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.


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.


 

The Scary Truth About Not Preparing For Holiday Foot Traffic

I remember it like it was yesterday. It was a Black Friday morning and we had lines of customers jockeying for position at 16 front end cash registers, two pharmacy registers, a jewelry counter register and 2 registers at our electronics counter. Sure, there were a lot of people, hundreds if not a thousand at one time but we were handling it. I had our Loss Prevention team monitoring cameras, checking receipts at the front doors and walking the floor with “Security” jackets on to deter theft and prevent fights. The store management team had good plans in place for replenishing freight on the floor and giving employees breaks. I had worked with the Store Manager to control the flow of customers into our building and all had gone off without a hitch, no pushing, shoving or fights. I even had a number of police officers at our front doors aiding us with crowd control. We had really planned for every contingency, or so we thought. The one thing that we had not planned for happened and it was a major problem, our register system went down! The audible sighs, snide remarks, and expressions of anger and frustration were heard in one collective voice. All of our managers jumped into action trying to reboot registers and get systems back online. Ever so slowly we got things moving again but it was a nightmare and it made us realize the scary truth, we had not really prepared for everything as well as we thought we had. A number of shopping carts had been abandoned with Black Friday specials in them and no salesfloor staff available to re-shelve the merchandise.

Can stores prepare for every contingency? Quite honestly, no but that is not to say there should not be a significant amount of time spent planning for holidays and holiday foot traffic. The hard part is knowing what you should plan for and have a contingency plan if something “breaks” which will most certainly happen. What kind of things can you prepare for?

  • Are you hoping for increased foot traffic or planning for it? Hoping is wishful thinking something will magically occur. Small and medium-size retailers have to make good things happen. Big Box retailers are planning months in advance for what their “Doorbuster” items will be for Black Friday. They do bulk purchases of merchandise that will be one-time sellers. LCD televisions are one of the big promos I see each year. These are often not top of the line name brands and they are bargain priced to bring in foot traffic. Get people in the door and hit them with other sale items and promotions. The nasty surprise with this type of gimmick? What do you tell your customers when you run out? Were you fair in how you advertised quantities would be limited, no holds would be permitted, first come/first serve and no rain checks or substitutions will be given out? Be clear in your advertising and let customers who are waiting for that item know how many there really are. You may give out a ticket to each person in line who is waiting for that “Doorbuster” so no one else feels “duped”. You can save a lot of headaches for yourself.
  • Test your equipment. Have a professional come in and test your point of sale registers, your computers, and even your electronic article surveillance pedestals and deactivation pads. Do you normally run two registers during the year? Consider having a third for an increase in customers or as backup if one of your two breaks.
  • Are you intending to run your holiday season with the same number of employees you have all year? That can be a scary decision. If you are planning out your sales and promotions you will see more customers. Failing to have enough staff means you are not giving the level of customer service you need to and people will be put-off with poor assistance, abandon merchandise and leave the store. Not adding staff also means you will run your full-time crew ragged and they may quit. Holiday seasons can be stressful enough without feeling like you’re stretched too thin by your boss.
  • Finally, consider promotions for each of the major holidays coming up in the final quarter of the year. Candy giveaways for those who celebrate Halloween, a drawing for a turkey dinner for Thanksgiving, or a raffle promotion to get people into your building for Christmas shopping, Hanukkah, Kwanzaa, etc.

Holiday shoppers can make your financial year but you must be prepared. Careful planning will pay off in the end. Don’t be scared to step outside your comfort zone to reach new customers and drive profitable year-end sales. 


Can You Hear Me Now? Active Listening is Important To Great Customer Service

How often does it happen? You are in front of your television watching your favorite college football team playing a game and your spouse starts talking to you about their day or what you need from the grocery store. Then suddenly the conversation takes a nasty turn and you are asked for input about the conversation you weren’t really engaged in. The textbook reply, “Yes Dear” or “Sounds good Honey” are the first line of defense but your spouse is suspicious of your response and asks, “What did I say?”  Oops, you’re caught, you weren’t listening and you really have no idea what was said. The same thing can happen in retail but with a much different outcome and one that can cost you money. With your spouse you may be in the doghouse and it can be uncomfortable for a bit but usually things have a way of working out in the end. For a retailer,  it may end up with an  exasperated customer who won’t shop at your store any more.

