Could Good Training Help Prevent Deaths In The Retail Industry?

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It is not rare when the news report another death from a shoplifting incident.  Organized crime is a global and national problem affecting millions of people, and the retail industry loses billions of dollars every year due to shoplifting. LP personnel deal with highly strenuous situations every single day they try to apprehend shoplifters, and their safety is not always guaranteed.  What are you doing as a retailer to ensure the safety of your employees?  Are you doing enough? Is their training subpar, or are you enlisting the best possible training for them to do their job?

To read more, click on the links below.


Employees charged with fatally crushing shoplifting suspect

It was the middle of the night on Feb. 7, at a Florida Walmart Supercenter, when Kenneth E. Wisham, 64, allegedly decided to steal $380.74 worth of DVDs.

Pushing a shopping cart stacked high with them, Wisham tried to leave the store without employees noticing, but when they did — and then confronted him — the man ran, police said, tugging at his falling pants along the way.

At some time Wisham fell, the initial police report said, and three Walmart employees detained him.

Twelve hours later, Wisham was dead.

Reports from police at the time hinted at a medical mystery that had overtaken the 64-year-old man, who stopped breathing while he was being detained. Wisham never regained consciousness, despite lifesaving efforts at Walmart and the hospital, and died later that afternoon.

Two days later, the Polk County Medical Examiner’s Office performed an autopsy.

The cause of death, officials determined, was mechanical asphyxia by restraint, meaning his airwaves were suppressed during a struggle. Wisham also had 15 broken ribs.


INVESTIGATION: Female shoplifting on the rise at some Cleveland-area malls

A string of shoplifting incidents at several local malls have one thing in common — predominantly female suspects.

Strongsville police tell newsnet5.com that women have made up the majority of shoplifting arrests at the South Park Mall for several years. But the number of female arrests is on the rise.

In 2014, 66 percent of shoplifting arrests were female suspects. In 2015, 68 percent of shoplifting arrests were women. And so far this year, 71 percent all shoplifting arrests have been female suspects.

Beachwood had nine reports of shoplifting involving female suspects at Beachwood Place over the last two weeks, according to police reports.

A $5200 Chanel purse was stolen from Saks Fifth Avenue, along with clothing from H&M, jewelry from Claire’s and six different incidents at Sephora, racking up several hundred dollars worth of pocketed cosmetics.


GPS anti-theft device leads deputies to Saks shoplifting suspects

WESLEY CHAPEL, FL (WFLA) – Three woman suspected in a retail theft at the Tampa Premium Outlet Mall are in custody, each facing multiple theft charges.

Pasco County Sheriff’s Office deputies arrested Toccara Huff, Ayanna Palacio and Sharhonda Pedroso Tuesday. Deputies said the women entered Saks Fifth Avenue and ran out with $1,539.78 worth of merchandise. Investigators caught up with the woman 15 minutes later, about 8 miles away.

The arrest was recorded on a deputy’s body camera.

“You’re going to be going to jail for felony retail theft, OK, because the clothes you stole from the store had a GPS tracker on them,” the deputy says.

“I ain’t did nothing,” one of the suspects said.

Deputies used an anti-theft tracking device that was attached to merchandise from Saks Fifth Avenue.

“It was a complete surprise to them,” Sgt. Richard Jones said.

Deputies said this is the first time they’ve caught suspects using a GPS tracker. “Obviously criminals will be more creative in committing crimes, so obviously, law enforcement, loss prevention have to be just as creative in catching those criminals,” Jones said.


 

HOW SOCIAL MEDIA CAN HELP BUILD SUBSTANTIAL SHOPLIFTING CASES

Facebook and other social media sites can be a proverbial gold-mine of information; especially if you are dealing with a rather stupid criminal. In my job, I see and interview dozens and dozens of “professional” shoplifters every month. My job is to get as much Intel as possible from them and make bigger cases. Often, that means working very closely with local and state law enforcement officials and even other retailers. No other time have I had such a prolific criminal than with “Jane”.

I first met Jane at my home store (I am responsible for 30). My agent apprehended Jane and several of her cohorts after they attempted leaving the store with several hundred dollars’ worth of clothing concealed on them. After they left for jail, I started my research. Facebook has become my first stop. 10 seconds later I find her page. Completely open to the public. First thing I see is this:

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It doesn’t take a rocket scientist to figure this one out. As a seasoned investigator, Just looking at this told me it was stolen. Based on some other photos, I knew this came from one of my stores. Since Jane was nice enough to keep her profile public and include a time, date and location stamp on those pictures, I started my research. Within an hour, I found corresponding CCTV footage of her entering another one of my store locations. Sure as heck, I had video of her stealing everything in this picture. I started scrolling from there. I found that she was also returning stolen goods for gift cards. She posted some shots of a few from my stores. In the comment section (which generates a lot of activity) she was kind enough to take a photo of the rear of the card. I suspended the funds

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With all this great information, I decided to compile it all and share it with law enforcement and my LP contacts throughout the state. I was able to make some significant cases on this very prolific shoplifter from some simple research on a social media page. In fact, the evidence was enough to cut several warrants for her arrest, which caught up to her relatively quick in a place, far, far from her home.

