Preventing Shoplifting and Retail Shrink

Many small and big chain businesses across the country are fed up with the amount they lose due to shoplifting and employee theft.  The solutions are seemingly unavailable for these businesses and they are teaming up with local police departments to address this issue.

The Chico Police Department, The Chico Chamber of commerce and the Chico Business Association are teaming up in an effort to prevent shoplifting in their community.  This is not the only joint effort, many other states’ police departments and communities are getting together to form a coalition to find a solution to shoplifting. 

Shoplifting puts an additional strain on these businesses that in some cases are already having difficulty staying afloat and the losses incurred due to this crime make it an impossible business to sustain.

One the many ways they lose to shoplifting is to organized retail theft that involves many individuals and can cost a store thousands of dollars in a single day.  Home Improvements stores targeted by individuals can damage the bottom line of these stores even though they are big retail chains that can offset the cost due to shoplifting better than the small business owner.

In some states, theft legislation has put many business owners scratching their heads. The losses they incurred due to shoplifting, they see as a direct consequence to the legislation government officials passed in their states.  Preventive measures are not enough, youth programs to prevent shoplifting and violent crimes are not enough for these businesses because they do not see it happening soon enough for the well being of their stores.

What are some other alternatives to prevent shoplifting?

  1. Training – Trained personnel can make a big difference in your store. Recent reports in the UK have shown a dramatic increase in violent incidents from the previous year due to shoplifting.  The difference between a trained employee and one that is not can be the difference between life and death
  2. Shoplifting prevention systems – If you do not have one and rely solely on your employees, the losses your store is suffering may be staggering.  A shoplifting prevention system is a necessity for a retail business, and the amount invested in such system may be the best investment you can make for the success of your store.
  3. Software that works together with the loss prevention system and the trained personnel in your store are pivotal to the success of your retail business.  It is a process that needs all the parts to work together to be successful and to achieve its purpose.

Shoplifting is a crime that affects society in general, and the prevention of such crime seems to be the only alternative retail businesses have. Prevention includes training your personnel, investing in a loss prevention system and software that can help you mitigate the losses due to this crime.  Those three preventive measures cannot work if your employees are not engaged and are not willing to work with you in the prevention of this crime.  Happiness in the workplace is important but if you are dealing with disgruntled employees, preventing shoplifting may be very hard to achieve.  Talk to your employees and find out if you need to address that issue first and foremost.


Management Communication And Cohesion Lead To Stronger Teams

 A unified leadership team for any business can be a catalyst for driving great results. When managers are all communicating with each other, sharing information and giving honest feedback an entire team benefits. Managers in those environments tend to see the big picture and can assist a peer in another department in their absence. As the staff members see this cohesion they understand that they can’t get one over on a supervisor or pit one against another. A management team that works well together can prevent situations where an employee may lie and not get caught or manipulate managers by playing what I call the “Mom vs. Dad” card.

Working in a library, I see student workers trying to manipulate one or two “nice” staff members on a somewhat regular basis. The students may not see what they are doing as lying or being dishonest, they just know that there are certain supervisors who will probably say “Yes” to almost any request. The request may be to leave early or they want to call out of work for silly reasons. I had one employee who wanted to leave early because her pet fish was sick, even though she had spent one hour of her two-hour shift at work when she made the request. Now seriously, was she going to take this fish to a veterinarian? She chose the wrong supervisor to approach because the supervisor came to me and told me of the request and asked me for my opinion. While I gave the student the option to stay she was reminded that requests for leaving early impacted hiring decisions for the next semester. She stayed for her next hour.

In another situation, I had to have a conversation with a worker over her behavior with co-workers and supervisors. I made it clear the behavior would have to change and steps on how to improve. I did let her know I wanted her to be successful but I would not allow the behavior to continue if she was going to work for us. The employee came back later and attempted to give her resignation and turn in her equipment to one of our nicer staff members. The staff member was super sweet and was going to let it go with a, “I’m sorry to see you go.” The supervisor who was with me when I spoke with the employee walked in on the conversation and the mood changed. The employee tried to lie about the conversation and what was said to her. This supervisor cut off her excuses and reminded her what was really said during our talk. The employee left in a huff but the blame game was shut down. When the first supervisor was asked why she was just going to let the employee make her complaints and leave the supervisor said she liked to give people the benefit of the doubt. It’s no wonder why employees like to go to her to get what they want.

