Motivated Employees are Vigilant Employees

meetingpic.If you’re in retail management, and if you’ve been paying attention, you know your employees are the first line of defense against both internal and external fraud.  Employees who are satisfied with their jobs are much more likely to care about co-worker and customer theft.  They’re more vigilant and report it more often than those who are unhappy with their jobs.

And yet, most managers don’t know how to motivate others.  They don’t understand that effective motivation skills need to be learned and practiced, just like other valuable management skills.  Supervisors who are interested in creating a productive work environment will learn the helpful techniques.

There’s no “one size fits all” magic process – below are 5 of the most common ways people are motivated.  Employees can be motivated by a combination of these approaches; none of them are better or worse than the others, they’re just different.  Everyone has a preferred way of being motivated and they respond more positively to their way. 

Words – People motivated by language need to hear or read words of affirmation.  Link the words of appreciation to a specific task – “Thank you for being so attentive to that customer” or “I appreciate the creativity you put into that display”.

Time – The opportunity to spend time with and talk to management, one on one or in a small group, is important to these types of employees.  They need a meaningful way (quality time) to interact and feel listened to.

Deeds – These are people who are motivated by actions showing appreciation or interest: actual pats on the back, getting them a cup of coffee, letting them leave early on a bad weather day, point out their favorite donut is in the box, etc.  Be careful about this one, at all times be professional.

Need for Community Employees who have a need for community want to be part of the group.  They organize the softball game, Secret Santa and birthday parties.  They’re motivated by being part of a team and respond to activities that support teamwork.

Monetary Rewards – Contrary to popular thought this is one of the weakest motivational tools; most people are motivated by non-monetary methods.  Employees who are motivated in this manner respond to raises, sales contests, gifts tied to quotas, bonuses for performance, etc.

It’s important to note that some workers will reject positive management intervention, but they’re the minority.  Most employees will respond to one or more of these techniques.  Mangers that put time and effort into developing motivational skills will make their jobs, and personal relationships, easier and more rewarding.


Nicole Abbott is a professional writer who’s had over 200 articles published.  She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction.  She’s a coach, lecturer, trainer and facilitator.  She has conducted over 200 workshops, trainings, presentations, seminars and college classes. 

What Shoplifting Costs The Taxpayer

Money1

The financial damage shoplifting does to the retail industry is measured in billions of dollars every year.  For the tax payer, the financial burden that they have to endure due to the constant calls made by retailers to the police due to shoplifting is equally damaging.  Walmart is one of the retailers with the most call to the police due to shoplifting incidents, and it is unlikely things will get any better. 

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


Macy’s barred from detaining, fining New York shoplifting suspects

An injunction was granted this week barring Macy’s stores in New York from detaining and fining suspected shoplifters in response to a class action lawsuit, according to court records from the Supreme Court of the State of New York.

The lawsuit filed by Cinthia Orellana and later joined by Samya Moftah claims the loss prevention units in some Macy’s stores in New York operate “like a typical jail, equipped with holding cells.”

The women claim they were detained, coerced into signing confessions and forced to pay to be released, all before law enforcement involvement, according to court documents.

Officials for Macy’s, headquartered in Cincinnati, have told multiple media outlets that its loss prevention practices have changed since the women’s alleged incidents.

Judge Manuel Mendez stated that New York law allows a business to detain suspected shoplifters for the purposes of investigation and questioning and allows businesses to fine shoplifters five times of the cost of the merchandise up to $500.

However, Mendez suggested Macy’s was pairing the laws unfairly.


Cop Quietly Pays For Family’s Essentials After Shoplifting Bust

A kindhearted cop in Redmond, Washington, came to the rescue of a family after the mother and father were allegedly caught trying to shoplift essential items for their children.

The Redmond Police Department officer stepped in after managers at a Target store decided not to press charges against the couple, reports local station KING.

He quietly took the diapers and clothing, which the parents were accused of trying to steal for their two kids, aged 8 years and 4 months, back to the checkout.

After paying for the items from his own pocket, he handed them back to the family and informed them where they could go to obtain more help.

