How to Tackle Employee Theft and Shoplifting

March 13, 2017 by Leave a Comment

The big retail stores and thousands of convenience stores across the country try to find solutions to tackle shoplifting and employee theft.  The retail industry losses account to $42 billion every year, and it doesn’t seem to be stopping anytime soon.

Security  measures implemented and adopted by many retailers have given these stores some small wins, but overall the losses are staggering.  Inventory adopted by these small stores that are done in real time, and are working in conjunction with software that displays results to the management of these stores instantly,  are invaluable to the operation and profitability of the stores.  As a deterrent to shoplifting and employee theft, these operative measures are of tremendous help to the management as well.

CCTV cameras that provided a grainy image of the customers or perpetrators are a thing of the past.  Now, CCTV cameras provide a clear image of the individual that is easier for police officers and management of these stores to get a clear view of these people. Facial recognition software now provides solutions to these stores that were not available to them before.  And although trained personnel has to work in conjunction with these technological advances, the results have greatly improved over the years.

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

To stop a thief: Shoplifting is a daily battle for retailers

On any given day, more than $35 million worth of merchandise is stolen from retail stores across the country by shoplifters – amateurs and professionals alike – who steal clothing, jewelry, electronics and a host of other items, including food.

Some sneak quickly and quietly with the merchandise, others make bold getaway attempts.

In Tupelo, the retail and financial hub of Northeast Mississippi, the Tupelo Police Department gets hundreds of reports each year.

In 2014, TPD took 483 reports related to shoplifting, according to TPD Public Information Officer Chuck McDougald. Last year, that number fell to 260. So far this year, the department has taken 162 calls.

“Higher shopping volume days correspond to more shoplifting calls,” he said. “Those include weekends and holidays.”

As for the timing of when shoplifters are busiest, apparently they’re not early risers.

“Afternoons see an increase over mornings,” McDougald said. “Generally, it looks like the busier a store is, the more opportunities there are for someone to steal.”

For retailers like Reed’s, which has four department stores in the region, the key to cutting down on shoplifters is to make sure customer service is prioritized.

Are You Doing Enough to Secure Your Stores?

Theft and robbery continue to rise, but new technology and planning can deter.

NATIONAL REPORT — Whether it’s violent crime, robberies, shoplifting or employee theft, convenience stores have been dealing with store security issues for years. New technology is allowing operators to amp up prevention and react faster to incidents, but in many cases — in c-stores and the entire retail industry — the situation continues to worsen.

“I’ve been involved in the convenience store industry for 40-plus years and the risk of loss has not changed. The most worrisome is robbery, and as c-stores evolved into 24 hours, the violence level increased,” Chris McGoey of McGoey Security Consulting told Convenience Store News.

Robberies are up all-around, specifically in convenience stores, as the latest released FBI statistics show robbery up 16.8 percent in c-stores/gas stations from 2014 to 2015. Rosemary Erickson, researcher, forensic sociologist and president of Athena Research Corp., based in Sioux Falls, S.D., says this is the largest increase she can remember in all the years she has been studying crime. Erickson has helped NACS, the Association for Convenience & Fuel Retailing, develop many of its security resources.

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Preventing Shoplifting

March 7, 2017 by Leave a Comment

The National Association for Shoplifting Prevention agrees with the retail industry about the effect shoplifting has in all of us. Communities across the country lose the taxes they would otherwise collect from the items being stolen from stores to help social and outreach programs that could benefit those communities in the long run. Shoplifting is a crime that costs the retail industry $45 billion a year, and we as consumers have to pay higher prices to offset the cost shoplifting has in these businesses.

What we, as consumers and retail employees must not forget is that Profiling a customer upon entering a store is not legal, and we must not lose sight of that. Macy’s and CVS stores have had legal suits because of  profiling that have cost them millions of dollars. Assuming a poorly dressed person entering your store is a shoplifter, is assuming too much.  The NASP states that there is no profile of a typical shoplifter.  Men and women shoplift as equally.  Poorly or well dressed customers have the capability to shoplift from the store.

