belong to someone other than the accused (such as an employer)

Store Worker Fatally Shot Trying To Prevent Shoplifting

CHICAGO (CBS) — An employee was shot and killed while trying to stop a person from shoplifting on the South Side.

The victim was working at a Family Dollar store in the 7900 block of South Ashland in Auburn Gresham when he was shot around 5 p.m. Tuesday.

When confronted, the shoplifter pulled out a gun and opened fire, hitting the worker in the chest, police said.

The 30-year-old man was pronounced dead at Advocate Christ Medical Center in Oak Lawn.

Customers said the victim was Jquinn McCune, the store’s manager.

“I’m so sorry this happened to him,” said Matthew Hobson. “I mean, he was a great, great inspiration to the young people in the neighborhood. He tried to get along with everybody, looked out for everybody.”

The man who fired the shots fled on foot in unknown direction

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft tags, EAS Devices, Georgia shoplifting prevention, Georgia shoplifting systems, Loss Prevention Training, Loss Prevention Workshop, mobile POS loss prevention, Perpetual Inventory, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

Sometimes We Simply Do Not See The Obvious

August 3, 2016 by Staff Editor Leave a Comment

Sometimes we simply do not see the obvious even when it is right in front of us. For many years we have worked really hard to hide or disguise Checkpoint Labels. The thought being that the shoplifter will not be able to locate and possibly defeat the label.

But new studies show that although that is still a great strategy, you should also look at the opposite. Putting a clearly identified label in plain sight with a warning on it.

Here is a good example using one of the newer clear, Checkpoint Systems stock labels. The trademarked “lock” and wording has been tested extensively.

Rather than bore you with all the details of the study, I will simply tell you that it works and works well. Visible tagging can increase sales and reduce loss. The last study found:

As many of you know I, Bill Bregar have been in the loss prevention field most of my career. So now putting that hat on let’s look at this from another view. We know that shoplifters are broken into three distinct groups; Impulse, Amateur and Professional.

The bulk of shoplifters you encounter are Impulse. I teach this in my shoplifting classes, which by the way I conduct live, in person or by webinar and are FREE of charge to Loss Prevention Systems customers. I always explain that Impulse shoplifters are easily deterred with employee contact. In other words if you greet the Impulse shoplifter with eye contact, a simple hello and “can I help you”, many studies show that the Impulse shoplifter will most likely NOT shoplift during that visit.

Well if we now apply the thought of a Checkpoint Systems visual deterrence label it makes sense. Given the same circumstances where the Impulse shoplifter has not been greeted but is faced with a visual deterrence label it casts enough doubt into their minds that they do not steal.

Well if that is the case then why doesn’t a sign like this work?

Besides being funny to us I have learned that signs do very little. Probably because of sign “pollution”. They either don’t see it or it is really not a threat. But a specific label on the merchandise they are considering stealing, casts doubt. They do not know what other element may be protecting that merchandise.

Something to consider! If you would like some samples of these labels just reach out to us. We will get them in the mail to you at no charge.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Loss Prevention Seminar, Loss Prevention Training, Loss Prevention Workshop, mobile POS loss prevention, Prevent Shoplifting, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

You Are Losing More Money Than You Realize

June 30, 2016 by Staff Editor Leave a Comment

Yep, you probably are! The shoplifter that walked out the door with your $45 item cost you MORE actual money than $45!

Many Retailers do not understand the actual impact of theft. For example:

You experience a $45 loss (shoplifting, employee theft, vendor fraud…). Is that $45 the total impact on the bottom line? Nope, you actually lost $2,250.00 in real money.

For your organization to simply recover or break even on a $45 loss, you would have to sell an additional $2,250.00 to break even! ($45.00 divided by .02% profit margin). This is on top of your normal sales.

WOW, how many more items are you going to have to order, receive, count, mark, prepare paperwork for, stock, and finally sell just to produce these extra sales? Theft/Shrinkage really cannot be recovered from because you should have had those sales to begin with.

Add to that the loss of sales because the stolen item was not available for sale to a legitimate customer.

You then begin to understand why one third of U.S. business failures are blamed on theft.

The obvious solution is to prevent the theft (we can help with that), errors and abuse that cause loss in the first place.

