Awareness and Steps to Prevent Shoplifting

shoplifting4There are shoplifting rings that target stores all across our country. People get arrested and charged with shoplifting every day. Merchandise is stolen by customers and employees alike. It is quite impossible to prevent shoplifting 100% of the time, but you and your employees can take steps to prevent or mitigate some of the losses. Recognizing and understanding the items that are a clear target for shoplifters can help you establish some type of security around those items. Educating your management and employees about steps to help prevent shoplifting can help you deter possible shoplifters in the future.

Follow the links below for more information about shoplifting.


5 Quick and Low-Tech Tips To Prevent Shoplifting in Your Retail Store

As a small business retailer, it’s not always easy to just throw money at problems like shoplifting and take advantage of all the technology that big box retailers may be privy to. Whether it’s cameras, door scanners, or facial-recognition software, sometimes their big-ticket cost just doesn’t fit with your small business security budget.

But when you recognize facts like shoplifting costing retailers upwards of $13 billion each year, it’s important to identify it as a problem that needs to be dealt with.

So, what’s a boutique owner to do? In this post, I’ll be looking at cost-effective and low-tech tactics that you can start implementing right away.

Let’s dive in.

1. Keep Your Store Organized and Products Well-Placed

How easy should it be to identify whether something has gone “missing” from your store? Empty space on your shelves should be enough of a visual cue to signal something has gone wrong.


How to Prevent Shoplifting With Effective Retail Loss Prevention

Shoplifting occurs every day in retail stores around the world. There are times when the items truly are needed, but others, just have a need to break the law. Retail loss prevention teams and systems are available to prevent shoplifting from your retail store.

You cannot be too careful these days and reduced profits mean that the store is not making enough and the owner is not earning enough to support him or her family.

Plain Clothed Loss Prevention Team

Many retailers are using plain clothed security personnel to help loss prevention. These individuals watch suspicious customers and alert store staff.

The video cameras are closely monitored and if any items appear to be missing from their pile upon exiting the dressing rooms, the plain clothed security officer will detain the shoplifter.


10 Steps to prevent shoplifting

Theft is a serious threat to the bottom lines of retail businesses.  Shoplifting is prevalent due to the fact that is relatively easy to commit and has minimal risk when compared to other crimes.  Shoplifters come in the form of all races, ages and economic status.  In fact, in many cases shoplifters have enough money on their person to purchase the items they are attempting to steal.   Shoplifters look like everyday people.  In the case of shoplifting, shoplifters are everyday people who steal.  According to the National Association for Shoplifting Prevention   more than $13 billion worth of goods are stolen from retailers each year.   Shoplifting losses affect every retailer regardless of what they sell.  These losses result in profits and increased prices.  Here are 10 steps that retailers can take to prevent shoplifting from their stores.

  1. Post warning signs: Make those that enter your store aware of the consequences of stealing from your store.  Determine your shoplifting policy and communicate it to your customers with posted signs. Signs should warn that shoplifting will result in prosecution.

Preventing Shoplifting

shoplifting1Managers in your store can play an important role in preventing shoplifting. Being aware of the procedures to take when a shoplifting incident occurs protects your employees and your store alike. Shoplifting education programs through the NASP can help organizations prevent shoplifting and educate their employees. The rules and procedures to take by employees when a shoplifting incident occurs can save lives, medical bills and negative publicity occurring from a shoplifting incident. Follow the links below for more news about shoplifting.


Walmart Manager Says He Was Fired After Stopping Alleged Shoplifter

For several years now, Consumerist has reported on variety of stories where a former Walmart employee says they were fired either stopping a shoplifter or defending themselves in an altercation with customers. The latest such incident involves the manager of an Alabama Walmart who claims he was dismissed after stopping an alleged repeat offender from shoplifting again.

AL.com reports that the former manager was blindsided when he was fired a month after he chased and confronted a shoplifter attempting to steal nearly $1,000 worth of merchandise.

The man says the incident occurred during the night shift, when he heard an alarm signaling that an emergency door was open.

When the manager reached the door, he saw a man he described as an habitual shoplifter leaving with a cart full of merchandise.

“When I caught up to the individual he turned and grabbed me, struck me in the face and dragged me to the ground,” the manager says. “I got loose and was holding him down when security personnel from an apartment complex across the street came to help until police arrived.”


VIDEO: Teens ‘Terrorize’ Marysville Grocery Store

MARYSVILLE-

Five teenagers entered a Marysville Save Mart around 1:40 p.m. Wednesday and “terrorized the store,” police say.

A Marysville Police spokesperson told FOX40 four teenage girls and one teenage boy vandalized the store aisle by aisle, shouting out gang slogans and throwing grocery items on the ground. One of those items, according to police, was a bottle of oil, which caused a 64-year-old man to slip and fall.

