Prevent Shoplifting

Start 2015 With Loss Prevention Best Practices For A More Profitable Year

January 9, 2015 by admin Leave a Comment

Now is the time to go on the attack! Fix your loss issues before they cost you this year’s profit margin. To do this, in many cases requires you to change the way you look at losses. First and foremost, if you are not leading with an “LP” mindset, how can you expect others to follow and support your goals? Loss prevention should always enter into decisions even if in a minor way. Decisions on how and where to display merchandise and the standards you set for employees to follow, are just the start.

There are three main sources of loss in a retail environment: External (shoplifters), internal (employees) and paperwork errors.

Let us look at two of these, starting with internal. My experience tells me that about 10% of employees in a given retail store are involved in theft. You may be saying to yourself that “my employees wouldn’t do that to me”. If you find yourself thinking that way, you are actually at a greater risk than most. Because you are in denial. People will steal regardless of how good you are to them, how much you pay them, how many times you have helped them and so on.

Often when I hear someone say that, we end up finding out that they have some of the largest losses. I know this may sound cynical but it is the truth based on my experience and thousands of employee theft investigation I have personally conducted. So what can you do to prevent employee theft?

To start, understand that employees must be held accountable. Employees can steal four different things from you: cash, merchandise, supplies and time. All of these have value including supplies. If you operate at a typical profit margin of 2% after taxes a loss of $100 will cost you $5000 ($100/0.02). So even a twelve pack of toilet paper has value, not to mention the serious morale issue when you don’t have toilet paper! Employees need to understand that the only thing they are allowed to remove from the store is the air in their lungs.

On top of this, what message are you sending employees by your actions? For example, if you have a policy that cash register shortages under $5.00 are not investigated and a cashier held accountable, then you are telling everyone that it is okay to steal up to $4.99.

Look for employees that wholeheartedly share, understand, support (not just to your face) and practice your LP policies. These employees should be held up to be the standard. Others will then follow. Those who don’t, well… you get the picture. We have a great sample document you can use for your LP employee handbook. It sets the standards and lets them know from the very beginning what you expect, tolerate and will not tolerate. If you would like a free copy in Word format that you can customize for your use, please send me an email.

Shoplifters, those horrible people that come into your store and try to steal everything they can. Okay I will say up front, we sell Checkpoint anti-shoplifting systems. These systems are used by most major retailers worldwide and for a reason. They shut down a huge amount of shoplifting. They are commercial grade and meant to stand up to the tough retail environment. With that aside, let me ask you this, Why are you not using one? A Checkpoint System is a proven way to bring your shoplifting losses under control.

Other best practices include the use of CCTV. However, you must have the correct expectations for this. CCTV is a reactive measure. Shoplifters are rarely deterred by cameras as they know you do not have the payroll to watch them all the time or even when they are skulking around in your store. CCTV is good for employee theft prevention and investigation. You can use it in a somewhat proactive way by bringing an employee in, showing them a 60 second clip of them doing something good and then complimenting them on a job well done. They leave with a good feeling but say to themselves and others “wow I guess he/she is watching”. Do that monthly and see what happens. Believe me, word will get around.

Employee training is something we almost always overlook. Or we just say that they are learning as they go. You invest a lot of effort and money into a new hire. Spend a few hours with a structured outline and make sure they understand what their new job is, the standards you have and what you expect them to do each and every day. The document I offered you above for free will help with this.

Pre-employment screening is also overlooked. For example, have you ever confirmed that a person you are looking to hire can actually count money? Do you test for that? Put $100 on the table and see if they can make correct change without the assistance of the cash register. If they cannot, do you really want them handling your cash?

Paperwork errors are just as deadly as any other form of loss. Keeping a correct inventory not only helps with reordering but is a critical component of controlling theft. How can you react to loss, if you do not know what items are stolen? For example, you might not know that a particular item is being stolen because shoplifters have found a demand for it elsewhere. If you suspect that a particular item is being targeted, then conduct what is called a cycle count on it. A cycle count simply means you are counting it on a daily, weekly or biweekly basis. Comparing that information to your sales of that item will allow you to react quickly before it is too late and the losses become severe.