A recent article about ways to prevent shoplifting advises to monitor children and poorly dressed people, because they write“Teenagers are the most likely to steal from you. People that are poorly dressed are statistically more likely to be shoplifters as well”. According to The NASP 25% of shoplifters are kids and 75% are adults. Unfortunately they do not post statistics about how well or poorly those people are dressed.  If years of research from organizations like The NASP tells you that there is no profile of a typical shoplifter, it is distressing to find articles that tells you to target poorly dressed people with no data to back it up. If kids or teenagers are your main target, then you will be missing out the 75% of adults that actively shoplift.

Preventing shoplifting is not about targeting people of color, how well they dressed, or if they are teenagers or not.  People  from all walks of life steal, and some of them are repeated offenders with an addiction problem or other types of issues.  Preventive measures that allows you to monitor ALL people including employees, is the only smart solution to take for any retail store.  Prejudices or preconceived notions of what a typical shoplifter is can be detrimental to stopping shoplifting and employee theft.

Recent research suggest greeting customers as they enter the store is one of the best methods to prevent shoplifting.  Employees should also wander the aisles, but that does not mean targeting “poorly dressed” people. A well lit store, or a store that has shelves that are well organized can deter shoplifters from entering the store.  Shoplifting is an inevitable part of doing retail business, get to know your store, and offer preventive shoplifting measures without targeting specific people.

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Technology And Shoplifting

February 28, 2017 by Leave a Comment

Shoplifting affects everyone. As shoplifting and employee theft seem to be an unstoppable problem for the retail industry, researchers try to find different methods to prevent and combat shoplifting.  Law makers across the country try to pass laws to deter shoplifters by imposing harsher sentences. Technology has for many years now helped loss prevention personnel catch shoplifters, and prevent bigger loses for stores.  But as technology has improved, shoplifters ways have changed to account for the technology being used to catch them.  As the technology evolves, so does the shoplifter. Are you keeping abreast of the problem? Keep reading by clicking the links below.

Why hasn’t security technology put an end to shoplifting?

As the UK crime rate falls, there is one crime that is on the rise. Recent figures show that shoplifting has consistently grown by an annual 6% against a wider backdrop of reduced crime. This statistic is surprising considering the vast amount of time, money and effort that goes into developing anti-shoplifting technology. So why isn’t it working?

How does anti-shoplifting technology work?

The vast majority of retail stores are equipped with several high tech security measures. CCTV cameras are the most common. According to the College of Policing, CCTV is more effective as a method of gaining evidence to catch and convict a criminal than as a deterrent.

Many security camera providers provide monitoring services to ensure footage is captured and analysed as efficiently as possible. However, surveillance systems require careful planning; Banham Group, security experts with more than 90 years’ industry experience, advise that CCTV installation must include guidance, particularly on data protection laws and system legalities.

Through the Eyes of a Shoplifter

In the June 1968 issue of the magazine, then-managing editor John J. Sullivan tried his hand at shoplifting from a few independent stores, just to see how easy it was to get merchandise past the sales register.

He didn’t have much trouble. With prior permission from the owners, he hit six stores in and around one city in one weekend, for a total of almost $250 worth of merchandise in about an hour—more than $1,700 today. Then-editor Bob Vereen got in on the experiment too, taking nearly $25 worth of merchandise in about 10 minutes from one store.

The point wasn’t, of course, to steal product from hardworking, honest hardware retailers. It was to show how easy it was to do so.

For a quick checklist you can share with your employees to make sure everyone is working to improve store security, click here to download our Loss Prevention Checklist.

Not all businesses on board with new shoplifting proposal

QUINCY, Ill. (WGEM) –

A new proposal by the Illinois State Commission on Criminal Justice and Sentencing Reform has been met with multiple opponents.

Right now, any theft valuing over $300 will land you a felony charge in Illinois. An Illinois criminal justice reform group has asked lawmakers to raise that thievery threshold to $2,000, in an attempt to combat prison overcrowding.

Executive Director Amy Looten of the Quincy Chamber of Commerce said on Monday that there are many reasons to oppose it.

“For every product that walks out the door, they’re not paying sales tax on that.” Looten said. “So our local government, our state government is not getting that income from the sales tax.”

Quincy Menard’s Assistant General Manager Scott Warner added on Monday that shoplifting affects many more people than just the person stealing.