While we have a great team of supervisors, I do have problems with some who do not like to be the “bad guy”. A management team needs to share the burden of holding employees accountable for their actions. It is unfair to expect one or two supervisors to conduct discussions involving poor performance or behavior problems and/or administer corrective actions. These supervisors are the ones who appear to be the mean ones to the team members and acquire an undeserved reputation as being “unfair” or “harsh”. The best management teams are those in which everyone participates in the corrective action process. They document talks with employees and record them in some form of record keeping so when review time comes around those notes play a part in the scoring. These teams also have supervisors taking partners with each other making it harder for one person to be pitted against another.

There will always be those employees who try to get away with something whether it is not working as hard as their co-workers to outright lying to a supervisor. Those management teams that communicate amongst themselves and share the responsibility for administering correction or discipline when necessary will find it easier to identify and keep the best workers. Build a great store team by creating a cohesive management team that communicates with each other and shares the responsibilities of leadership.


Assuming Employees Know What You Want Is A Poor Assumption

As managers and supervisors, we are all guilty at some point of assuming our employees will know what we are wanting from them when we make a request or assign a project. It may be something as simple as asking someone to empty a trash canister or as complicated as resetting a plan-o-gram. In our minds, the requested task may only require common sense but to the employee, it may be something totally different. Take the trash can example, you may ask an employee to empty it and assumed they would empty it into a compactor and place a new trash can liner inside. The employee may only hear that you want them to take the bag out and place the trash beside the compactor. They don’t hear you tell them to put a new liner inside the canister when they are done because you never said it. It seems like it should only be common sense but it isn’t necessarily the case. The same problem exists for every aspect of a job. Sometimes those of us in management positions make unfair assumptions and then get angry when our team members don’t do what we expected them to do.

If you were to ask someone to clean a public restroom in your store you would expect specific tasks to be done, fill the paper towels, mop the floors, clean the bowls, etc. The military is one of the places we can take a lesson from. It is never assumed a person knows anything.  In military basic training, a person is treated as though they are devoid of all knowledge. A Drill Sergeant tells you exactly how that restroom will look and every detail that needs to be accomplished from mopping floors to polishing sink fixtures. Failing to meet his/her expectations results in the full fury of their wrath being heaped upon your pitiful soul (yes, the writer knows this from personal experience). As far as the Drill Instructor is concerned a recruit knows nothing and they remind you of that fact in a very loud voice. Don’t even suggest that your mother taught you how to do something because your mom apparently doesn’t know anything either. Managers should take a similar approach to training their employees. This is not a recommendation to begin treating new hires as boot camp recruits simply assume they don’t know anything and show them what you expect.

This raises the question, “Can’t I assume someone I hired with a retail background should be able to run a cash register or merchandise a clothing fixture?” The answer is no. You can’t forget that points of sale vary and procedures are also different amongst retailers. While the learning curve may be smaller the fact of the matter is every employee still needs to learn the ropes of a new job. One store may organize clothing racks by colors while another is only concerned with styles and sizing. A new hire with prior experience will pick up on the new way to do things quickly but there is an adjustment that they will have to make.

Business owners and store managers must also be sure to review all shortage and theft-related do’s and don’ts with new hires. If a store policy is that a cashier cannot ring a transaction for a relative then that needs to be explained to the employee. It is acceptable to have a list of what is not permitted and have them sign the form indicating they have read it and understand it. For example, a list may look something like this:

  • No ringing transactions for friends or relatives
  • Purses and jackets must be kept in lockers and are not permitted at a register
  • Changing a price for an item requires a manager approval
  • No drinking or eating merchandise that has not been paid for
  • No taking cash from a register
  • Do not keep or use lost gift cards, credit cards, checks, etc.
  • All employee purchases must be accompanied by a receipt

This is not an exhaustive list but it does give a good starting point. Should an employee violate a policy they have acknowledged they understand it becomes extremely difficult for them to wiggle out when caught.