Actively listening is critical for ALL retail associates. It requires paying attention to what your customer is saying and sometimes keeping an ear out for what is not being said. It is a skill that often has to be taught because we do not always give our full attention to what others say to us as I gave in my example of above. How does one really actively listen? By asking clarifying questions and repeating back what the customer has said to you. Here are some examples:

  • A customer is returning a shirt. A simple situation right? Do the refund and give the customer their money back and everything should be good. Not necessarily. What was the reason for the return? Was the merchandise defective? Did it not fit the way the customer thought it would? Did someone fail to give them proper assistance when they were looking for the shirt in the first place? By asking the right questions you may turn a bad experience into better one. If the merchandise was defective, what was the defect? Is it possible to prevent a bad experience for others by pulling that shirt brand and style from the floor and requesting a credit from the vendor? What appears to be a simple problem may have underlying issues that you would not know if you aren’t listening and asking customers questions about their returns.  Doing so let’s the customer know you do care about them.
  • Perhaps you are selling jewelry to a customer. Showing your shopper merchandise is fine but learning about the customer and what they need the jewelry for can build an invaluable rapport with your clients. Is the jewelry for a special occasion? What style and color of outfit is being worn? How about inquiring if the client is allergic to any metals? You may need to look for hypoallergenic jewelry. It is possible by asking the right questions you might be able to accessorize the sale or better yet sell the entire outfit.

A key part of active listening is the inquiry process and asking the probing questions that lead to a clear picture of what a patron wants.

In addition to the probing questions another essential part of active listening is repeating what the customer has said to you. Sometimes when we are listening to someone we hear one thing but what the customer meant was something totally different. Here is a good example from a social media post I saw the other day:

  • I want to eat Grandma
  • I want to eat, Grandma

Both have the same words but two TOTALLY different meanings. When we repeat back what we have heard in the form of a question we ensure we truly understand what our customer is asking for. We can ask our customer, “So, if I understand you correctly you want to eat your grandmother, would you like that with or without ketchup?” Our customer can then make it clear they do not want to eat grandma at all, that wouldn’t be very nice. The patron can rephrase the question and give more details on what they want. Giving our full attention helps us give our clients exactly what they want and need as we make recommendations based on what they have told us.

Focus on customer service by listening to your customers and make them the center of your attention. They will return the favor by coming back to shop time after time and spreading the word to their friends.    


Shoplifting and Illicit Drugs

For many years now, police departments and local shop owners have worked together to prevent shoplifting in their communities.  The relationship between drugs, alcohol and shoplifting are problems that they know exist and they intend to face and find solutions for them.

The bureau of Justice Statistics research found that more than half of the women arrested for shoplifting tested positive for illicit drugs, compared to two-thirds of the men. 

Police departments want to help retailers fight the shoplifting problem by being proactive and acknowledging the fact that drug addiction and shoplifting go hand in hand.

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


Honey, I Shrunk The Store.

While the “retail apocalypse” narrative is nonsense, it’s clear that we are witnessing a major contraction in traditional retail space. Store closings have tripled year over year and more surely loom on the horizon. The “death of the mall” narrative also tilts to the hyperbolic, but in many ways it is the end of the mall as we know it, as dozens close and even larger number are getting re-invented in ways big and small.

While the shrinking of store fleets gets a lot of attention, another dynamic is becoming important. Increasingly, major retailers are down-sizing the average size of their prototypical store. In some cases, this is a solid growth strategy. Traditional format economics often don’t allow for situating new locations in areas with very high rents or other challenging real estate circumstances. Target’s urban strategy is one good example. In other situations, smaller formats allow for a more targeted offering, as with Sephora’s new studio concept.


Police in Mentor are trying to stop shoplifting before it happens

Mentor police say that, according to the statistics, their shoplifting surveillance program is working, and fewer drug abusers have been arrested shoplifting.

Three years ago, officers in the Mentor Police Department noticed a correlation between drug use and “theft rings.” The department received a grant from the state to start the Retail Crime Theft Deterrence program. Officers who participate in the program keep an eye on retail stores in the city of Mentor looking for suspicious behavior, and for known drug abusers who have a history of shoplifting or other crimes.

The program, now in its third year, points to statistics showing a decline of admitted drug users arrested for shoplifting.