News of his act of kindness emerged after an eagle-eyed police supervisor spotted the details in a shoplifting report. The department posted an excerpt from the account on Twitter.

Sometimes our officers don’t tell us everything,” the post stated. “An attentive supervisor spied this in a recent shoplifting report.” It is now going viral.


Crimes at Jacksonville’s big box stores last year cost taxpayers $75K

Most calls at Walmart deal with shoplifting.

ACKSONVILLE, Fla. – Police officers in Jacksonville spent 3,533 hours — the equivalent of 147 days – responding to petty crimes at Walmart stores in Jacksonville last year, I-TEAM research found.

Officers spent another 667 hours working shoplifting and other minor calls at Target stores in the city.

An analysis of data from the Jacksonville Sheriff’s Office found 5,298 police calls to the 15 Walmart stores in Jacksonville in 2015 – five times the number of calls to the eight Target stores in the city.

The Walmart on Normandy Boulevard had the most calls: 864. Shoplifting made up half of those calls, followed by thefts, then disputes.

The Walmart store at 103rd Street came in second and had 668 police calls for service last year, with the a similar breakdown of offenses.


 

Shoplifting; A Social Problem With No Clear Answers

shoplifting1

Research for many years now, have found that the  best way to prevent shoplifting is through customer service. If people are greeted by the store personnel as they enter the store, they are less likely to shoplift.  The retail industry’s billions of dollars lost every year due to shoplifting and employee theft, are a social problem that they have no answer to, and regardless of how much they invest in technology, the problem seems to be getting worse not better.

For more about this topic follow the links below.


Bamboozled: The job that could get you arrested

Mystery shopping gigs are real, but they’re also a common job title you’ll see when a scammer is looking for a victim.

And now, fraudsters are giving this job scam a new twist. One that could land you in jail.

But first, the real thing.

Retailers will hire “mystery shoppers” to visit their businesses — unbeknownst to the employees — for an objective look at the shopping experience. The mystery shopper will be instructed to look at specific things about a business, and then go back to the company to report his or her experiences.

Mystery shoppers are typically paid a fee for their time, and they’re also reimbursed for items that are purchased during a store visit. These amounts are often pre-approved by the company that hires the shopper.

The fakes work differently.


Crimes at Jacksonville’s big box stores last year cost taxpayers $75K

Most calls at Walmart deal with shoplifting.

ACKSONVILLE, Fla. – Police officers in Jacksonville spent 3,533 hours — the equivalent of 147 days – responding to petty crimes at Walmart stores in Jacksonville last year, I-TEAM research found.

Officers spent another 667 hours working shoplifting and other minor calls at Target stores in the city.

An analysis of data from the Jacksonville Sheriff’s Office found 5,298 police calls to the 15 Walmart stores in Jacksonville in 2015 – five times the number of calls to the eight Target stores in the city.

The Walmart on Normandy Boulevard had the most calls: 864. Shoplifting made up half of those calls, followed by thefts, then disputes.


Police Cars Parked Along Admiral Wilson Boulevard In Effort To Prevent Crime

CAMDEN, N.J. (CBS) — For weeks, marked police cars have been stationed at businesses along Admiral Wilson Boulevard in Camden.

Two police cars have been parked around the clock at gas stations along Admiral Wilson Boulevard. Generally, there are no officers in the cars. Camden County Police Chief Scott Thomson says it’s designed to deter crime from robberies to shoplifting to graffiti.

“It’s a reminder to those that may be up to no good — whatever it may be on that spectrum of illegal activity — that we’re nearby, and that we’re watching at all times,” he said.

Thomson says the cars are part of a wider bid to work withbusiness owners to address blight and dilapidated properties in neighborhoods.

“We were seeing an increase in the amount of graffiti, trash, broken-down cars, boards falling off of abandoned buildings,” the chief said. “And considering the fact that 80,000 cars a day travel along that route — I don’t want that to negatively define our city.”