Are you ensuring that your employees are not making mistakes in their work and then not correcting them? You also need to set the standard that you are watching and reviewing. For example, if an employee is checking-in a shipment and they are to piece count every item, then follow through by picking up the manifest that they just did and spot check their counts on a few items. When they get it right, complement them. If they made mistakes, show them their errors and let them know how the job is to be done and the standard. By the way there are vendors that will try to short your shipment hoping that you don’t check. Vendors and shippers also have employee theft issues and you do not want to be left holding the bag for their issues. I have caught major shipping company employees cutting open the bottom of boxes removing merchandise and then taping the box back up. All of this is done on the truck before they arrive at your business.

I realize that much of this is common sense. However, in many cases we are so busy trying to make money that we forget to keep the money we have on the bottom line. Remember, we are here for you. If you have any questions or issues, we are simply a phone call or email away.

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Law Enforcement and Retail Loss Prevention Partnerships

January 9, 2015 by admin Leave a Comment

Shoplifting isn’t just a problem for retailers. It is a crime and it affects everyone in some way. Whether it be the retail store that suffers lost profits, the consumer who is faced with higher prices, or a community that is plagued with organized criminal syndicates all dealing in stolen property. For years, it seemed like I was fighting the shoplifting battle alone. I could deploy the most sophisticated camera systems, or use the newest EAS technology, but those career shoplifters were still targeting my stores on a daily basis. And getting away with hundreds of thousands of dollars in goods.

I felt the response from local law enforcement wasn’t what it should’ve been. Understandably, police usually see shoplifting as a petty crime. It’s a low priority in most jurisdictions, as it falls behind drug crimes, auto theft, burglaries and the more violent crimes. It wasn’t’ until two years ago that police in my parish began addressing the ever-growing shoplifting problem with a very unique solution.

The local sheriff’s office began reviewing shoplifting statistics and assigned two detectives to develop a program with local retailers to coordinate efforts and share information on shoplifters. At the onset, I was approached by these detectives. I was the regional LP manager for one the the largest retailers in the parish. It didn’t take much to convincing to get me and my company onboard. I reached out to my industry contacts and before long, over 100 different retailers were working in concert with local police to dismantle some of the most well-known shoplifting rings. These weren’t just big box retailers with LP departments. The vast majority were small, family owned stores and supermarkets who were tired of seeing the same shoplifters day in and day out. Once a quarter, everyone would meet in a large auditorium and swap cases and share photos of big time boosters, or unknowns. It didn’t take long for some very substantial cases to be made, as well as the sheriff’s office realizing just how bad the problem was.

Everyone was quick to see what we knew all along. Shoplifting was not being committed by a bored teenager. Most of our shoplifters were drug addicts who were hooked on heroin, which is making a massive comeback in the US. Gangs of 10-15 at a time would target stores across the area. They would steal merchandise, conduct fraud refunds; whatever it took to make enough money for their next score. As more and more information was shared, police came to learn that most shoplifters were also suspects in other, more serious crimes. Based on our partnerships, we bang identifying car thieves, drug dealers and violent offenders, al who hand their hands in shoplifting.

While we’ve only scratched the surface, preliminary numbers for 2014 show over 4,000 arrest for shoplifting in this one parish alone. Most of these originated from the partnership group. This is a staggering number to comprehend. The hope is that with more support from the DA’s office, this number will start to decrease. We’ve already seen prosecutors push for heavier penalties and even prison time for some of the biggest repeat offenders. Hopefully, these types of partnerships can continue to be forged, and our law enforcement agencies will continue partnering with the Loss Prevention industry to help turn the tide against shoplifting.