Loss vs. Sales

So if we assume for a moment that your company has a 2% bottom line net profit margin. Two percent is considered an overall retail normal margin. Yours may be higher/lower. The net profit is your final profit after all expenses such as payroll, payment to vendors, rent, taxes, utilities….

The chart below shows the sales required to replace losses due to theft:

AMOUNT OF LOSS 2% PROFIT MARGIN SALES

NEEDED TO REPLACE LOSSES

$100 $ 5,000

$500 $ 25,000

$ 2,500 $ 125,000

$ 5,000 $ 250,000

$ 7,500 $ 375,000

$10,000 $ 500,000

$12,500 $ 625,000

$15,000 $ 750,000

$17,500 $ 875,000

$20,000 $1,000,000

Inventory shrinkage cancels millions of dollars in sales. That means all of your hard work for an entire year can be wiped out by a single loss. Loss Prevention Systems can fix your shoplifting problems!

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, employee background checks, Employee Theft, Georgia shoplifting prevention, Georgia shoplifting systems, Loss Prevention Seminar, Loss Prevention Workshop, mobile POS loss prevention, retail security and monitoring, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

EXACTLY HOW DO YOU LOSE MONEY TO CREDIT CARD FRAUD

June 30, 2016 by Staff Editor Leave a Comment

You have (or I hope you have) read the last article on preventing check fraud. It’s a great way to protect your business from a different avenue of fraud. Another, much more popular and prevalent scheme is credit card fraud. The United States lags far behind the other major countries in the fight against credit card fraud. We’ve only just begun adopting chip and pin technology and it will be several more years before we see magnetic strips become a relic of the past. So exactly how can you identify and prevent a fraudulent change from happening in your store and how exactly do you lose money on these transactions?

Credit card fraud is the one of the biggest, single fraud scheme affect my stores. While the criminals evolve their tactics quite often, there are some general rules you can follow to identify possible fraudulent transactions.

Large Dollar Gift Card Purchases| Normally, a legitimate customer will not purchase 3 $500 in back-to-back transactions with 8 different credit cards. This is a red flag and should involve management immediately.
Multiple Transactions with Multiple Credit Cards| This is another red flag that could help you identify criminal activity. The average American owns about 3 credit cards. If you have an individual using 5-8 credit cards to make several big ticket purchases, then you’re probably dealing with some fraud.
The Credit Card Lacks the Eagle Hologram|Holograms are hard to fake (although I’ve seen some really good ones). Often, the counterfeiters will skip over this step, so I always look for the eagle.
Typos| Since a lot of counterfeit cards come from manufacturers overseas, every now and then, you can spot a typo on the bank’s name, or even the credit card company (I’ve personally seen “MasterCard” about a dozen times.)
Verify ID on all purchases over $X. Now this one is tricky. About 3 years ago, this was an easy, sure fire way to spot a fraudster, as the ID and the card name would not match. Over the past 18 months, we have seen these groups become highly sophisticated in this area. They will now very often, imprint the actual name of the criminal on the card. They also imprint the card with an account number that is not the account number that is embedded in the magnetic strip, which makes identifying the card as fake at the point of sale almost impossible.

So now you have a few best practices to use in your fight against credit card theft, but you may still be asking yourself, “Why should I care? Then bank covers the loss to the customer anyway.” While that statement is absolutely true, the banks will then issue a “charge-back” to the retailer that accepted the fraudulent purchase. This means you can be out thousands upon thousands of dollars if you’re not proactive in your approach to identify and prevent fraudulent credit card purchases in your store.

Essentially, what that means is the criminal impacts two people; the customer that is a victim of identity theft and the retailer that must then cover the cost of the transaction. For a large corporation, it may not be a big deal to dole out tens of thousands of dollars per month in chargebacks, but to a small business owner, even a few hundred could make the difference between being in the red, or black.

My best advice to you is that you follow the guidelines above and update your POS systems to accept the new chip and pin technology. Hopefully, in the coming years as the old tech is phased out and the more secure chip technology takes over, brick and mortar credit card fraud will be a distant memory. (Online fraud, however will take center stage… but I’ll save that for next time.)

Is Technology The Answer To Shoplifting And Employee Theft?