To me, what’s even more ridiculous is reading the comments on her “items”. It would seem as though everyone on her “friends listsocial3” is well aware of how she is obtaining the merchandise and are even encouraging the actions. These are the types of people that hurt big box retailers and that can put small shops out of business. These are the shoplifters we need to focus on and the ones that the criminal justice system need to come down hard on. The only thing that will stop Jane from stealing is being behind bars. This is her full time job.

Jane is not alone. Across the country and in every city, there are shoplifters that are targeting your stores that do this for a living. They steal full time instead of getting a job. As Loss Prevention professionals, these are the cases that deserve prosecution to the fullest extent allowed by law.

So the next time you’re dealing with a shoplifter, take the extra step and see what you can’t uncover from their online footprint. You may be surprised at what you find!


STEP NINE

shoplifting5It’s a normal day at the office. I’m working on a few cases and an email comes across from a manager at one of my stores. There’s not much to it; just says “John” called the store looking for you, here’s his number. Curious to who John is, I immediately give him a call. In my mind I’m thinking it could be a detective, or an Assistant District Attorney maybe.

Two rings and John answers with a very chipper, “Hello!” I tell him who I am and that I am returning his phone call. John was very vague. He said he wanted to tell me something, but really wanted to do this face to face. I had no earthly idea who this guy was and asked if we had ever met. He said no and after a bit of coercing, John tells me that it involves shoplifting and that he really wants to speak with me in person. I agree to have him come to the store the next day.

Not knowing what I may encounter, I asked a Sheriff’s Deputy friend of mine to be in the store, just in case. Turns out I didn’t need him, though. I finally met John the next afternoon. He gave me a hearty handshake, looked me directly in the eyes and thanked me for meeting with him. What happened over the next 40 minutes is something I’ll never forget in my entire life.

John is in his mid-thirties. On the outside, he’s an unassuming guy. Clean cut, well dressed and well spoken. Once the door was closed, he took a deep breath and told me that he was a recovering heroin addict and that he had stolen from my store in the past. See, John has been clean for 19 months and part of his treatment is to make amends for the wrongs he’s done.

I was interested in John’s story and how he cleaned himself up. As with any addict, he had to hit rock bottom. The final straw was living in a trailer, with no plumbing with 15 other addicts. John told me that using the restroom consisted of sharing a bucket. One evening he passed out after shooting up and woke up with both hands in that bucket. That was it for him. He went home and asked for help. 19 months later, he is clean, working and starting to support himself again. Those of you that have experienced what heroin can do to a person should realize just how much of an accomplishment this is. Most people don’t or can’t get clean.

Heroin is an epidemic that is destroying our neighborhoods. It is prevalence and ease of access is making a prolific comeback across the country. A good majority of addicts turn to shoplifting to help fuel their addiction. John was of those.

John told me that it started by making returns for other users of stolen goods. They’d get a gift card and run it to a pawn shop for quick cash. As time went on, John worked up the courage to steal. The very first thing he took from my store was a pair of shoes. “Stealing itself is an addiction as bad as the heroin” he recalled. From there he moved on to clothing and other high dollar items. He even would take orders for other dealers. He could trade items or gift cards for the heroin. This went on for months. He was never caught.

He reached into his top pocket and pulled out a folded piece of paper. He handed it to me and it was a list of everything that he could remember taking from the store, along with its approximate value; Nearly $8,000.  John again looked me in the eye and said, “I’m going to pay you back every penny that I took from you.”

Speechless I stared blankly for a second. Never in my career have I been faced with something that has truly touched me in such a way. I felt inspired by his story. If this guy can get his life together and make things right, then any little problem I was having that week just seemed so insignificant. I had to stress that he was under no legal obligation to pay us, but he insisted. The feeling of a weight being lifted off of your chest was how he described finally coming into the store and having this conversation. For him, this put him one step closer to completing his treatment, and ultimately getting his life completely back. While I don’t often have a soft spot for shoplifters, John, for me is something more than that. He’s a person and he’s helped me understand how I can be more effective in protecting my company from loss while also understanding that the people that I come into contact with all have their own set of demons.