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Security Is A Fundamental Part Of Any Company; The Alpha 3 Alarm Can Provide The Protection You Need

February 21, 2017 by Leave a Comment

I have worked in law enforcement for over 15 years and have responded to shoplifting calls on a regular basis. Unfortunately some are more difficult to resolve due to the lack of evidence, mostly due to the lack of security and witnesses. I have noticed throughout my career that store policies fluctuate substantially when it comes to how employees are allowed to respond to shoplifting events. Some stores don’t allow employees to make accusations, even if they see the violation, or to pursue someone who has stolen items from the store. Some of these stores don’t have security or loss prevention personnel and rely on management level employees to handle these types of situations. This can pose a problem when the managers are not working or are not available. This becomes very frustrating for hard working employees who feel as though their hard work and dedication is irrelevant. I had an incident I responded to in which the employee was very frustrated with the lack of security and protocol at her store. I got called to a shoplifter at the mall. When I arrived I was contacted by a shopper who stated she had watched two females exit the store with several items of clothing. She said the two females were running with non-bagged items, which seemed suspicious, yet no one was chasing them. She got the vehicle description and license plate number and provided that to me. After my investigation I learned that the two ladies had been shopping in one of the stores and were trying on multiple items.  A store associate was assisting with size changes when the ladies bolted from the store taking several items with them. The employee indicated that it was against their policy to pursue shoplifters, even if they witnessed the act. The only reason the shoplifters were brought to justice was because of a concerned citizen who acted on instinct. This store had no security in place, no loss prevention and a policy that prevented employee response to these types of incidents, which left them completely vulnerable to theft.  These women had shoplifted from this store on multiple occasions because they knew they could get away with it. Security may not seem important or cost-efficient but I can tell you it is worth the investment. The best way to protect your property and prevent shoplifting is by using Alpha 3 Alarm technology.

 

Various types of security products can be equipped with an Alpha 3 Alarm to support all of your merchandising needs. This technology alerts store personnel in the event of a theft by emitting an audible alarm upon exit. The Alpha 3 Alarm will also sound if someone attempts to remove the device from the merchandise in the store or damages it in some way.  There are various types and sizes of hard tags available to secure your property and prevent shoplifting. They are re-useable and won’t damage the item or garment. They work great as a visual deterrent for those who have the intent to steal from your store. This can provide an alert to the managers or loss prevention personnel, on sight, so they can take action to stop the shoplifter. 

I know many people think that having a loss prevention program is burdensome and expensive. Therefore, having a no pursuit, no contact, no action policy seems easier, but you are not only hurting your bottom line and encouraging shoplifting in your store, but you are also hurting your employees and your customers. Higher shoplifting rates result in higher consumer costs and lower wages, causing dissatisfaction; resulting in employee and consumer loss. The Alpha 3 Alarm is a cost-efficient way to prevent shoplifting, improve profit and customer satisfaction, while maintaining a pleasant shopping experience. 

 

Alpha 3 Alarms are important and we can help you with it. Call 1.770.426.0547 and let’s talk.

 

Filed Under: Uncategorized Tagged With: , ,

Tips To Prevent Shoplifting and Employee Theft

February 13, 2017 by Leave a Comment

Shrinkage and employee theft cost the retail industry an approximate $42 billion a year according to recent industry studies.  Businesses around the globe lose less than merchants in the United States, but the quantity lost is still a tremendous amount that put retailers in a precarious position.  In the United States, the study suggest that close to half of revenue lost is due to employee theft. The retail industry is aware that while shoplifting accounts for a lot of lost revenue, employee theft can be so much more devastating for their business.

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

Law column: Dealing with employee theft

Policies, record keeping can help protect employers.

There recently has been a spate of news articles regarding theft and embezzlement from Iowa cities. Former city clerks in Delhi, Garwin and Vining are all alleged to have embezzled or improperly spent hundreds of thousands of taxpayer dollars.

In another instance, a former city clerk in Casey was even indicted on charges of burning down City Hall to hide her alleged theft.

As the above stories revealed, an employer may not discover the crime until years after it has begun during an official audit or when someone follows a hunch or notices an irregularity. The Iowa State Auditor warned cities to “trust but verify” employees that handle money.

Public employers are not alone. One study by a national supermarket organization found that its employees were responsible for around 56 percent of supermarket thefts.