We owe it to employees to teach them what we expect and the reasons why we have them do something. When team members understand why they are doing something they are more inclined to do it to the best of their ability. This translates into more productive and happier employees and a happier you as your employees understand what it is you expect from them. Ultimately this leads to a more profitable store and that should be every owner’s goal.


Valentine’s Day and Shoplifting

Some of the most stolen items in stores in the United States are not surprising.  From Infant formula to razors, people are stealing these items to sell them for quick cash or because they are shoplifters that are dedicated to doing this crime. Valentine’s Day is approaching, and some of the items that seem to be gifted during this day are among the most commonly stolen items in the United States.  A shoplifter will steal any time of the year, whether the opportunity presents itself or not, or whether it’s a holiday or a weekday.  As a store manager or employee of a store, greeting and treating a customer politely can gain you a customer, and deter a shoplifter from stealing from your store.  Customer service has been proven time and again to be a great deterrent to shoplifters, and cannot hurt to be polite and competent with your regular customers.

Here are the ten most commonly stolen items in the United States:

1. Alcohol – It is not surprising that alcohol is one of the most sought items to steal.

2. Makeup– small items that are accessible on the shelves  and that can be concealed with very little work, makeup is one of the hot items to steal every day of the year, not only during the holidays

3. Fashion accessories -including creams, sunglasses, belts, and scarfs can easily be concealed and carried away between jackets or other loose fitting clothing

4. Mobile Accessories– From chargers to cases and everything you need for your smartphones and Ipads are some of the items many shoplifters can steal and that are easily sold elsewhere for a profit.

5. Beauty and Hygiene items but especially razors are one of the top items shoplifters seem to prefer to steal.

6. Lingerie – February 14th. is just two weeks away, and believe it or not lingerie seems to be very popular to give and receive during this sweet holiday.  If you are a retail store and sell Valentine’s day items, prepare your employees for the shoplifting that may occur.

7. Meat – Red meat is not good for our health, but apparently shoplifters like to steal meat from supermarkets and is one of the most commonly stolen items today

8. Baby Formula– One of the most stolen items today is baby formula. Shoplifting baby formula and then selling for a profit seems to be the way shoplifters prefer to do this and stores across the country seem to be feeling the pinch

9. Chocolate – For Valentine’s Day, chocolate is a favorite for many people.  Keeping a lookout for this item can probably reduce your losses a bit this February and throughout the year.

10. Over the counter drugs– With the price tags of some of these over the counter medications, it is not surprising many people are choosing to steal them instead.


 

Sweethearts In February Are wonderful, Sweethearting Deals Between Employees And Their Friends Are Not

It is the time of year again when Cupid starts shooting his arrows and couples fall in love. What is more romantic than the marriage proposal in a restaurant and a ring presented in a glass of champagne? How about sweethearts strolling along the beach under a moonlit night? Is there anything more touching than the couple that has been married for a very long time and they still walk hand in hand wherever they go? Sometimes love makes us do something dumb to try to impress the apple of our eye. In one instance, a prisoner escaped from jail because he was worried how his wife might react to all the time he had been spending in jail. In another instance, a man robbed three waffle house restaurants and a 4th business in order to pay off his girlfriend’s probation fees (both from mentalfloss.com, “11 Strange Things Done in the Name of Love,” by Jennifer M. Wood, Feb 14, 2014). Perhaps it is the purchase of a ring we can’t afford but we are determined to show our love and commitment to the person we are enamored with. Love is fine and we may even excuse behaviors we might normally consider silly when two people are in love. What is not acceptable is when love and friendship turn into “Sweethearting” deals in a retail business.