In 2015, police said 62 percent of those arrested for shoplifting were admitted drug addicts. That number went up to 72 percent in 2016, but so far this year, 37 percent of those arrested for shoplifting admit having problems with drugs.

According to information from the Bureau of Justice Statistics, more than half of women arrested for theft, and nearly two thirds of men, test positive for illicit drugs when they are arrested.

Mentor police Officer Jim Collier said retailers appreciate the program


Serial shoplifter who bit supermarket worker walks free from court

A SHOPLIFTER who bit a supermarket worker has avoided an immediate jail sentence.

Kerry Gallimore, of Chaucer Grove, Atherton, assaulted an Asda employee causing him actual bodily harm after being caught stealing food to the value of £78 in the town on January 13.

In other shoplifting offences committed in Atherton, the 28-year-old also stole plants to the value of £24 and £15 from Tesco on April 18 and May 25 respectively and £50 worth of make-up from Boots on June 15.

Gallimore was also convicted of dishonestly receiving a stolen 43-inch smart television valued at £600 in Atherton on May 3 and two counts of failing to turn up at Wigan and Leigh Magistrates’ Court after being released on police bail.


 

Employee Theft and Shrinking

It is not surprising that employee theft and shoplifting increases every year.  With online “chat rooms” where shoplifters share their “methods” and the many ways they can get away with shoplifting, it is not surprising the losses across the globe are reaching staggering amounts. 

In 2013, the losses due to shoplifting amounted close to $16 billion globally, a 34% increased over the previous year.  The National Retail Security Survey revealed that in 2015 retail lost an approximate $45 billion due to shrinking, up by more than a billion from the previous year.

What are the expectations for 2016, and 2017? What will the losses amount to this year?

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


Employee Theft on the Rise According to Latest Retail Survey

Major retailers lost over $44 billion in thefts by customers and employees according to Jack L. Hayes International’s annual Retail Theft Survey.

Wesley Chapel, Fla. — Jack L. Hayes International, a leading loss prevention and inventory shrinkage control consulting firm, has released its 29th Annual Retail Theft Survey.

According to the survey, 438,000 shoplifters and dishonest employees were apprehended in 2016 by 23 large retailers who were able to recover over $120 million from the thieves.

“In 2016, dishonest employee apprehensions increased almost 10%, with the dollars recovered from these dishonest employees up nearly the same amount (9.3%). While shoplifting apprehensions and the dollars recovered from these shoplifters decreased ever so slightly, 0.2% and 0.9% respectively”, says Mark R. Doyle, president of Jack L. Hayes International.

According to the survey, one out of every 27 employees was apprehended for theft from their employer in 2016. The total number, 53,786, is an almost 10% increase compared to last year.

Over $42 million was recovered from dishonest employees in 2016, up 9.3% from 2015.

Survey participants apprehended 384,296 shoplifters in 2016, a slight decrease of 0.2% from the prior year. The average shoplifting case value in 2016 was $203.18, a slight decrease from 2015 when the value was $204.57.


C-stores may suffer from a bundle of cash-related issues, but tech-driven solutions are on the way.

One of the show-stopping numbers from the musical “Cabaret” includes the famous refrain, “Money makes the world go ’round.”

But money also makes the world of convenience retailing complicated. And problems such as cash miscounts, sticky-fingered employees and lack of data around dollars can stop the show for eager-to-perform operators who have to devote valuable time and resources to solving these snags.

To help shine a spotlight on the currency concerns c-store retailers face, CSP and Technomic conducted their seventh-annual cash-management report, commissioned by FireKing Security Group (complete results below). Finalized in March, the study surveyed 175 convenience operators who make or influence choices related to cash flow, banking and cash management in their stores. Thirty-seven percent of respondents operate one store, while 63% operate two or more locations.

Results from this year’s study reveal big concerns—and opportunities—for retailers’ cash-handling practices.


The Amazon Approach to Groceries Won’t Replace Stores

It’s a model that could thrive in dense, affluent areas. Most areas are neither dense nor affluent.

For a certain kind of urban professional, Amazon and Whole Foods are brands that define the consumption of staple goods: the weekly trip to pick up cheese, produce, maybe some pasture-raised organic beef; and the nice UPS man dropping off everything else, from toilet paper to truffle oil. On Friday, those folks learned that they are facing a future of truly one-stop shopping: Amazon.com Inc. plans to acquire Whole Foods Market Inc. for $13.7 billion.