 

HOW SMALL BUSINESS OWNERS CAN PROTECT THEMSELVES FROM CHECK FRAUD

checkYou know, we talk about the thousands of ways you, the small business owner, loses money to thieves constantly. Most of that is centered on shoplifters and boosters stealing your merchandise. We talk about that for good reason… it’s one of the biggest financial impacts to your business if left unchecked. However, there are so many other ways that your business can be targeted by criminals and some of them may appear so legitimate, that you would have no idea you were a victim for weeks. In that time, the criminal is long gone and you’re left paying for that theft out of your pocket. One area of training that is often overlooked in retail is check fraud. I’ll give you some advice on how to identify this in your store and protect yourself from vulnerability.

I’ve worked in big box retail my entire adult life, mostly at a regional Loss Prevention level. The way large businesses protect themselves against phony checks is through a third party company. By using this company, the retailer in fact takes $0 loss on any fraudulent check purchases, since the 3rd party company gives the retailer, through a quick scan on the POS, a guarantee on the check that it is accepting. That’s great for billion dollar companies that accept thousands upon thousands of checks each and every day. But what about you?

To protect yourself against counterfeit and fraudulent checks, you have to know what to look for. While technology is helping criminals create and print better looking checks, there are several tell-tale signs that you can look for to stop this from happening to you and your business.

  1. Micro print| Take a really close look at a check if you happen to have one lying around. Pay close attention to your signature line. I bet you’ve never noticed that the line is in fact, not a line at all. It’s actually fine print. Really fine print. Often it says “micro print” or “security” and it is very difficult for a fraudster to recreate. In fact, if you try to copy the check on even a high end scanner and laser printer, it will not come out perfectly. This is absolutely, hands down one of the easiest ways to spot a fake.
  2. Perforation| Pay special attention to perforations on the check if you suspect fraud. The vast majority of personal checks have a perforation at the top, which of course makes it easy for you to remove from your checkbook. Often, a fraudster will copy the checks on laser printers, giving the check a smooth side all around. Business checks will more often than not, have perforations along the left side, so also keep that in mind.
  3. Single Checks| If someone is making a rather large purchase and are paying with a check, take note if that individual has just that one single check, and not an entire book. This can be a strong indicator of fraud. I mean, who just carries around one check?
  4. Back of Check| Pay attention to the back of any check. Did you know that on the opposite side of the endorsement is a little paragraph explaining the security features of that exact check? Imagine that! Use that to your advantage and look for the features to be prevalent on the check. Most checks also have a watermark on the back of the check that is almost impossible to fake.
  5. Out of State checks| You know your customers pretty well. If you are a local store and you have someone attempting to spend a great deal of money on high end product with a check from an out of state bank, pay close attention. I’ve dealt with this plenty of times in my career and the easiest thing to do is contact the financial institution on the check. Very often, you’ll find that the financial institution doesn’t even exist!!
  6. Paper Quality| There are two type of phony checks. Ones that are counterfeited from scratch, and those that are actual checks that have been washed in some way. Each one will give you specific clues to the authenticity of the check itself. Washed checks will just look odd. Under the slightest of scrutiny, you should be able to notice that the check has been altered, whether it be an erased line or perhaps you may even still be able to see the original information underneath. Counterfeit checks will usually be printed on paper that’s not of the same quality as a legitimate check. It may feel a little different in your hands, or may be slightly thicker than a normal check.

Now these are just some general guidelines that should help you to identify the majority of check fraud. Since criminals are constantly evolving their tactics, there will never be an “all-inclusive” black and white guide to identifying fraud, following these few steps and using a bit of common sense can help protect your business from falling victim to a forged, counterfeit or otherwise phony check.