 Sweethearting is a theft or fraud activity that transpires between two or more people who know each other. At least one is an employee who provides special deals to his or her friend(s) and sometimes co-workers. The transgressions often start out small. They may involve giving a small discount on a drink or snack. Maybe it is “accidentally on purpose” overlooking an item while scanning merchandise through a register. More often than not what starts off as a little gift or friendly gesture evolves into a big problem. That boyfriend or girlfriend starts coming to the store more frequently and checking out in their friend’s line. What may have started out as the occasional extra candy bar in the bag or a large drink at the snack bar for the price of a small drink quickly turns into outright passing and theft.

If the activity is going to take place at the register, the cashier may send a text message to the friend alerting them that they are on a register and will look for them to come in. There are a variety of ways the two can rip-off the store. The cashier can ring merchandise up and discount it so it appears the transaction is legitimate. The employee can fail to ring up merchandise and bag it which becomes a passing situation. There is also the tendering of money that can result in cash shortage. The friend hands over a cash payment and the cashier gives too much change to the patron. This is a difficult type of theft to see transpire because money does change hands.

Sweethearting also takes place when an employee intentionally looks the other way when her friend is in the store shoplifting.  This does not require the employee to take an active role in the crime. All that is required is for the employee to make a point of turning a blind eye to the theft as it is being perpetrated. There are times when the two parties plan out when the friend will come to the store and steal. This also means the employee is now an active participant and aiding in the commission of the crime which is much more serious on the part of the staff member.

Encourage your team to be friendly and courteous. Go above and beyond in the service you offer to customers. Love your shoppers, just make sure your employees aren’t being sweethearts in the process.


 

Should They Stay Or Should They Go? What To Consider With Seasonal Hires

It’s that time of year when all store owners and managers start to make personnel decisions. Remember those people you hired in late August, maybe in September or even as late as October or November? Remember the conversations you may have had with them discussing how this was a “seasonal” position? You may have really dangled the carrot in front of them and told them that if they worked hard and showed initiative they might be retained on your staff after the holidays. Guess what? It’s time now for you to start taking a hard look at your staff and making some decisions and that isn’t always pleasant. Now you have to evaluate those employees and consider whether you want to keep them or you may have to decide if you can afford to keep them.  What should you be thinking about at this point with regard to employee retention decisions?

Performance

You may have told the employee that retention after the holiday season would be based on their performance. Did you take time periodically to watch how this person interacted with customers or other employees? Did you ever get any customer complaints about how this employee treated them or compliments about their service? Did you keep track of those complaints or compliments so you would have something to fall back on should you choose to end their employment? Having documentation in hand makes it easier to have those conversations. The other resources you need to rely on are your supervisors. It is wise to have a management meeting to discuss each person’s opinion about a seasonal worker. One person may like the way the employee performed on a cash register while another had issues with sales floor performance. Getting several perspectives will give a better picture of an employee during the season.

Punctuality

Review an employee’s time sheets or attendance record. If you don’t keep track of tardiness or call-outs you should start. Just because a supervisor or manager says someone was always late or always called out does not mean it was so. It often happens that during a busy time or when everything seems to be going wrong that if someone shows up late to work it is inflated in our minds. We are prone to feeling like this is a regular occurrence when in fact it only took place the one time. The employee may have called out another time but the heat of the moment distorts the reality of the employee’s attendance record. Review documentation so you know whether punctuality or attendance was really a problem.

Attitude

I shouldn’t have to include this one but sometimes the obvious isn’t so obvious. What kind of attitude was displayed while this person worked? Did they arrive to work with a negative attitude? Perhaps they were always negative about customers or even talking about other employees. A poor attitude can rub off on others and become a drain on morale. I can’t emphasize enough the importance of getting rid of someone who displays a poor attitude. I should also mention that it is worth giving consideration to someone who always has a sunny disposition. Just as a negative attitude spreads a black cloud over the other workers and can be sensed by customers a positive attitude can have the same impact. Shoppers like feeling welcomed and that their business is appreciated. Co-workers enjoy being around a fellow employee who makes work fun or knows the value of a warm greeting. This does not mean this worker does not have to be able to perform but they may not need to be a superstar if they bring something of value to the table.