But what about the rest of America? Well, if you happen to work for rival grocery chains, the news is not good. Competitors from Costco to Kroger to Dollar General saw significant chunks knocked off their market capitalization. Other casualties may include Walmart, the $15-an-hour minimum wage (Amazon is aggressively experimenting with cashierless stores), and the rather unique corporate culture that drives Whole Foods.


 

How To Prevent Shrinkage With Technology

It is true the retail industry losses are staggering.  Losses due to shoplifting and employee theft are a problem that seems to have no solution.  Small mom and pop stores close their stores for good because of the losses they encounter and cannot recover from.  Big national retail stores have the capability to withstand losses from shoplifting and employee theft that other smaller stores cannot.

New technologies have been a help for many of these giants in the prevention of shoplifting and employee theft. The new technology has helped these retail stores prevent the crime before it happens or when they are happening.  Two of these technologies are: Video analytics along with video cameras and Face recognition software. They have played an important role in shoplifting prevention in the retail industry.

For more about preventing shoplifting and employee theft


Here are a 20 ways to make more money and boost your profit margins by minimizing loss in your business: – Modest Money (press release) (blog)

There’s an old saying that “you have to spend money to make money,” but it’s also true that one of the best ways to make money is to avoid spending money in the wrong places. If your business is spending too much money on unnecessary business expenses – or worse, if your business is losing money due to theft by customers or employee fraud – you are letting good money go out the door. And this makes it harder for your business to be profitable because you have to work that much harder.

Here are a 20 ways to make more money and boost your profit margins by minimizing loss in your business:

  1. Reduce Administrative Errors: Many businesses make seemingly simple mistakes in their pricing, paperwork or bookkeeping that lead to big losses over time.
  2. Prevent Employee Theft: Employees stealing from their own companies is a major cause of “shrinkage” or business profit loss. According to RetailNext, employee theft makes up almost half of the $42 billion in retail shrinkage each year.

How to tackle employee theft with real-time inventory

Minna Nurmisalo, project & marketing manager at MariElla Labels, takes a look at how real-time inventory can help deter employee theft.

No retail business wants to believe that they might be subject to theft from their own employees. Unfortunately, it is a very real problem. It might be stealing items on their person, or exploiting employee discount privileges to significantly reduce the price – either way, employee theft can account for as much as 28% of unexplained inventory loss globally, according to the recent Global Theft Barometer Report.

In order to prevent it, it is first important for employers to be aware why employees might feel the temptation to steal – from financial pressures in their personal lives, to general disgruntlement with their employers.

But irrespective of the emotional reason that causes employees to consider stealing, it all boils down to something very simple: they think they can get away with it.


Beat The Shrink: How Inventory Management Can Help Reduce Shrinkage

Retailers ate losses of more than $45 billion thanks to shrinkage in 2015, a $1 billion jump from the 2014 total. If this trend continues, the 2016 figure could exceed $47 billion!

How can so much inventory just walk out the door? According to the National Retail Federation, there are five main ways for your supply to disappear.

Sometimes it doesn’t even make it to the store. Roughly seven percent of shrink comes from the vendors in the form of overcharges or undersupply. Small businesses can be especially vulnerable to this if they operate on more informal bases with their supply companies. Check your contracts and make sure expectations are clear.

Human errors count for another 16 percent. Maybe someone ordered too much product to move in a realistic timeframe. A stocker accidentally slapped the wrong price on an item and led to an impromptu sales event. It could be something as simple as poorly-inventoried stockrooms that harried employees tally by physical count and tally marks.

Other times, though, goods may get a helping hand out the door.

Shoplifting counts for 38 percent of loss. People may steal for personal use. They might need to make fast money from a resale. It could be nothing more than they steal because they can, but the end result remains the same: Lost revenue and unbalanced books.