Improved Inventory Results With Alpha Spider Wrap

 

Alpha Spider Wrap-5                                                                                                                              WC blog 131
Retail Anti-Theft Devices-4
Prevent Shoplifting-3
Improved Inventory Results With Alpha Spider Wrap 
     As a former store Loss Prevention Manager I found inventory time could be a little nerve wracking because I never knew what surprises the inventory results would hold.  I usually felt fairly confident we would have good shrink results but my concern was seeing what our top shortage departments would be. Were the major items that we were losing due to theft or operational issues? What would those items be?  Sometimes there would be items that were almost guaranteed to be on the Top 10 shortage department lists, such as cosmetics and DVDs.  Occasionally something would show up that made me scratch my head trying to figure out what in the world I was going to do to prevent shoplifting of the item and prevent a recurrence the next year.  One such item that made the list one year was vacuum cleaners.  The fix for us came when we started using Alpha Spider Wrap to protect our high end vacuums.
     Alpha Spider Wrap uses aircraft grade steel cable housed in a cinching device to protect merchandise.  The wires can be loosened to fit around a boxed item and then tightened to create a snug fit and keep it from being slipped off.   These retail anti-theft devices come in different sizes so even though we used the larger wraps for our vacuums, we had smaller wraps available for other merchandise in the store.  Alpha Spider Wraps are available in several models with different features.  They are all radio frequency sensitive to work with store electronic article surveillance systems.  Some are tamper proof so they will sound an alarm if someone attempts to cut a wire to remove the device.  There are also wraps available in a 3 alarm design that will self-alarm if someone were to get a protected item out the doors, past electronic article surveillance antennas.
     In the case of our vacuum cleaner issue, we knew there had been some attempts to roll out vacuums past the cash registers, but we did not know how many thefts had taken place over the year.  To prevent shoplifting we had placed our closed circuit television cameras on the aisle where the vacuums were merchandised.  We had also attempted to use retail anti-theft devices such as EAS tags and tamper-proof security tape on the boxes. Finally, I tried to staff my front end security team members at times we suspected shoplifters were trying to conduct roll-outs.  Obviously the results spoke for themselves and it was apparent we had not done enough to curb the thieves.  They were cleaning house (pun intended) and I needed a new tactic, especially when I learned from Loss Prevention Managers in other stores that they were experiencing the same problem.  
     Our company had recently started purchasing Alpha Spider Wrap and sending them to stores.  I had our merchandise protection specialist and our security team members start securing the vacuums with these new retail anti-theft devices.  At this point we were also tracking sales and on-hand counts of our high end vacuums and as we wrapped merchandise we started to notice that the in-stocks were improving.  Major improvements were seen in the decrease of empty shelf spaces and much to the chagrin of my Loss Prevention peers; I was hearing they were still experiencing significant losses.  It seemed the steps we were taking were shifting shoplifter activity to other stores and away from us.  By the next inventory we saw a drastic decline in the shortage dollars for this department, due in large part to the use of these wraps.
     Retail anti-theft devices such as Alpha Spider Wrap can prevent shoplifting in your store, lik it did on ours.  Why wait for inventory results before protecting your products?  Be proactive now and watch your profits grow.
Need information on Alpha Spider Wrap? Give us a call at 1.770.426.0547 now.
     

As a former store Loss Prevention Manager I found inventory time could be a little nerve wracking because I never knew what surprises the inventory results would hold. I usually felt fairly confident we would have good shrink results but my concern was seeing what our top shortage departments would be. Were the major items that we were losing due to theft or operational issues? What would those items be? Sometimes there would be items that were almost guaranteed to be on the Top 10 shortage department lists, such as cosmetics and DVDs. Occasionally something would show up that made me scratch my head trying to figure out what in the world I was going to do to prevent shoplifting of the item and prevent a recurrence the next year. One such item that made the list one year was vacuum cleaners. The fix for us came when we started using Alpha Spider Wrap to protect our high end vacuums.

Alpha Spider Wrap uses aircraft grade steel cable housed in a cinching device to protect merchandise. The wires can be loosened to fit around a boxed item and then tightened to create a snug fit and keep it from being slipped off. These retail anti-theft devices come in different sizes so even though we used the larger wraps for our vacuums, we had smaller wraps available for other merchandise in the store. Alpha Spider Wraps are available in several models with different features. They are all radio frequency sensitive to work with store electronic article surveillance systems.  Some are tamper proof so they will sound an alarm if someone attempts to cut a wire to remove the device. There are also wraps available in a 3 alarm design that will self-alarm if someone were to get a protected item out the doors, past electronic article surveillance antennas.