Honesty and Integrity

Has this staff member demonstrated an impeccable record of honest behaviors? Are you confident this person has proven to be honest? If you track register overages and shortages take a look back at this employee’s daily register tallies. Be sure there is no concern over shortages or overages either of which could be an indicator of theft. Has there been any question about a purchase or a package check inspection? Is this person always upfront about issues they have encountered? Even something as seemingly small as having a friend punch a time clock for them indicates an integrity issue at the least. If you have a concern it would be in your best interest to cut this person from your roster.

Ending a seasonal employee’s job isn’t always easy but it is necessary. Make sure you use sound criteria and good judgment when deciding if you will keep or release someone after the holidays.


Now that the holidays are over does that mean theft is too?

 Whew! You made it through the holidays and hopefully, you were successful in deterring shoplifters and survived the fraudulent return attempts but does that mean you can rest on your laurels? Unfortunately, the answer is “No”. Criminals do not take a break because you do. As a matter of fact, you could find that this is a prime time for criminal activity to increase. Why would that be? It is during these next few weeks and months that traditionally retail owners and managers begin to tighten up payroll. They release their seasonal employees and reduce the hours budgeted to the various work centers. This leads to several theft concerns:

  • If given too much advance notice that the end of their employment is imminent there are workers that may get angry and justify stealing because of a perceived injustice. This person may think they worked hard enough to earn a permanent spot on the team or assumed they would be retained based on what they thought they were told when hired. Some managers feel a bit guilty for having to let seasonal employees go and feel an obligation to give a significant amount of advance notice so the person can look for new work. The best way to avoid this situation is to give a seasonal employee a date they will work up to and no later than during the interview process. By doing so the employer can give a reminder a week out that the last day is approaching. This gives the worker time to start looking for other employment and does not give too much lead-up time for them to start stealing if they may be so inclined.
  • As sales decline after the holiday season, managers and owners have to make budget decisions on payroll expenditures. It is not reasonable to spend the same amount of money on sales floor coverage with reduced customer counts. Where you had three or four cashiers during the last few months to ensure customers were served quickly you may now have only one cashier. The staff members that were getting 32 hours a week may be down to 25 hours a week. If the employee is dependent on that income to make ends meet and their hours are cut they may decide that stealing is a way to make up for what they have lost. 
  • When seasonal employees are released and hours reduced to cut back on payroll expenses, sales floor coverage starts to wane. This means there are fewer people to provide customer service that is one of the critical components in theft deterrence. Shoplifters know when there are fewer employees present and find it easier to avoid those few workers that are on the floor. Remember that one of the three things needed to shoplift is the opportunity and with less chance at discovery, more opportunities to steal present themselves.
  • There are operational functions that may suffer due to a reduction of payroll hours. Specifically, merchandise protection strategies including electronic article surveillance tagging of merchandise may not be as thorough. As an example, if a freight pusher is responsible for tagging products with retail anti-theft devices but they are struggling just to get freight stocked on the floor in the allotted period tagging could be a secondary issue. The focus may be on filling the floor in order to sell rather than protecting it to prevent theft.

Criminals are not going to take a vacation after the holidays. They will look for stores that lower their defenses and then take advantage of them. Be on guard as you come out of the busy season and things seem to slow down. Be wise in how you reduce seasonal employee staff and do what you can to encourage the people you are keeping. Make plans to identify and address potential problems that may arise from those decisions. Strategic planning and follow-up can minimize the chances thieves will try to target your store.


Retailers’ Biggest Nightmare: Shoplifting

Big corporations across the globe worry about cybersecurity attacks and the repercussions those attacks have on the corporation’s bottom line. These cybersecurity attacks to their servers and information databases can be costly and can bring with them costly lawsuits as well.  But, according to many analysts, employee theft and shoplifting are the more concerning issues affecting the retail industry.  They alone account for more than two-thirds of their shrinkage and that figure seems to be rising every year.  During the holiday season, those issues become more problematic and costly, and the retail industry looks for ways to prevent the great loses they will certainly suffer during this jolly time.