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Cycle Counts

January 9, 2015 by admin Leave a Comment

With only a distant memory of the holiday shopping season in our minds and spring business just on the horizon, it’s a good time to start focusing on inventory control and accuracy. With the hustle and bustle of the holidays, retailers sometimes lose focus on what’s really important, their inventory. It should be second nature for you to take an annual inventory of your store. The best time to do this is soon after the holiday. Think about it, your store is most likely at a low inventory point, so counting is normally easier, and you have a little extra in the payroll budget due to that month of increased sales. It only makes since. Often though, this annual inventory is the only time some retailers verify their on hand accuracy, however, cycle counts can be of great benefit to any store environment, any time of year.

If you are unfamiliar with cycle counts, just think of them as a mini-inventory focused on a small section of your store. In my experience, conducting a count on high value, or high theft merchandise at least quarterly (monthly is better), can actually help boost sales. For example, let’s say that you sell several styles of pocket knives. Your sales are good in this category, but your shrink is always high. You know you lose knives daily due to theft, so your on hand counts are always a little off. If you are replenished based on those counts, then you may not be getting the product you need, which will then hurt your ability to sell that product. Not only is the theft creating a loss, but now you are losing sales because your customers can’t purchase a knife you don’t have. If you waited an entire year to conduct an inventory, you would lose those sales for the entire year. This can easily be corrected through consistent and well planned cycle counts.

Once you have the areas of the store selected that would benefit from a cycle count, plan to do them on a day that is historically a low sales day, like early on a Monday morning. This gives you a chance to get it done with minimal interference from customers, and it won’t mess with your counts if a customer purchases an item you are counting. Take a small section, once a month. Don’t try and count an entire department. Keep it simple and focus on a small area that is normally high shrink. Print out what you should have on the books, and compare it to what you physically have. Simply make any adjustment to your inventory as needed. It’s really that simple and it’s a great way to stay in stock for your customers.

As in the example above, as a manager, or store owner, you know what areas of the store have the most shrink. In order to combat theft and remain in a good stock position throughout the year, you have to have accurate on hand counts. If you implement any inventory adjustments, always ensure that they are conducted by a manager, or one of your most trusted employees. Having an inaccurate count can cause a loss on paper, and/or keep you out of stock even longer. Additionally, this can also help you to identify areas of employee theft as well. If you have items that are shipped to your store that are stored in areas only accessible to employees, you shouldn’t have any losses. For instance, if you have high end sunglasses that are kept locked in a case and you find you are missing hundreds of dollars’ worth of those glasses, chances are you may have an internal theft issue. If you would wait until the end of the year to find that during your annual inventory, you may never be able to uncover the source of the loss.

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Does Your Business Culture Encourage Employee Theft?

January 9, 2015 by admin Leave a Comment

There is a belief among many small business owners that, because the company belongs to them, they ought to be allowed to behave anyway they want. They want to be able to run things their way and believe the employees “should and will” respond accordingly. That’s why they went into business for themselves – they wanted to create and control the work environment or cultural.

This is the paradox, and downfall, of many small business owners. The characteristics of independence and self-determination, coupled with the need to be in charge, are the hallmarks of a successful entrepreneur. Unfortunately, they’re also the attributes of unsuccessful, bankrupt entrepreneurs.

One of the differences between successful and unsuccessful owners is the ability to marginalize the negatives and maximize the positives of their desire to be in control. This ability is particularly important when establishing and maintaining the business’s security culture. Yet, ask any business consultant or security advisor and they’ll say this is one of the areas owners are least likely to address.

They usually don’t address it because they have the mistaken belief that the culture they’ve established and are maintaining, through the power of their personality, is an effective theft deterrent. They believe the way they behave (i.e. nice, nasty, supportive, demeaning, conciliatory, confrontational) will keep them safe from employee fraud.