In the case of our vacuum cleaner issue, we knew there had been some attempts to roll out vacuums past the cash registers, but we did not know how many thefts had taken place over the year. To prevent shoplifting we had placed our closed circuit television cameras on the aisle where the vacuums were merchandised. We had also attempted to use retail anti-theft devices such as EAS tags and tamper-proof security tape on the boxes. Finally, I tried to staff my front end security team members at times we suspected shoplifters were trying to conduct roll-outs. Obviously the results spoke for themselves and it was apparent we had not done enough to curb the thieves. They were cleaning house (pun intended) and I needed a new tactic, especially when I learned from Loss Prevention Managers in other stores that they were experiencing the same problem.  

Our company had recently started purchasing Alpha Spider Wrap and sending them to stores. I had our merchandise protection specialist and our security team members start securing the vacuums with these new retail anti-theft devices. At this point we were also tracking sales and on-hand counts of our high end vacuums and as we wrapped merchandise we started to notice that the in-stocks were improving. Major improvements were seen in the decrease of empty shelf spaces and much to the chagrin of my Loss Prevention peers; I was hearing they were still experiencing significant losses. It seemed the steps we were taking were shifting shoplifter activity to other stores and away from us. By the next inventory we saw a drastic decline in the shortage dollars for this department, due in large part to the use of these wraps.

Retail anti-theft devices such as Alpha Spider Wrap can prevent shoplifting in your store, lik it did on ours. Why wait for inventory results before protecting your products?  Be proactive now and watch your profits grow.

 

Need information on Alpha Spider Wrap? Give us a call at 1.770.426.0547 now.

     

 

 

Is Technology The Answer To Shoplifting And Employee Theft?

EASWhat 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.

“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.”


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.)


 

Strong Hiring Practices can Deter Employee Dishonesty

shoplifting2Employee theft is a common and costly problem in retail.  Some businesses’ are reporting that, for the first time, internal pilferage has now surpassed external.  There are many ways to control and manage internal theft.  But, one of the most effective ways is often overlooked.  Stop it before it starts.

Many companies have the misconception that “management” starts after someone is hired.   But, good management practices start before the employee is ever hired.  They start when the candidate is sitting in her first interview.

Companies who’re committed to integrity understand that from the moment the potential hire encounters the company (i.e., website, employment application, recruiter, Human Resources) he should know that the company values honesty.  Values it and is activity looking for employees who do too.

When a business makes it a priority and emphasizes it as a condition of employment, dishonest people will start to be weeded out.  Some will self select — they’ll become uninterested in the job and move on to a less stringent company.  Or if they think they can cheat the system, make it difficult for them to get through the hiring process.

One way to get people to fall by the wayside is to have an up-to-date written drug free workplace policy, which includes rigorous pre-hire testing.  The applicant must sign it and follow through with the testing.  Many will sit in the interview, say they agree with the policy and never go for the testing.  Or, of course, fail it.

Another way to screen for honesty is to let people know up-front, clearly and in bold letters that the company has a firm policy of checking references, education and work history.  It may also check on credit and criminal history, depending on the job requirements.   

People are blatant about their dishonesty, they count on nobody checking — make sure they know your company does.  They’ll walk away and not even attempt to apply for the job or will be caught in their deception when their information is checked.

Be very careful about using social media in hiring practices.  It shouldn’t be used as a shortcut.  It’s not a substitute for due diligence and good procedures.  If an interviewer doesn’t hire a woman because they found out through Facebook she was pregnant, the company is in violation of the law.

The laws concerning the applicants’ “right to privacy” and potential employers’ “right to know” are just starting to be written.  Many legal experts are encouraging businesses to err on the side of caution and use only legally established hiring methods.  Don’t let your company become the test case to make new law.

Nicole Abbott is a professional writer who’s had over 200 articles published.  She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction.  She’s a coach, lecturer, trainer and facilitator.  She has conducted over 200 workshops, trainings, presentations, seminars and college classes. 


Increase Your Margins Without Spending Anything

theft (12)Do you REALLY know how to stop shoplifters? I mean, really know? Your Checkpoint System is only half of the strategy. You spent the money, put the labor/time into using labels and tags but after the newness wears off, are you still having more losses than you want?