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


This crime in the workplace is costing US businesses $50 billion a year

There is a hidden risk facing small businesses across the country that often goes unnoticed until it suddenly rips through a firm’s finances: employee theft. It’s a crime that is costing U.S. businesses $50 billion annually, according to Statistic Brain.

Matt Ham can attest to that. He has had two run-ins with thefts by employees at his small business, Computer Repair Doctor, which has eight stores in Florida, Ohio and South Carolina, which collectively totals 30 employees.

At a store in Florida, two employees were caught stealing parts from inventory and skimming cash about a year and half ago, he said. After a thorough investigation, Ham sat them down with his attorney and they came up with a plan for restitution. Both employees had to pay back the thousands of dollars they stole. The chain has now put more safeguards in place, such as better inventory controls and a strict cash-counting process.


Survey finds no let up in one of retailers’ biggest threats

Nearly all retailers fell victim to organized retail crime during the past year. And the losses are mounting.

 Ninety-six percent of responding retailers experienced ORC in the past year, according to the 13th annual ORC study by the National Retail Federation. And 67% reported an increase in this type of activity during the past year.

The survey of retail loss prevention employees found that losses averaged $726,351 per $1 billion in sales, up from $700,259 last year. Los Angeles continued to be the hardest-hit area for ORC in the nation, a position it has held since 2012. Following in order were New York City, Houston, Miami, Atlanta, Chicago, Orlando, San Francisco/Oakland, Orange County, Calif., and Northern New Jersey.

“Organized retail crime continues to be one of the biggest challenges to retailers of all sizes,” NRF VP for loss prevention Bob Moraca said. “These crimes happen across the country every day, with criminals getting smarter, more brazen, more aggressive and sometimes even attacking store employees and shoppers. Fighting ORC is a full-time job, and retailers must learn how to stay a step ahead of these thieves.”


Loss Prevention Trends to Watch During the Holiday Shopping Season

All retail eyes are focused on online security and digital transactions during the holiday season. But according to the National Retail Federation (NRF), shoplifting and employee theft accounted for more than two-thirds of inventory shrinkage in 2016. Retailers need to improve their internal security systems to boost their loss prevention abilities and keep their shrink rate from rising above last year’s historical high of 1.44 percent.

Retail store shrinkage is a known part of the industry, but with all the attention centered around cybertheft of customer information and implementing proper security measures at point-of-sale (POS) systems, the age-old problem of losing products at the physical store has taken a back seat.

Leveraging Cybersecurity Technology for Loss Prevention

Technology is playing a larger role across all retail efforts, and some of the tactics employed in the back office to protect the company’s digital data can be expanded to store-level prevention. The specifics of the skills needed differ between cybersleuths and on-the-floor store personnel, but more education and discussion between these disciplines can help.


 

Bad Santa (this one is on the naughty list)

Could it be that Santa Claus is not always a jolly, giving man? Oh yeah. Take a look at this Santa. He (or I guess it could be a she) is out for a little cheer for…. himself. Regardless who they are, customers need to be watched. In this case, the store let their guard down because of the costume. Shoplifters use deception and costumes to steal.

In this case, the Santa costume allows plenty of room to hide merchandise. Shoplifters will make or modify clothing to become a shoplifting tool. We call these “booster” items. Booster coats, dresses, skirts, pants and more. I have even seen booster “bloomers”. They are worn under a loose fitting skirt or dress. The shoplifter drops a merchandise item through what looks like a pocket in the outer garment and into the bloomers which are secured at the knee. A lot of merchandise can be concealed that way. We once caught a woman with four cordless drills including batteries concealed that way.

Other costumes include religious clothing. How about a Nun? I have caught one of those. It was a difficult “habit” for her to break. Even someone who dresses as a member of the Armed Forces, a security officer, repairman, phone company technician with tools and a toolbox. A shoplifting team may use a person like this to distract your attention or create a scene while the others steal.

Another booster item could be a false bottom gift-wrapped box. Your merchandise Items go in the bottom with a trap door. Shopping bags are yet another tool. Especially ones from your store. Our inclination is that whatever is in there, was already purchased. Or they put stolen merchandise under merchandise that they did purchase.