Such theft included shoplifting, taking cash from registers and/or providing unauthorized customer discounts. Theft should always be a terminable offense.

Top safety tips to prevent shoplifting

Despite the prevalence of security cameras and high-tech alarm systems, shoplifting continues to be a concern for retailers across the country, with well-versed thieves easily able to outwit these technological barriers.

For business owners this alarming trend is especially unnerving, given their reliance on stock and increasing competition from online retail sites. Rather than simply accepting theft as part of business ownership, it is important that storeowners remain vigilant, enforcing appropriate preventative measures and learning to identify some of the key signs that could give a criminal away. 

Here are a few top tips to bear in mind to avoid falling victim to shoplifting:

1. Know the signs

While not all shoplifters employ the same modus operandi, a few key behavioural traits should raise the alarm. Shoppers trying not to be noticed or walking around nervously are obvious candidates, as are those who loiter purposefully, picking up and putting back the same items repeatedly.

4 Home Depot workers in Palm Coast fired after helping nab suspected shoplifter

PALM COAST — Four Home Depot employees in Palm Coast say they are shocked, saddened, and left wondering why they were fired this week after helping to recover almost $1,000 in stolen store merchandise.

Jeffrey Miller, 59, of Palm Coast said he’d been working at the store on Garden Street for 10 years when he was fired Wednesday over a November incident in which he tried to help other employees stop a suspected shoplifter.

He said his help landed an already-wanted thief in jail, but a company spokesman said the interference was against national corporate policy.

“I was really shocked,” Miller said Thursday about being fired. “I never confronted this individual. Even if I saw him in a lineup I wouldn’t be able to show you what he looked like. All I was doing is getting a license plate (number).”

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Set The Tone For Your Business In 2017

January 31, 2017 by Leave a Comment

How did your retail business do in 2016? Face it, regardless of how well you did or did not do, you could have done much better. The key is to keep your cash, assets and merchandise on YOUR bottom line not someone else’s. Thieves take the money you could have had away, easily in some cases.

The problem is that thieves like shoplifters and employees that steal from you, are attracted to you like flies to honey. Only your assets are the honey. And once one finds you and your weakness, then here they come. Shoplifters talk to each other. They are no different from anyone else. Shoplifters associate with, well other like-minded people… other shoplifters. They share ideas, techniques and discuss the best places to score. If you make their list, then you become the honeycomb not just the honey.

The key is to set the right tone. For example, with shoplifters you must have a two prong attack. First, excellent customer interaction; every customer must be recognized when they enter your store. One out of ten people that walk through your doors is there to shoplift. That is an established fact, yes, even in YOUR store. It is also well established that over 50% of those shoplifters will not shoplift during that visit if greeted.

But what about the other nine people? They are your legitimate customers that you depend on. Greeting them is also critical. It lets them you know you appreciate them and their very presence. This type of interaction also tends to close more and better sales. Why are they in YOUR store as opposed to a big box retailer? You may even sell some of the same merchandise. For the most part they are looking for that interaction, give it to them!

The second piece is electronic protection. You and your staff cannot be everywhere, with every customer all the time. Shoplifters seek out this situation and in many cases will create it. An Electronic Article Surveillance (EAS) system such as a Checkpoint System is actively working 24/7 and tells the one out of ten shoplifters “go away” even as they enter your store. Shoplifters know what a Checkpoint System is and will shy away. They will go down the street to someone who is “easier”. Your other 9 customers will not care or in most cases even know what the system is for.

2017 is time to kick butt in sales. By all indications the economy will start to pick up. Let that work for you, not the shoplifter. Contact us today. We can help you with BOTH pieces, customer interaction and a Checkpoint Systems solution and help you make ALL of 2017 a great retail sales and profit year.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Look At Your Policies, Cash Flow, Deposits, Cash Drawers. Are You Setting Yourself Up For Theft? Either By A shoplifter Or An Employee?

January 31, 2017 by Leave a Comment

What policies do you have in place concerning cash handling, deposits, cash flow and preventing theft by a shoplifter or employee? If you have policies when did you last review them? If you don’t have set procedures and policies you are putting your store at risk for theft and potential robbery. Below are a few suggestions that can be used to create policies or strengthen polices already in place.