The retired Air Force veteran was taken to Rideout Medical Center and treated for a potentially fractured elbow, according to police.

Store managers told officers on scene that employees tried to stop the teenagers, but one punched the manager in the face. At some point, police say the teenagers went to the liquor aisle, opened a bottle of alcohol, and started drinking.

The two officers who responded to the incident have minor injuries after one of the teen’s resisted arrest.


Arrests made in two Kroger shoplifting incidents

Two shoplifting incidents were reported Thursday at the Kroger grocery story on U.S. Highway 29, according to Athens-Clarke County police reports.

In one incident, Mary Ashley Moss, 22, of a Johns Creek, Ga., address was charged with shoplifting after swapping price tags on some items and concealing other items as she checked out of the store. According to a police report, Moss told Kroger managers “she did not think it was stealing since she was paying for something in the process.” According to police, Moss was attempting to take $50 worth of hygiene products. She was released from the Clarke County Jail after posting a $1,500 bond.

In the other incident, William Joseph Adams II, 47, of Timber Ridge Lane in Colbert, was charged with shoplifting after allegedly taking $75 worth of meat from the store.

Adams left the store in a blue Ford Fiesta that was stopped shortly after the incident, headed toward Madison County, by Athens-Clarke police. Adams was released from the Clarke County Jail after posting a $5,000 bond.


Profit and Loss – It’s All About the Basics

theft (11)Most people don’t mind doing what they should do when it’s easy or when it doesn’t get in the way of what they want to do. However, it takes discipline and maturity for people to do the things that should be done, whether they want to or not. Discipline and maturity are usually the differences between a successful manager and an unsuccessful one.

Successful managers know that being conscientious about preventing shoplifting is an on-going process of training and vigilance, which is why most unsuccessful ones don’t do it. Ineffective managers don’t develop and monitor the effective daily habits, for themselves and their employees, required to prevent shoplifting loss.

It’s unfortunate, because the margins between loss and profit are usually so tight that unaddressed loss can mean the difference between the business staying open or closing. There are many quick and practical ways that managers can help their employees develop the daily awareness and habits required to limit the opportunity for customer fraud. One of the most effective is also one of the most basic.

Most people are quick forgetters and they need on-going training (print, video, classroom style, one-on-one) to help them remember the company’s loss prevention plan. Once, during the orientation, is definitely not enough. Training modules which are short (about 15 minutes), monthly and topic specific (i.e. shoplifting techniques, proper confrontation of suspect, store’s prosecution policy) can be very productive.

Productive training makes sure everyone receives the same information and reinforces the company’s expectations and policies. It will, also, instruct, remind and reinforce the employee’s responsibility in preventing loss. Education and understanding is built on repetition, so repeatedly hearing who, what, when, where, how and why people steal can make workers more conscientious.

However, this is where the maturity and discipline of the manager is vital. If not conducted properly, training can hinder rather than help. The training time and materials shouldn’t be used for managers to pontificate, story tell or criticize, they should be teaching moments only. After all, it’s the failing of their managers when employees are expected to know things that they haven’t been told.

Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction. She’s an educator, consultant, lecturer, trainer and facilitator, who has conducted over 200 workshops, trainings, presentations, college classes and seminars.


Employee Theft and What’s Ahead For The Retail Industry

theft (12)Well trained personnel in a retail store can be an asset for your business. Employees that are poorly trained and poorly rewarded are very unlikely to look for the best interest in your store. Employee theft is common, and a poorly rewarded employee with lots of responsibilities is likely to feel taken advantage of and not feel an obligation towards you or the business. Investing in your employees and the security of your store should be a goal for your business this year. Follow the links below for more information about the state of the retail industry and other stories.


The NRF BIG Show: What’s in Store for Retail in 2015?

Over the past several days the retail community has converged on New York City for Retail’s BIG Show 2015. More than 27,000 industry leaders were on hand at the Jacob J. Javits Convention Center to welcome the 2015 retail calendar in grand fashion.

“The retail industry continues to race forward with innovative models, more tightly integrated channels, and fresh ideas to win over consumers,” says Matthew Shay, President and CEO of the National Retail Federation. “But no matter what’s shaking up the industry, one thing doesn’t change: Retail’s Big Show is always a showcase for what’s new, a place to build partnerships and a look into the future of retail.”

The EXPO Hall

Approximately 700 solution providers and other vendors blanketed multiple levels of exhibition resources in the EXPO hall with the latest in new products and programs. There were fascinating demonstrations throughout the hall demonstrating everything from marketing tools and customer service products to analytics solutions, robotics, and an innovations center where many of the latest products were demonstrated.


Police: Serial shoplifter tries to steal thousands in clothes from Kennewick store

A Hermiston woman with a history of shoplifting arrested is suspected of trying to steal thousands of dollars of clothes from Macy’s at Columbia Center mall.