The general rule of thumb is that shoplifters want to blend in with your regular customer look. Take a look at this video of a customer that “blended in” but was bottomless:

If your average customer wears a suit then that is the way the shoplifter will dress. If they wear shorts and flip-flops, then that is their targeted look. But a costume that portrays confidence such as uniforms, religion, public servant… is like hiding in plain sight. We dismiss that person “because an XXX would not be stealing from me”.

If a costume makes people uncomfortable, they would tend to avoid that person. Someone dressed in an outrageous way such as a stripper (okay, not too many places to hide something), odd clothing combinations and colors or some of what we can find at the People of Walmart website probably qualify.

Of course, no story on shoplifting costumes would be complete without a creepy clown. So if I have not weirded you out too much, then happy hunting!


Proper Preparation For Holiday Gift Returns Reduces Fraud

The end of the holiday gift buying season ushers in the inevitable holiday gift return season. Clothes that don’t fit, ugly holiday sweaters no one really wanted, toys that were too old for a young child or too young for the older child all lead to returns, exchanges, and refunds. For those who have been in retail for any length of time, we know that many of these items will be returned without tags or a receipt and not even a gift receipt. It also means people will try to return merchandise to your store that was never even purchased there, despite what the customer in front of you says. This means it is prime time for those who engage in return fraud. There are so many people making returns that trying to separate legitimate refunds and exchanges from the fraudulent ones is difficult. There are steps you can take to minimize the number of fraudulent returns you accept.

  • Ensure you have your store return policy clearly posted at the points of sale all year round but make it especially prominent during November and December.
  • Encourage cashiers to remind customers of the store return policy at the time of purchase. If there is a time limit to how long a customer has to refund an item that should be stated.
  • While some stores have gone to print as well as emailed receipts if your store has instituted this recommend that patrons use BOTH options. This means that even if a receipt is lost it should still be in their email.
  • Open packages to see what is inside even when shrink-wrapped. The really good criminals will know how to seal a rock inside a box to make it look normal.
  • Require a government-issued I.D. card with no-receipt refunds. It may sound extreme but those persons who engage in fraud are less likely to do so if they have to produce a picture ID.
  • For no-receipt refunds require an exchange for a like item. Criminals have gotten to the point where they are willing to accept in-store credits what they don’t want is the merchandise. Exchanging for a like item defeats their purpose.
  • Be ready for the returns. If possible have one return line for receipted returns get customers through more quickly. Have a second line for no receipt refunds/exchanges that may take more time to process. You will make life easier for the customers with receipts and you give cashiers the opportunity to be more thorough with no receipt returns without feeling pressured to hurry through the transactions.
  • Don’t leave a regular employee alone with a line of customers, have a manager at the return desk or register too. Most customers will be understanding of wait times and return policies but some won’t be and hourly employees shouldn’t have to put up with the added stress caused by upset “no-receipt” returners. Fraudulent returners also look for employees who appear to be young or relatively new. Having a manager up front can discourage some of these people.

Being aware in advance that fraudulent returns will be attempted helps prepare managers for the situations when they arise.

It should also be pointed out that gifts are not the only items that will be returned fraudulently after the holidays. A lesser-known practice called wardrobing will also be conducted by dishonest customers. Store owners should be aware that these will be the Christmas or New Year’s Eve partygoers that don’t want to rent an outfit or buy it outright. The problem with this group is they are returning their merchandise with the tags intact and with a proper receipt. Unless they are returning the items outside of a specified policy it can be very hard to put a stop to this activity. An example might be if a store has a 30-day return policy and a customer attempts a return on day 31. This would be a clear reason to turn down the refund. The only sure way to prevent this fraud is for a store to use devices known as wardrobing tags on clothes to keep it from occurring. Loss Prevention Systems Inc. can provide more information on this type of fraud for store owners or managers interested in deterring the activity.

Not all no-receipt refunds during the holidays are fraudulent but a significant number are and it hurts a store’s profit margin. Make preparations now and put control measures in place that will make it hard for criminals attempting to cheat your business.