LP Personnel And Safety

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The billions of dollars the retail industry loses every year due to shoplifting and employee theft have not decreased, but rather will likely continue to increase every year.  Deaths due to shoplifting are not rare anymore.  News about managers and employees getting shot while trying to stop a shoplifter is commonplace now.  Training your LP staff to follow strict regulations when approaching a shoplifter should be a top priority for your business.

Read more about this topic by following 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.


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.”


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.

“Loss prevention professionals continue to do an exceptional job at locating the issues and finding solutions to prevent additional loss in their retail stores,” said Dr. Richard Hollinger, University of Florida criminology professor and lead author of the NRSS. “It is important for retailers to continue building relationships with law enforcement and leverage new technologies that can further provide protection to their assets, customers and employees.”


 

Fighting Shoplifting In Your Store

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Prevention is one of the most important aspects of  loss prevention.  Trained personnel with the ability to respond effectively when a crisis arises, can save lives and money to the retail store. CCTV while providing a great help to loss prevention personnel, and being used by most retailers, is often viewed as dated technology that even when used is not used properly.  Trained personnel on the floor can be a powerful prevention “tool” for the loss prevention team, while providing a deterrent to the possible shoplifter entering your store.

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


LP101: Commitment to Loss Prevention Training & Development

As contradictory as it might sound, the stability of our loss prevention program is largely dependent on our ability to react and respond to change; and that begins with our people. The evolution of a successful and productive team is an ongoing process. Every member of our team has both personal and professional objectives and agendas, all of which will impact their approaches, their performance, their outlook and their potential.

Most managers understand the importance of getting the right players on their team, and putting those players in the right roles. We attempt to hire talented individuals, place them in positions where we feel they can be most successful, and provide them with the appropriate loss prevention training to meet the needs and expectations of the job.

Establishing and maintaining the expertise necessary to perform our required function demands that we develop the knowledge, skills, proficiencies and abilities of our team. Strong loss prevention training practices help build success. We train to cover the bases—the rules and guidelines, the fundamental competencies of the job, the essential ground rules that help to make people better at the position that they are in.


IN LOSS PREVENTION, DATA — AND YOUR GUT — IS KEY FOR DECISION MAKING

Have you ever experienced a nagging feeling before you’re about to finally make a big decision? You’ve weighed all the data, you’ve considered every angle, but something is keeping you from moving forward. Rather than ignore that nagging feeling and forge ahead, Shelley Row says we need to get to the bottom of it.

Row, an author and expert on executive decision-making, addressed a group of loss prevention professionals gathered for the NRF PROTECT Loss Prevention Conference and Expo — a group that faces difficult decisions on a daily basis, be it combating shrink, performing interrogations, investigating organized retail crime rings or responding to active shooter situations. In researching and interviewing executives about their decision-making process, Row related what she heard to neuroscience and the mechanics of how we use different parts of our brain to make different kinds of decisions.


Loss Prevention: Research Findings from Professor Martin Gill

I recently led a study looking at the future of loss prevention.

Supported by Marks and Spencer but involving representatives from loss prevention in leading retailers, the study posed questions on the scope of loss prevention work; how budgets are set and influenced and how expenditure and on going work is justified; and the perceived effectiveness of a different measures used to mitigate loss. A full copy of the report is available here.

What did the study find?

Sometimes technology is presented as an unqualified good, but this is to oversimplify the position. Sure, it offers real opportunities to better understand threats and therefore to improve the response.

But getting the right technology is tricky. There is a lot out there and determining what is best is one problem, and things change quickly; it can be difficult to keep up.

And offenders use technology too, and rather effectively, committing offences from afar. These people can be difficult to detect and even more difficult to prosecute.


 

Shoplifting; A Social Problem With No Clear Answers

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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 SHOPLIFTERS CAN DECREASE THE VALUE OF YOUR BRAND

theft (11)I’m sure you’ve already read how shoplifters cost you money. It’s probably hard to digest the dire financial implications that shoplifters have on all of our businesses. Without adequate controls in place, you are putting your business and your financial well-being at risk, and honestly, you just can’t do that. That’s why we have to have a camera system and why EAS systems are a necessity and not just a “nice to have” technology. That’s exactly why we have to invest in exception reporting tools to help us identify criminal activity and why we preach the value of exceptional customer service in our stores.

Value. Your customers shop with you because you provide them with value. They could shop at 12 other stores and some of them might even be more competitively priced than you, but there’s something that draws them into your store. That’s the value of your brand. Retailers have a following just like any band, performer or Hollywood movie start. Believe it or not, you have fans, some of which will refuse to shop anywhere else. Ever stop to think what it is about your store that causes this? There could be several reasons, really. In my personal experience (I have a few stores that I exclusively shop at for different needs). All have a few things in common.