However, it rarely works that way. The company’s culture is usually not enough to stop employee theft. “Good” guys who try to create an atmosphere of ease for their employee and “bad” guys who create one of stress have the same amount of fraud. The statistics and antidotal information show that owners who manage through personality, rather than systems and controls, are likely to fail.

Employees are 15 times more likely to steal than outsiders and are responsible for 44% of a business’s theft losses (National Federation of Independent Business). This results in almost a 1/3 of businesses failing due to employee fraud (U.S. Department of Commerce). In another 1/3 it’s believed to be a .05% – 1% loss of profit.

The number 1 deterrent is security systems and controls embedded into the cultural. A business’s security culture – values, beliefs and norms which guide how the business and the people in it operate – is important to a business’s survival. When people work within one there’s a profound positive effect on employee morale, operations and the bottom line.

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What’s Trending in the World of Shoplifting?

January 8, 2015 by admin Leave a Comment

Wouldn’t it be nice if the criminal world was as easy as Twitter? You could just go online and look at what’s trending and then take proactive steps to stem any potential losses. That would be great! Unfortunately, criminals, especially thieves rarely broadcast their intentions. It’s up to the loss prevention community and local law enforcement to share these trends amongst each other in order to combat shoplifting.

You may or may not be aware, but shoplifting is much more than just putting one item in your purse, or pockets. I routinely see individuals and groups operating some very sophisticated fraud schemes in order to remove product from the store. One of those trends that have become more and more prevalent over the past year has involved refund fraud. I had a very complex case that spanned several months that was more sophisticated than anything I had every come across in all my years conducting Loss Prevention Investigations.

The basic storyline is that a brick and mortar store front was employing individuals to target stores for small, high dollar merchandise. Once the product was stolen from one store, it would then be brought to a second store where a refund was given for the product in the form of store credit. That individual would then utilize that credit in order to purchase a high end electronic item. The item, along with the receipt was sold to the store front. This is where it takes a more complex turn.

The store owners would then arrive back at the store with the receipt and electronic item and ask to exchange it for other product. This was routinely conducted with footwear or apparel items. The store owners would conduct the exchange and, on most occasions, pay a difference in cash of anywhere between $10 and $20.

Over several days, the store owners would return to my store and refund each item that was purchased during that exchange transaction. Since the receipt showed they paid a cash balance, inattentive store personnel would always give them a full cash refund. Did I lose you?

Essentially, I was at a loss 5 times for the same product. First it was stolen. Second, I gave them a store credit for stolen goods. Third, the store credit was then spent. Fourth, the product the credit was spent on was exchanged for additional merchandise. Fifth, we gave them cash. It was incredible once it was all uncovered. This group has figured out a way to essentially launder stolen goods and with a few steps and some patience, get cash. All while keeping the appearance of a legitimate transaction. All told, our stores lost well over $100k to this scam.

It was an expensive lesson to learn, but it goes to show just how creative people can be when it comes to fraud. While this was the first time I had ever seen something of this complexity, I can assure you that in the next year, someone will come up with an even more complex method to defraud retailers.

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Prevent Shoplifting This Year

January 7, 2015 by admin Leave a Comment

The shoplifting figures in the United States are nothing to laugh about. Billions of dollars are lost to shoplifters every year and the detrimental effect they have on business is serious. Loss prevention personnel are at risk every time they stop a shoplifter, and the solution to this problem has evaded the retail industry with costly consequences. Retailers spend millions of dollars in loss prevention systems, and studies show that these businesses benefit from the investment. The shoplifting is still there, but retailers are able to maintain and keep track of the inventory more easily. For more news about shoplifting, follow the links below.

Shoplifters Costing Businesses Billions

GREENSBORO, N.C. — Shoplifting is a crime police say affects all types of businesses, and it’s costing a fortune.

WFMY News 2 went to several Triad businesses Friday. Owners at those businesses said shoplifters are crippling their day-to-day operations.

One Greensboro store manager said shoplifters cost his business anywhere from $10,000 to $15,000 each year.