June 15, 2016 by Staff Editor Leave a Comment

What is the solution to shoplifting and employee theft? Are harsher punishment by law the solution to this devastating social problem? Technology aimed to help retail stores prevent this problem do not seem to be helping yet. As the technology advances, so does the professional shoplifter. Meanwhile the losses due to shoplifting and employee theft are becoming retailers greatest problems to date.

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

Shoplifting: Retail’s $45 Billion Problem

Retailers are struggling to keep tabs on shoplifters who are increasingly becoming their top source of loss, averaging $377 per incidence, up $60 from the year before.

At 39 percent, shoplifting was found to be the biggest contributor among factors that led to overall inventory shrinkage in 2015 causing a $45.2 billion loss across the United States, according to NRF’s 2016 National Retail Security survey. The new numbers reflect a $1.2 billion increase in losses from 2014.

The inventory shrink averaged 1.38 percent of retail sales and saw 47 percent of retailers reporting losses in 2015.

“With a constantly evolving retail landscape, loss prevention becomes more complex every day,” said NRF Vice President of Loss Prevention Bob Moraca. “LP professionals have been working diligently to find advancements in technology aimed at deterring crime in our industry, sometimes even before it happens – but as our techniques get more sophisticated, so too do the criminals.”

Another factor adding to inventory shrinkage was a rise in robberies that exclusively targeted jewelry stores. The average loss reported by robbed stores increased from $2,465 per incidence in 2014 to $8,180.17 last year.

RETAIL INVENTORY SHRINKAGE INCREASED TO $45.2 BILLION IN 2015

The 2016 National Retail Security Survey, conducted in collaboration by the National Retail Federation and the University of Florida, reveals that retailers’ inventory shrink averaged 1.38 percent of retail sales, or $45.2 billion in 2015, up by $1.2 billion from 2014.

According to the report, 47 percent of retailers surveyed reported increases in overall inventory shrink in 2015, with shoplifting accounting for the greatest cause with an average loss of $377 per incident (39 percent), up nearly $60 from 2014.

Robberies continue to be a growing expense for retailers, costing an average of $8,180.17, up from $2,465. The rise in robberies in 2015 was driven by an increase in jewelry stores reporting extremely high average losses.

Gieves & Hawkes Installs RFID to Prevent Shrinkage, Track Inventory

The U.K. men’s wear retailer is using a solution from Catalyst to invisibly secure the doorway at its two newest stores, and to make sure its products are always in stock.

Apr 05, 2016—

To improve inventory visibility and prevent loss, men’s clothing retailerGieves & Hawkes has deployed a radio frequency identification system at its store in Birmingham, England. The solution tracks goods as they are received and stored in the back room or store front, then prevents unpurchased merchandise from being taken out the front door by sounding an alert, as well as storing data regarding which item is being removed. The company is expanding its RFID deployment to its newest store, located in of Hackney, an East London borough. The technology is provided by RFID solutions companyCatalyst. Both Gieves & Hawkes and Catalyst are owned by Li & Fung.

Gieves & Hawkes is a high-end men’s custom and ready-to-wear clothing retailer based in London, with more than 200 stores in China alone, as well as eight stores in the United Kingdom. The company was founded in 1771, making it one of the world’s oldest tailors. Britain’s royal family and royal military have worn its custom suits and clothing for several centuries. (Gieves & Hawkes did not respond to requests for comment.)

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-thefts devices, EAS Devices, employee background checks, Georgia Alarms systems, Georgia shoplifting systems, Loss Prevention Seminar, mobile POS loss prevention, Prevent Shoplifting, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

COMMON SENSE TAGGING

March 17, 2016 by Staff Editor Leave a Comment

You know, sometimes we seem to overthink EAS tagging. Very often, I find that my store managers will focus so heavily on tagging a small, inexpensive (but high shrink) item, that they completely overlook the big ticket item that is absent of any physical security measure. Why is that? A large cooler is just as susceptible to loss as a pair of socks. Maybe it has to do with the perception of what is driving shrink in our stores.