In stock position is number one on my list. If I am going shopping, I normally know exactly what I want. I don’t spend a lot of time browsing and normally don’t need a whole lot of help from a store employee. I simply expect that the item I want be available for me to grab and go. Having available inventory for your customer is key component to your success.

If you’re constantly targeted by shoplifters and dishonest employees, those in demand items may not always be available for your legitimate customers. How many times have you walked a customer out the door because you didn’t have the thing they were looking for, even though you do stock that particular item? More times than you care to admit, I’m sure. So not only did you lose the item to theft, you’ve lost the sale to the customer as well. If that happens enough times to enough customers, you’ll be known as the retailer that “never has what I need in stock”.

Customer engagement is another factor I consider. I don’t often ask for help, but when I do. I expect an employee to be readily accessible, close by, knowledgeable and friendly. I also want to know that the employee is aware that I am in their area and available to help should I need it. This makes me feel that my business is wanted and appreciated.

Shoplifters will target stores that they know they can operate in with impunity. Those are the stores where employees ignore customers (you know the stores I’m talking about here). If a thief knows you are not paying attention, they will rob you blind and then come back for seconds. Customer service is one of the best methods to deter a criminal.

As a retailer, you have to offer value to your customers. You definitely can’t do that if your employees don’t engage your shopper, you don’t have the item in stock and your prices are out in left field compared with your competitor. Setting yourself apart from the competition is what drives business into your store and will keep you in business. As retailers and small business owners, remember that your brand carries value. Whether it’s a positive or negative value rest solely on your shoulders and has a direct effect on how your approach shrink and external theft. 


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.


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.)


 

Do You Need To Build A Loss Prevention Team In Your Store?

shoplifting1According to the National Retail Federation-NRF organized retail crime costs the retail industry approximately $30 billion each year. 97% of the retailers surveyed admit to being victims of organized retail crime in their stores, and the problems of organized retail crime, employee theft and shoplifting do not seem to abate.  The solution to this devastating problem seems to elude retailers, law enforcement, and communities across the country.

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


How to Build a Loss Prevention Program in a High-Risk Store

Integrating an effective loss prevention program can yield dramatic improvements when it comes to mitigating inventory shrinkage. But aligning an LP department appropriately within the structure of an existing company is not an easy thing to do. It is crucial to ensure that the LP team becomes an essential component of the entire store process.

Which Stores are High-Risk?

It makes sense to target the stores with the highest amount of loss risk first in order to make the greatest impact from the very beginning. When Stage Stores decided to realign its loss prevention department in the early 2000s, for example, the LP corporate manager worked with regional managers to rank stores based on shrinkage performance and its change over time.

Other attributes that were factored into the grouping evaluation included geographic location, internal and external theft history, and employee turnover rates. They eventually landed on a bundle of 50 stores that could be designated as “high-risk” and decided to focus their attentions on these stores.


Employee theft cited as largest cause of retail loss

Crime cost retailers £2.34 billion last year, according to a recent survey conducted by conference series Retail Risk London, and the UK Retail Fraud Survey 2016.

Employee theft was identified as the single biggest cause, with 68% of retailers citing it as their top area of loss.

Published by Retail Knowledge and sponsored for the second consecutive year by WIS International, the survey is the most extensive report into the systems, processes and strategies of the UK’s top retailers available, and covers retail transactions accounting for some 32% of all UK retail sales online and offline through 34,950 stores across the UK.

Shrinkage rates vary by retail sector from mass merchants and department stores at 2.68% of sales to a low of 0.25% of sales for hospitality and leisure retailers. However, mass merchants and department stores have seen a massive increase in shrinkage rates since last year, of 58% whereas hospitality and leisure retailers have seen a decrease of 38%.


Employee involved in retail theft ring that stole $11,000 from Clinton outlet store

CLINTON–Police are trying to find a group responsible for stealing $11,000 in merchandise from a store at Clinton Crossing.

A group that was connected to an employee at the POLO outlet in the mall was able to steal the merchandise between January and March 2016. The scam worked by having the employee, who was a cashier, void large transactions but still place the merchandise in shopping bags for the customers. The customers were involved in the scam, and left with the stolen merchandise.

The same “customers” were involved during all the transactions.

The employee at POLO admitted to the scam, but she refuses to name the other suspects. Police are not yet naming her or saying if she’s been charged.

The suspects may be from the New London area. If you have information please call Clinton Police at 860-669-0451 or email [email protected].