Jessica M. Reddick, 31, tried to leave the store Monday night with $2,000 worth of clothes, police said. She is banned from all Macy’s stores after several incidents where she allegedly stole items from various Tri-City stores.

A security officer stopped Reddick as she tried to leave through the men’s department, police said. She was arrested and booked into the Benton County jail on suspicion of theft and burglary.

Reddick also reportedly had four felony warrants out for her arrest — all related to theft or shoplifting.


Behind your back: How retailers can curb employee theft

Shoplifting is what makes the news but, according to the National Retail Federation, the number one source of retail theft in the United States is committed by a retailer’s own employees.

Respondents in the group’s U.S. Retail Fraud Survey ranked cash theft as the second biggest area of store loss, bookkeeping and other administrative errors third, and shoplifting the fourth. But the first? Employee theft, experienced by 38% of those surveyed.

Theft by retail employees costs companies $14.9 billion annually, more than 46% of losses, according to the ADT/ University of Florida study.

“Employee theft is often a more serious problem than customer theft, especially in retail and food service,” says Forrest Burnson, inventory management researcher at software review company Software Advice.


Shoplifting Stories and Stats

shoplifting4Many retailers invest thousands of dollars to protect themselves against theft. From surveillance to electronic devices, these retail shop owners try to find a way to reduce their shrinkage in a daily basis. Whether they are dealing with petty shoplifters, employee theft or organized groups, they have to know their problem first to be able to find a solution they can implement in their store. To read more about this common problem, follow the links below for more information.


EPD: Retail theft up in 2014

EASTON — The Easton Police Department reported a 61 percent increase in retail thefts in 2014 — from 163 retail theft cases in 2013 to about 263 in 2014.

In response to this increase, the EPD announced that each month it will release photographs of all individuals who were charged with retail theft.

There’s an understanding that to better prosecute and deter thefts, a partnership between retailers and law enforcement is vital, EPD said.

In August 2013, EPD also started a Retail Investigator’s Network, which brings together retail loss prevention/asset protection investigators, prosecutors and law enforcement from Easton and Denton.

During these meetings, solved and unsolved investigations are discussed, which has increased closure rates in Easton and Denton, police said. These meetings have opened lines of communications between retailers. These meetings are also used to educate everyone in crime trends and other criminal activity that’s associated with retail theft.

In 2014, retail loss prevention/asset protection investigators and law enforcement in Easton and Denton have saved retailers about $142,722, EPD said.


Dover Police See 19% Drop In Reported Shoplifting Cases Since Posting Arrests Online 1-6-15

The Dover Police Department saw a 19% drop in shoplifting complaints since beginning the Shoplifter Notification Program on August 7th, 2014.  The program which posts mug-shots of persons arrested for shoplifting on a weekly basis on the department website and social media outlets, has helped to reduce shoplifting incidents during the 4-month trial period.  The reduction in shoplifting incidents during the trial period also led to a 12% drop for the entire calendar year compared to 2013 numbers and bringing the total number of shoplifting cases below 1,000 for the first time since 2010.

From 2011 through 2013, the Dover Police Department investigated 3,290 shoplifting cases, averaging 3 per day during that time period. In an effort to help reduce the amount of shoplifting cases in the City of Dover, the department began the weekly notifications, displaying the names and booking photos of those arrested. The goal of the notifications is to notify Dover merchants of offenders in hopes of being able to reduce the number of shoplifting cases. The majority of shoplifting cases are committed by repeat offenders and the department’s goal is that by releasing the information, store employees will be better informed when monitoring their stores and inventory, and that suspects will think twice before stealing merchandise in fear that their name and photo will be shared with the public.


The Flowerpot Bandit: Man ‘holds up petrol station’ wearing a flowerpot on his head and wielding a chainsaw, but only manages to steal a bottle of soft drink

A teenager has been arrested after he allegedly held up a petrol station while wearing a flower pot on his head and wielding a chainsaw, though he only managed to steal a bottle of soft drink.

The man entered the 7-Eleven service station in Ipswich, Queensland, at 4.30am on Monday, wearing a flower pot on his head in an attempt to conceal his identity, it will be alleged.

He is accused of lunging at the shop assistants while holding a running chainsaw, and demanding money from them.

Chainsaw attack: The 19-year-old held up a service station wearing a flower pot on his head. He then made demands for money from the male attendant

The terrified shop assistants, who were cleaning a coffee machine at the time he entered, claim they then retreated into a back room and called police.


Law Enforcement and Retail Loss Prevention Partnerships

law-3Shoplifting 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.


Cycle Counts

shoplifting2With 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.


Does Your Business Culture Encourage Employee Theft?

theft (2)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.


What’s Trending in the World of Shoplifting?

shoplifting1Wouldn’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.


Post Christmas Blues

theft (10)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!