“If somebody really wants to steal something, they’re going to steal it,” he said, “Ain’t nothing you can do about it.”

He’s frustrated, and he’s not alone.

Nationwide, shoplifters steal about $13 billion in merchandise every year, according to the National Association of Shoplifting Prevention. The same organization reports one in 11, or 27 million people in the U.S., are regular shoplifters.

KCSO shoplifting task force makes record number of arrests

KNOXVILLE — A Knox County Sheriff’s Office holiday shoplifting task force made a record number of arrests for 2014.

KCSO’s Safe Holiday Task Force made 372 arrests between Nov. 24 and Dec. 29, according to the Sheriff’s Office. The team was credited with 342 arrests during the same time period in 2013.

While the majority of the 2014 arrests were for shoplifting, they also included 35 felony theft charges, 12 DUI arrests and two fugitive captures.

The annual operation also recovered a record amount of stolen merchandise, totaling $65,614 worth of goods, and located two stolen vehicles. About $50,000 worth of stolen items were recovered in 2013.

Drug habit fuels shoplifting ring in Richmond and around Macomb County

A shoplifting ring has targeted Richmond stores for more than two years, according to a detective with the Richmond Police Department. Thieves steal easily marketable goods to fuel drug addictions, particularly heroin addiction, the detective said.

“What we have seen — and what our counterparts in Chesterfield and at the Macomb County Sheriff’s Department have seen — is a loose ring of individuals shoplifting certain high-priced items like Enfamil baby formula, Red Bull and Crest White Strips, and then either taking these directly to the drug house and trading them for drugs or selling them back-door to another store for cash to buy drugs,” said Det. Julia Frantz.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha High Theft Solutions, Alpha Nano Gate, Anti-shoplifting training, Employee Theft, Prevent Shoplifting, retail security, retail security and monitoring, security devices, Shoplifting Prevention, surveillance

Post Christmas Blues

January 5, 2015 by admin Leave a Comment

Well, the 2014 Holiday Season is over; now we are dealing with the post-Christmas issues, returns, inventory and tallying up how we did! Even without official numbers you probably have an idea. Are returns higher than what you expected? Did shoplifters get more than what you were prepared to lose? One of the problems, we as business owners face, is that we get ramped up for sales but we tend to put off preparing for loses. We tell ourselves that we will get to it later. Then when that B or C priority rises to the level of serious loss, it is too late. But we all do that, with many things. It is part of running a business.

Eventually we get tired of dealing with something over and over again and decide to break the cycle. What is the saying? “Doing the same thing over and over but expecting a different result, is the definition of insanity”. Thieves will not go away, in fact they will only get worse unless you deal with them head on with real business solutions. Shoplifting and employee theft are actually very simple issues to address. You will never eliminate them completely, however, you can reduce them to an expected level balancing the cost and effect.

Many retailers do not realize that they can and should attack both issues internally first. Take a look at your procedures. Step back and look at them – I mean truly LOOK at them, hard. Why are you doing something the way it is done? Is that the reason for your losses? A good example may be your cash handling procedures. Is your till generally short? How much? Why? If your policy is that you do not make an issue out of a drawer that is $15 or less short, then you have sent the message to your employees that they can steal or be careless up to $15. Fifteen dollars multiplied by 365 days a year is A LOT of money to any retailer, large or small. All of this because of your “procedure” or attitude.

How about shoplifters? Do you really know how to prevent and stop them? Do you teach this to your employees? If you don’t you can never expect to be as profitable as you can and should be. Shoplifters will react to your efforts by going elsewhere. That is what you want. This allows you to spend more of your resources and human capital on your paying customers. Sell more, lose less should be your motto!

If you want help, we are here for you. If you do not, that is OK also. But you can fix your losses.

We wish you a great and prosperous 2015!