Just last month, I hosted a district LP conference for store managers in my area. I asked each store manager to write on a sheet of paper what they felt their highest shrink item was in there stores. The results were pretty shocking. Not a single one got it right. Heck, they weren’t even close. Most of them hovered around the small items that they knew were being stolen on a daily basis; like pocket knives, wrist watches, socks/underwear, etc. These are also the areas that they are focusing their EAS tagging at.

What most didn’t realize was how high their highest shrink categories actually were. So what I found was that they all had a perceived vision of shrink in their store, and instead of using the reporting given to them, they were mostly making business decisions based off of their own emotions. We all know how that can end up, right? So how can you avoid falling into this trap?

Most companies give their managers some level of reporting that showcases their sales as well as shrink. It’s best to use these reporting tools to help plan on what you’re going to tag with an EAS device. For example, if you’re looking at your shrink report and each week you have hundreds of dollars of losses in a certain style of headphones, well it’s probably time to wrap a Spider Wrap around them.

Additionally, sometimes, you have to use your years of experience in order to be pro-active to potential losses. Let’s say your in store reporting shows you have historically seen losses from high end footwear. It’s spring time, and you begin to receive this year’s new high end shoe line. It would probably be a wise idea to tag these before they have a chance to walk off, right? Of course! The same could be said for hundreds of products in your store.

Don’t overthink your EAS tagging methods. If you have a product that is suffering from theft, then tag it. Don’t wait for someone to tell you to do so, and don’t sit back idly while your profits walk out the front door. The reason EAS tags were invented was to save you money. Let them do their job, so you can continue to have yours.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, anti-theft devices, anti-theft tags, EAS Devices, Georgia Alarms systems, Georgia shoplifting systems, Loss Prevention Seminar, Loss Prevention Seminars, Loss Prevention Workshop, mobile POS loss prevention, Prevent Shoplifting, Retail Anti Theft Devices, Shoplifting Prevention, surveillance

Shoplifter Quick Tips

December 11, 2015 by Staff Editor Leave a Comment

Since 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!

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Loss Prevention Workshop, mobile POS loss prevention, prevent shrinkage, Retail Anti Theft Devices, retail security and monitoring, security devices, Shoplifting Prevention, surveillance

THE IMPORTANCE OF CUSTOMER SERVICE

November 11, 2015 by Staff Editor Leave a Comment

For me, this is the last week of the 3^rd quarter. It’s already that time of year once again. In just a few short days, the 4^th quarter will ramp-up and shoppers will be in a tizzy as they check their loved ones off that holiday wish list. I just read a national report that predicts consumer spending this season will be at its highest point since 2008. That’s fantastic news to us retailers. We are poised to post some record sales in the next three months, provided that we execute to our fullest potential. What keeps the customer coming into your store? Is it your customer service levels?

I am a champion of customer service. Like many before me, prior to my LP career I was a store manager for a big box retailer. You can set all the POGs, put up all the proper signage and all those other corporate tasks, but you will find yourself on a lonely island if your store is not customer centric. It’s a two way street. Attentive and responsive employees will help drive sales. They will also reduce shrink.

Take for example a customer shopping for a treadmill. Sure, they could come into the store, pick out the item themselves and cart it out. You just made a $500 sale and you really didn’t have to work for it. Did that customer get the foam mat to protect their floor? What about the silicone lubricant for the belt? How about a new pair of running shoes to prevent an injury, or even some fitness supplements to help them with their workout routine? What if by not speaking with someone on your staff, they purchase a treadmill that doesn’t fit their activity level? You may have very well left an additional $50-$100 on the table in add-on sales. Why would you leave all these extra dollars out there?

My company, like so many others, runs a survey. Customers can call in the number on the back of the receipt and share their in store experiences. I often review these for opportunities in the store. One thing I see the most is that customers feel “ignored”. Is it so hard for our employees to simply greet a customer? I see it so often. Employees who are too task oriented, who whizz past our customers without as much as a greeting. Do you see that in your store? Is it acceptable?

Let’s talk shrink. This is an LP centered magazine, right? Do you know that the very best method for reducing shoplifting losses is? If you guessed customer service, give yourself a pat on the back. First and foremost, a thief never wants to be acknowledged. If your employees are engaging and monitoring their areas, a thief will not have the opportunity to steal your merchandise. When my LP team completes a shoplifting report, there is a checkbox at the end of the report. It asks simply if the suspect was ever provided customer service by an employee. When I get those reports that say “no,” I use that shoplifting incident as a tool to coach the managers of the store, and show them a customer service failure. By training your employees to give high levels of customer service, you can and will deter criminal activity.