CASH FLOW

Starting with your cash office, there are things your cash counter, managers/supervisors and you can do to maintain cash flow integrity. At the start of the day the cash office employee should set up your money bags for registers with a set starting amount for each one. A manager should put the money in the tills and verify the tills are correct. I prefer money bags be used to move cash from the cash office to the registers with each bag being numbered to match a corresponding register. Some locations have the cash counter set up the tills and the tills are carried to the check-lanes. A rolling cash cart with a drop slot and locking door can be used to move the money bags to and from the cash office keeping cash secure. When a cashier is done for the day the money from their register can be placed in a money bag and dropped into the cart and rolled back to the cash office by a front end supervisor. A log should be kept requiring each person entering the cash office to write the time they entered, the date and their name and the time they exit. Money should always be locked in a safe and never left out on a counter in the cash office.

DEPOSITS

     Deposits can be done in one of two ways. Some small stores have a manager take deposits to the bank or get change from the bank when the need arises. The second method is to contract with an armored car company to pick up deposits and bring change orders. This is the safest method and my recommended method for deposits. However, it is an expense and may not be in the budget for a small business. IF your managers are making the deposits, there are several safety precautions to take. NEVER go at the same time of day, it establishes a pattern for a criminal who may be looking for an opportunity to rob the manager. Likewise, NEVER take the same route to the bank every time, change up the direction even if there are only a couple of ways to get there. Always have someone watch the manager from the exit doors as the manager walks to their car and be ready with a cell phone to call 911 if a robbery takes place.

CASH DRAWERS

    Train cashiers to never allow a customer to reach over the counter and get near the register drawer. IF someone reaches towards the drawer the register should be shut. Registers should be closed immediately following a transaction. If a cashier is sorting through the money or “straightening” they could be slipping money out and pocketing it or dropping money, then putting it in their pocket. Don’t “exchange” bills for patrons, there are some shoplifters who also engage in short changing and confusing cashiers and steal money using this method. Others will argue they did not get the right amount of change and start reaching in the till. If there is a dispute over change a manager needs to conduct a till audit with a partner, in the cash office. If there are enough registers in the store, limit one cashier to one register, when the cashier is done for the day, their money goes in their bag with a supervisor present and the supervisor drops it in the cash cart and rolls it to the cash office. Keep large bills under the till, if they are on top they are easy to see and easier for a grab and run. Consider purchasing locking till covers for registers that have money in them but are not currently in use. There are traveling shoplifting rings and till tap rings that have register keys and will open drawers if no one is paying attention. Till covers prevent someone from getting to the cash even if they open the drawer. Finally, when a register has too many large bills or excessive amounts of money, do a skim and take the excess to the cash office.

Cash handling policies can make your business safer and more profitable. Establish them and then periodically review them to ensure they are being followed.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

How An Alpha Cable Lock Can Pull You Out Of The Ice Age And Into The 21st Century.

January 26, 2017 by Leave a Comment

I was in one of the major retail stores the other day and was interested to see that the location had a contract security person at the exit. This is the only store in my area that I have ever seen a guard and it made me wonder why. Of course my law enforcement/loss prevention background peaked my curiosity, part of my DNA I suppose. I had to ask myself: Does the store have an unusually high level of theft, if so why? Are there procedural issues with the local authorities or slow response times? To my knowledge the store is not in a high crime area, comparatively speaking, so is it just a deterrent? If so is it a cost efficient means to prevent shoplifting?

 

I manage a loss prevention program for a large company and I manage all of the guard contracts for our locations. I do agree that guards are a good option in certain circumstance, don’t get me wrong, but is it a good use of resources in this instance? I am very well aware of the cost associated with full time guard services and it isn’t cheap. Based on the average rates for a security guard in my area it would cost approximately $11,000.00 a month to provide 24/7 security coverage for this store, not counting OT/Holiday Pay. Granted the sales at this particular store are probably substantial, but I also noticed these guards are not participating in any loss prevention activities. They are not watching shoppers or checking receipts and/or goods, there are no alarms at the door to notify the officer of a theft; so do they prevent shoplifting? Are they even utilized in the event that a shoplifter is detained by a retail or loss prevention employee? In my experience I would venture to say these guards are not having a significant impact on reducing theft, or providing any real deterrence. There are so many more cost efficient means to protect retailers and reduce theft.Using Security Guards, as a means to prevent shoplifting, is an antiquated attempt and should not be your first option.