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Merchandise Availability- Alpha Security

January 3, 2015 by Staff Editor Leave a Comment

When we look at ways to prevent shoplifting, we are really trying to do is to increase our merchandise availability. Sure, no one really wants thieves and crooks taking advantage of our businesses, but the bottom line is about maximizing our availability to increase our revenue from customer sales.

Retail anti theft devices, such as the one developed by industry leader Alpha Security, are tried and true tools specifically created to prevent shoplifting. As shoplifting decreases, our inventories become more accurate and more plentiful (due to a lack of missing merchandise). We, as retailers, spend significantly less time worrying about whether or not we have a particular item in stock, and more time getting the customers to actually buy them.

When customers can walk into a location and find the item they want, and the quantity they need, sales increase. Taking it one step further, you also get the advantage of repeat business. The customer knows they can rely on your retail location to be in stock for their consumer needs. By reducing theft through the use of Alpha Security retail anti theft devices, you assure you have the right in stock availability to satisfy your customer’s needs.

Visit the Loss Prevention Store for Alpha 2Alarm, Alpha 3Alarm, Alpha Fashion2, Alpha Jewel Lok, Alpha Nano Gate, Alpha Shark Tag, Alpha Spider Wrap and other retail anti-theft devices from Alpha Security to use in conjunction with your Electronic Article Surveillance or EAS system that can help you prevent shoplifting in your business.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: Alpha Fashion2, Alpha Jewel Lok, Alpha Nano Gate, Alpha Shark Tag, Alpha Spider Wrap, Fashion2, Jewel Lok, Nano Gate, Prevent Shoplifting, Retail Anti Theft Devices, Shark Tag, Spider Wrap

New In Box-Alpha Spider Wrap

December 31, 2014 by Staff Editor Leave a Comment

Some inventory items are valuable only if they can be resold as NIB or New In Box. Any damage to the box, or a lack of tags is an indicator that the product is either used, or stolen- both of which reduces the resale value as well as the actual ability to be resold. Other items can be sold without the box. In those cases, the Alpha Security Alpha Spider Wrap is an effective deterrent.

Power tools are a good example of an item that does not need to be sold new in box. In some cases, it is even easier to sell power tools if they look to be slightly used. These tools are taken to construction sites and sold with a story that they no longer need them, or they didn’t like the tool and bought a different one.

The Alpha Spider Wrap retail anti theft devices prevent shoplifting by keeping the power tools in their boxes. This makes them harder to steal. A large box is more obvious walking out a door, than a power tool tucked inside of a coat. If the Alpha Spider Wrap wires are cut to eliminate the tools packaging, an audible alarm is activated, alerting everyone around that the box is being tampered with.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547

On The Way Out- Prevent Shoplifting

December 24, 2014 by Staff Editor Leave a Comment

If you are one of the 95% of retailers who has experienced shoplifting in your stores over the last few years, you might be trying to figure out how to build a better mousetrap that will prevent shoplifting. The success will be in not stopping the shoplifters once they have started trying to steal, but rather stopping them from wanting to steal once they are in your store.

That subtle difference can mean the world to your shrink results and to your bottom line. Many retailers don’t realize just how hard it is to stop a shoplifter once they have started the shoplifting process.

If a shoplifter has come into the store and weighed the effectiveness of your security with their own level of confidence and decided they can get away with the theft, it is too late. Now the shoplifter has a goal in mind, and a plan. Once they have the merchandise in their possession, they are determined to get back out of the store, sometimes by whatever means they deem necessary- including violence.

By beefing up your retail anti theft devices and other kinds of store security, you start to weigh the scales back into your favor, persuading the shoplifter to steal somewhere less risky.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547

By beefing up your retail anti theft devices and other kinds of store security, you start to weigh the scales back into your favor, persuading the shoplifter to steal somewhere less risky.

For more information on how you can use Alpha Security retail anti-theft devices and your Electronic Article Surveillance or EAS system to prevent shoplifting contact us or call 1.770.426.0547