Customer service isn’t just telling a customer hello. It’s about each and every employee going the extra mile to satisfy your customer. Every single person that comes through your doors has a choice. They are choosing to give you their money. You, as a manager, should be honored by that choice. You should make it a core philosophy in your building that the customer is the most important aspect of your business. Strive to be the store that people will shop at, no matter the distance from their home. Engage your customers, leave no money on the table and be proactive in reducing shoplifting losses. Remember, customer service means money in your pocket and less product walking out the doors.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Spider Wrap, anti-theft tags, employee background checks, Employee Theft, Georgia shoplifting prevention, Georgia shoplifting systems, mobile POS loss prevention, POS ROI, Prevent Shoplifting, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security, retail security and monitoring, security, security devices, shoplifting, Shoplifting Prevention, shoplifting statistics, shoplifting violence, surveillance

EMPLOYEE THEFT MOVES INTO ONLINE MARKETPLACES

August 8, 2015 by Staff Editor Leave a Comment

This past month, I closed out one of the biggest employee theft cases of my career thus far. While it was quite exciting and a huge win for my team, it left a lot of questions about our internal controls, that after this case, surely must evolve. Lots of people that I come into to contact with really misconstrue the facts regarding employee theft. You’ve heard the phrase before… “You have more internal theft than external theft.” Every time I hear this phrase, I find myself trying to educate the manager on this. While most people assume that 75% percent of their employees steal, realistically, only a very small percentage of employees engage in this behavior. Those that do though, create a substantial financial loss to the company.

As part of my investigative routine, I normally check online sale sites for possible stolen merchandise. Selling stolen product online is most likely to quickest and easiest way to get rid of goods in a hurry. As I was browsing through I noticed a pair of wireless headphones that had just hit our stores. Interesting enough, the item still had our company markings on it. From there I was able to quickly identify the geographical area and before long I was able to identify the owner of the page. That owner was a warehouse supervisor at one of my stores.

Well, it didn’t take long for me to find quite literally, hundreds and hundreds of items either that had previously been sold, or were up for sale on this website. Lots of these items were electronics such as cameras, headphones, accessories, phone cases and other large bulk product such as coolers and outdoor furniture. Looking at the store’s inventory I could tell that some of the product had in fact come from that location. Over the course of several weeks, I initiated several online purchases. Most were for electronic devices that had a serial number. Once received, I was able to determine that the items did in fact belong to that store and those particular items were not accounted for. I had made my case.

How was this associate getting this much product out the door without anyone noticing him? I still didn’t have that piece of the puzzle. Without enough ammunition for prosecution, I interviewed this supervisor to determine how he was obtaining this much product. I knew it was stolen, I just didn’t know by whom and in what manner. What I uncovered during this interview was one of the most sophisticated and organized theft operations I have seen in my career.

That particular store was also a hub warehouse. This means that online purchases made by customers in a certain geographical area would be sent to our store and warehouse to fulfill. This of course gets the item to the customer much faster than going through our centralized distribution center. Once the order was filled for a customer, it would be packed and set in a designated area and a private mail delivery service would pick up once a day.

The supervisor had gained access to the shipping account, so he was able to ship product out without anyone second guessing the boxes. At first, according to our records and his online account, he was shipping merchandise directly to his customer’s houses. He said that he thought that was a bit risky and ultimately began shipping massive quantities of merchandise to a vacant home close to his. Each day, he would pass by and take the packages from the porch. From there, he would run his online store. This had been going on for the past two years. This one employee, working alone had taken nearly $250K worth of merchandise over this time period.

With the dishonest employee out of our store, we focused on what went wrong. We began a program of inspecting all boxes and shipments prior to them being sealed and implemented a system that a number of shipping boxes each day could be verified. We also set up exception style reports that showed any time a delivery was sent to the same address more than 5 times a month. This was a costly lesson for us to learn and hopefully with better controls and more oversight, it will never happen again.

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