 

If you are in retail I would highly recommend Alpha Cable Locks to secure your property. They are an effective and cost efficient method to protect your inventory and increase profit. I really like the device because it is durable, reliable and comes in various sizes to allow for use on different types of merchandise. The locks can be used at the retailers discretion based on the value, location, or the theft rate of the item. They are re-useable because they are attached to the merchandise at the store level, and removed at the time of sale. They are battery operated, which allows for a more efficient and dependable product. 

 

Alpha Cable Locks and many other Alpha Technology products are designed to secure and notify associates of theft, and reduce overhead, by supplementing existing loss prevention programs. So, as warm and fuzzy as that guard makes me feel when I enter the store (that is sarcasm by the way); their presence more than likely does nothing to prevent shoplifting.  As a police officer I have seen shoplifters go to great lengths to conceal property on their person, and I doubt the guard at the door will cause them to reconsider this type of behavior. So before you consider hiring security services, do your research, and become more informed on your options because each individual retailer is different. Don’t get stuck using archaic security practices when there are so many current and relevant options available to you. 

 

Get more information on Alpha Cable Locks, contact us or call 1.770.426.0547 today.     

 

 

Filed Under: Uncategorized Tagged With:

Protecting Your Business From Theft…Are You Doing Enough?

January 25, 2017 by Leave a Comment

The retail industry has been facing many changes for the last few years.  And although the nay sayers believe Amazon will eventually destroyed the retail industry, some experts believe the retail shops are  here to stay.

The issues that are affecting the retail industry are numerous though. Shoplifting and employee theft are costing the industry millions of dollars every day. Under-staffed stores, poor customer service and poorly trained employees, are bigger issues for the retail industry than Amazon is.

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

Are shoplifters getting it too easy?

Shoppers blissfully ignored a sign that only four garments could be taken into a department store dressing room. With armfuls of clothes and bags from other stores, customers entered and exited the fitting area, without supervision. It was a shoplifter’s paradise.

Two shop attendants frantically organised returns and refunds in a holiday-sale blur. Nobody enforced the dressing room policy, which is designed to reduce shoplifting risks, or watched customers to ensure goods were returned.

Whatever happened to department stores having a specialist assistant who manages the fitting rooms and is paid out of the security budget?

Visible signs of extra security – or much security at all, for that matter – were hard to find at this store. The main exit did not have a uniformed security guard. The handful of staff on the floor made no obvious effort to watch for thieves.

Protect your profits

Garden center owners share their stories of recovery and new strategies after thefts and break-ins. J.R. Pandy, a retailer in Ohio, explains how he’s continuing to fight for his business.

For as long as J.R. Pandy can remember, he’s been involved with the day-to-day operations of Pandy’s Garden Center in Elyria, Ohio, a business his parents founded around 1961.

“I think I was born here,” Pandy says of the grower/retailer he’s worked at since he was 12 years old.

Unfortunately, Pandy can also scarcely remember a time his family business wasn’t victimized by burglars, thieves, arsonists and other intruders and criminals. He says the garden center has been broken into and stolen from so many times throughout the years that the individual incidents tend to run together.

“I can’t even fathom to count that many times,” Pandy says. “It’s just an old hat — ‘Hey, we’ve been broken into, oh, great.’”

One of the most costly and recent burglaries at Pandy’s Garden Center came in May of 2015, when thieves entered the store grounds at night and made off with tools, trees, bulbs and other green goods. The thieves even took the store’s van, which was hotwired and driven off the premises.

Are You Doing Enough to Secure Your Stores?

Theft and robbery continue to rise, but new technology and planning can deter.

NATIONAL REPORT — Whether it’s violent crime, robberies, shoplifting or employee theft, convenience stores have been dealing with store security issues for years. New technology is allowing operators to amp up prevention and react faster to incidents, but in many cases — in c-stores and the entire retail industry — the situation continues to worsen.

“I’ve been involved in the convenience store industry for 40-plus years and the risk of loss has not changed. The most worrisome is robbery, and as c-stores evolved into 24 hours, the violence level increased,” Chris McGoey of McGoey Security Consulting told Convenience Store News.