As a customer of Loss Prevention Systems you have more. Because you bought your system from us and purchase tags/labels from us, we will train you and your staff in any or all of our awesome FREE, LIVE webinars:

lpsiiYes, we will conduct these webinars privately for you. As reasonably often as you need. Change in staff, new hires, new supervisor, new manager, refresher training, one person or fifty…. Just call and schedule it.

You see, I believe that the Checkpoint System and Alpha High Theft Solutions equipment is as good as the staff that is handling it. So these webinars are not about how to use the equipment but about how to deter the shoplifters in the first place and what to do when you do catch one. I cover your stores policy (or help you design one), how to approach a suspected shoplifter and deter them, how to handle an alarm from the Checkpoint System, your State’s laws and much more.

My 30 years as an LP professional starting as a Police Officer, Store Investigator, District LP Manager, Regional LP Manager and the Director of LP for two major retailers, give me a vast amount of experience to draw on to help you solve your problems. Think of Loss Prevention Systems as your LP Department. All of that because you are our good customer!

My goal is to reduce YOUR losses. If LPSI can do that, then we are all happy.

So call or email us, get one scheduled before you lose any more merchandise to thieves.


DID CALIFORNIA JUST DECLARE OPEN SEASON FOR SHOPLIFTERS?

law-3There’s been some news swirling around the LP world for a few weeks now about California and some new laws that the state has passed. Basically, the state raised the threshold for a felony theft to $950. The article hinted that shoplifting has increased in the major retail stores and calls for shoplifting cases have increased by 25% to the LAPD. The article blamed the new legislation for this. Here’s a link to that article if you’d like to read it. (http://losspreventionmedia.com/insider/shoplifting-organized-retail-crime/welcome-to-california-a-shoplifters-paradise/?mqsc=E3836406).

I know I’ll catch some flak from my colleagues, but I’m going to openly disagree. Honestly, I don’t think your average shoplifter is paying much attention to the state laws governing shoplifting. In my home state of Louisiana, felony theft, when I started my LP career was $350. Over time, the state legislators have increased that to $500, and more recently to $750. So where that shoplifter was being charged with a felony 10 years ago, they are now being charged with a misdemeanor. In most cases, they are still booked into parish jail and have to bond out. Very rarely do officers issue a citation. Our jails are just as over-crowded as California and our budget situation is arguably worse. If California is seeing an increase in shoplifting, let’s also consider that the state has no laws regarding organized retail crime.

In Louisiana, there are organized retail crime laws on the books. In addition, shoplifting has a habitual offender clause. These two pieces of legislation are what makes an impact, not the dollar threshold for a felony. Your organized criminal enterprises are what’s causing you problems. These are the boosters who target stores up and down the interstate. The groups that make a living conducing refund fraud and those individuals who just will continue to steal because they see it as “victim-less”. These are the people that impact retailers and these are the ones that deserve the harsher penalties. I don’t believe a high school kid, or college freshman should be subject to a felony if their first offense is stealing a $300 pair of headphones. They need consequences, but a felony record is not one of them.

Why organized crime laws work for the state

If you are stealing for the sole purpose of re-selling for profit, you are a problem. Chances are, if you’re involved with a group like this, you’re also involved in other, more serious crimes. Just this past year, I was able to help local detectives make a case against a ring of car thieves. While detectives didn’t have enough evidence at the time to book anyone on the car thefts, the same people were involved in organized retail crimes. They were stealing large quantities of ammunition and then selling the merchandise at local flea markets and gun shows to fund their car theft operation. Police were able to use the organized crime laws to bring felony charges against them, which led them to the evidence they needed to bust the car theft case wide open. Had it not been for those laws being on the books, these violent criminals may still be out on the streets.