Robberies are up all-around, specifically in convenience stores, as the latest released FBI statistics show robbery up 16.8 percent in c-stores/gas stations from 2014 to 2015. Rosemary Erickson, researcher, forensic sociologist and president of Athena Research Corp., based in Sioux Falls, S.D., says this is the largest increase she can remember in all the years she has been studying crime. Erickson has helped NACS, the Association for Convenience & Fuel Retailing, develop many of its security resources.

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Suggestions On How To Improve Inventory

December 29, 2016 by Leave a Comment

Each year retailers take inventory of their merchandise, counting what they have in the store, reconciling that information against sales receipts, vendor credits and receipts and markdowns.  Usually the result is some amount of shortage or merchandise shrink due to merchandise that cannot be accounted for and losses due to certain markdowns and damaged products.  I have in rare instances seen overages, but those are usually the result of offsets from prior year shortages often attributed to paperwork errors.  The store objective each year should be to improve upon the prior year inventory result.  Certainly the best case would be to have zero dollar shortages every year, but that is not a realistic expectation. I try to explain to employees that if one package of gum were to be stolen during the year, you have incurred shortage. There are steps a store owner or manager can take to work towards that yearly improvement and shoot for a zero dollar shrinkage year.

 The first step to improve inventory is to look at merchandise protection strategies in the store.  Are retail anti-theft devices being used to prevent shoplifting as well as employee and vendor theft?  A theft prevention system includes having an electronic article surveillance (EAS) system installed.  This would encompass EAS antennas at entry/exit points, EAS soft tags, labels and hard tags on as many pieces of merchandise as possible and deactivation pads and detachment tools at checkout lanes. By protecting merchandise with retail anti-theft devices, shoplifters and potential dishonest employees are deterred from trying to steal.  EAS protected merchandise also activates alarms if a shopper forgets about an item on the bottom of the shopping cart that has not been paid for and a tag is not removed or deactivated.  Remember, if merchandise hasn’t been paid for, regardless of the intention of the customer, it is shortage.

There are other things that a store can do to improve inventory results from one year to the next:

  • Consider offering incentives to employees who deter a theft through great customer service.  Employees on the sales-floor are your first line of defense against shoplifting.  If they are walking their areas offering assistance, they will walk upon a customer attempting to conceal merchandise, remove items from packaging or tamper with EAS tags.  Offering assistance, remaining in the area and communicating with managers is an effective method of deterrence without accusing someone of stealing. An incentive for reporting this type of activity may be the purchase of a drink or putting the employee in for a weekly or monthly drawing for a $5 gift card.  Be creative.
  • Education/Training – Make sure employees know what your inventory results are and how much was lost in the last inventory.  I always made it a point to share that information and celebrate it when we had good results.  Let your employees know that they make a difference.  Employees also need to know how to properly respond to EAS alarms and recover merchandise without making accusations.  When training is not continuous employees become complacent and begin to wave people out the door who set off an EAS alarm.  Eventually that complacency turns to ignoring the alarms altogether and the system is rendered useless.  Alarm activations also need to be recorded so managers can review for trends and ensure there are no malfunctions.
  • Make employee receipt checks and bag checks mandatory for EVERYONE.  Managers should be the first to show their purchases to an employee for verification.  When employees see that no one is exempt, they will not mind doing it themselves.  Accountability helps prevent theft.
  • Have a program in place for marking merchandise that is purchased for store use.  If  you have to get a pack of pens from your sales-floor for office use, purchase it or account for it through a ledger and then keep the package and mark it with a date and write “store use” or put a sticker on it.  It is easy for merchandise to start being used and not accounted for and it will accumulate in offices from the sales-floor.  Account for EVERYTHING, even a paperclip if it is store use.
  • Small, independent stores may not have corporate markdowns sent to them.  These stores need to evaluate their merchandise and if it isn’t selling, mark them down, but do it incrementally.  Start at 10 or 15% and see if you can move it.  You don’t want to lose profit margin.

Improving inventory is not an impossible task.  Utilize EAS technology to deter and prevent theft.  Educate and train employees and empower them with knowledge on shortage issues and how they impact it.  Profit from reduced shrinkage! 

      

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
« Previous Page
Next Page »