Additionally, Louisiana has a habitual offender clause in the shoplifting law. Anyone convicted of shoplifting 3 times shall be charged with a felony on each subsequent arrest. Basically, if you are convicted 3 times of shoplifting, whether those convictions are misdemeanors or felonies, any subsequent arrest is upgraded to felony charges from the DA’s office. I’ve seen this work in action a dozen or so times throughout my time here. Just last year, we busted a guy for stealing about $200 worth of apparel. He was out on parole for aggravated battery. He had 4 other shoplifting convictions. The DA prosecuted him as a habitual offender, which revoked his parole and he went back to prison to serve the remainder of his 5 year sentence. That’s what has an impact. If a person knows that they can face actual time, you have a deterrence to shoplifting.

So maybe, retail leaders in California should shift their focus from complaining about the felony threshold, to lobbying their elected leaders to pass meaningful legislation that will actually have an impact on shoplifting. While some professional criminals will take advantage of this new law, the retail community and lawmakers should work together to pass laws that target those that are the true problem. That starts with an organized retail crime law, California.


WHAT’S THE VALUE IN LOSS PREVENTION AWARENESS TRAINING?

meetingpic.Whether you’re a small one store business, or a large chain store, loss prevention awareness training for your teams cannot only protect against criminal acts, but also make a direct and positive impact on your bottom line. There is an inherent value in awareness training that lots of managers just don’t take advantage of. The core of any successful loss prevention program is not how many shoplifters are caught, nor is it how many employees were arrested; it’s training and awareness of your store teams. We are called loss “prevention,” not loss “reaction,” right? So how do you persuade your managers to see the value?

In my experience, in order for a manager to really do something, and to buy in to anything, you have to appeal to the “what’s in it for me” mentality. (Because a job and steady paycheck just aren’t enough.) What’s the biggest complaint from your managers? What I hear most is “payroll”. They need more people and more allotted hours to get the job done right. You surely just can’t dole out payroll hours, as this is the biggest controllable expense you have. So you have to work with what you’re given; but what if what you’re given is slowly being eaten away by shrink?

Shrink has a direct impact on payroll. Take for instance, if your store lost $12,000 last month to shrink and we assume that you have an average hourly rate of about $10/Hr. That $12k you lost could’ve been sales, had you had the product in stock for the customer. That equates to about 70 payroll hours you’ve lost. That’s 3 part time workers, or 1 full time and 1 part time worker. So how do you recoup some of those hours? Awareness training.

Well, who do you train? I always start with the cashiers. This group is your last line of defense against fraudsters. So much can happen at the point of sale. You can have price-switchers, quick-change artists, box stuffers, counterfeiters, etc. A well trained cashier can quickly spot these thieves and save you thousands. Take for example, ice chests/coolers. A poorly trained cashier may never think about opening these up as they come through the line. This is a gold mine for organized criminals. How much product can you hide in a 160qt ice chest? This would be a good starting point for any training program. Every cashier should be expected to open the contents and check for any hidden product. You’d be surprised at what you’ll find.

Monitor your success. Let’s assume you start with this simple step. Each time your cashier finds hidden merchandise, you record the dollar value of the save. Maybe you even spark a little competition amongst your cashiers. At the end of the month, you (and the manager) have a solid number to show the value in that small investment you made in training. Now you can expand.

What makes a successful training program work is having fun. I had a store manager years ago that really inspired her team. She went around the store and hid little notes inside backpacks, coolers and anything else that she wanted her teams to open and look inside. Those notes said, “When found, bring to a manager”. Those cashiers were then rewarded in some way. From this program, this manager was able to make a positive financial impact of over $10,000 in what otherwise would have been stolen product.

That’s an extreme example. I have other stores that have an “item of the week”. The cashier supervisors’ partner with the department supervisors and each week, they showcase a high ticket item. One week it may be an expensive tent, and the next week a high end toothbrush. During the week, all the cashiers have an opportunity to touch the product, learn about it and understand that it’s an expensive item. This not only gives them the ability to speak to the product to our customers, but to also identify any potential price switch scenario they may encounter.

It’s hard to argue with the value a good LP training program can bring to your store. Not only can you increase your sales, but you can also positively impact your shrink and wage metrics. You also limit the exposure your store has to criminal activity, so your employees and customers can shop and work in a safer environment. If you’re not using your entire team to prevent shrink, it’s time to do so; your bottom line is depending on it.