 

Cash Handling Tips That Can Prevent Cash Losses

Have you ever noticed that when a convenience store robbery takes place the crook never demands all of the credit card slips? I have never heard of a bank robber pulling out a gun and yelling for the teller to give them all of the checks in the drawer. What is it the bad guys are always trying to get their hands on…CASH! While Loss Prevention departments do work on credit card and fraudulent check cases our bigger concern is cash theft and fraud. It has been my experience that in many incidents involving a stolen credit card or check, I have been able to work with bank investigators and police detectives to identify and in some cases resolve those crimes. In those situations there is usually a victim as well as a perpetrator of the crime. When it comes to cash loss cases it becomes another matter altogether, the victim is the store. While we may have video of the crime there may not be any other means of tying in additional information. Another issue with cash losses is that the stolen money cannot be tracked further. Stolen credit cards tend to leave a trail of locations where they are used which can lead to greater opportunities to pick up on additional evidence. The same can be true with fraudulent check writing cases. With a cash loss case, once it’s gone you don’t see it again, money is not traced.

     What kind of situations can lead to cash losses? The first thing that comes to mind is internal employee theft. A cashier may steal directly from a register till and pocket the money. You could also have a cashier stealing from customers by short-changing them. I recall at least one case I had in which the employee was keeping back a dollar every so often from a customer’s change they were due back. Until a customer complained to the supervisor rather than going back to the cashier, I had no idea it was taking place.

     External causes of cash loss can include:

  • Robbery
  • Short change artists
  • Till Tappers
  • Counterfeit and fraudulent cash (fraudulent bills may be a $1 bill with two $100 corners pasted over two of the $1 corners. The other two corners are pasted on another $1 bill giving the bad guy $200 of value for a $100 bill and yes, it does happen when a bad guy tries to hurry a new or young cashier).
  • Grab and Runs

In all the cases of external cash losses there are cash handling tips that any store can use to minimize the risk of loss or the amount of exposure to loss:

  • Be sure to do daily bank deposits. Preferably contract with an armored car service to pick up money or drop off change orders. If you choose to conduct your own deposits vary the time of day and the route to the bank. Storing excess money in your cash office only increases the amount you could lose in a robbery.
  • Train cashiers to call a manager or supervisor for any transaction that is $20 or less and the payment is a $100 bill.
  • Train cashiers to never allow someone to put their hand in the till. Slam the drawer closed if necessary. If a customer is taking too long to look for change, the drawer should be closed.
  • Have cashiers place all large bills under the till and call for a pick up when the transaction is complete or have a cash drop at the register that can only be opened by a supervisor. This keeps bills from being seen by customers when the drawer is opened and prevents a grab and run.
  • Use locking till covers for registers. When a register is not in use but has money in it, the till cover prevents someone from getting to the cash even if they have a register key to open the drawer.
  • Cashiers should each have their own till. When multiple employees work from one register it is more difficult to pinpoint who may be causing cash shortages and dishonest cashiers know it.
  • Conduct register skims when they are over a pre-determined dollar amount. There is a temptation for dishonest employees to feel that the more money in the register the less likely a $10 or $20 bill will be missed. Lesser amounts in a register drawer also take away incentive for a potential robber.

There is always going to be risk of loss when cash is an accepted form of tender for your business. Minimizing that risk can be done through training and a few commonsense security measures.


Are You Ready To Catch A Shoplifter?

Big retail stores across the nation rely primarily in technology to prevent shoplifting according to industry analysts.  The physical loss prevention officers of long ago, are quickly being replaced by technology in the stores.  The interpretation and study of the data obtained fighting shoplifting and employee theft are invaluable during these times. 

While smaller stores rely on locking freezers to protect their merchandise, that is not feasible for most other stores. Smaller stores need to understand the problem, and find a  solution that is reasonable for them.

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


Retailer forced to use bike lock on chillers to prevent shoplifting

A Coventry convenience retailer has been forced to fit a bicycle chain lock on his chiller doors to prevent shoplifting after it cost him £12,000 last year.

Paul Cheema, owner of Malcolm’s Store, said as well as the bike lock, he had put bells on the chillers. He said the store had been targeted by gangs stealing large amounts of meat and cheese.

Speaking to Radio 4’s You and Yours, Cheema said: “One man took 32 packs of bacon and 20 packs of cheese. We put bicycle chains and doorbells on our fridges so every time a door opens an alarm sounds.”

He added that he was using social media to post pictures of suspects.


Eyes open: Catching shoplifters takes vigilance, prevention

When a retailer sees someone suspicious wandering the aisles, they can’t just call police.

Acting shady in a store isn’t illegal. Neither is putting an item in your pocket.

Under North Dakota law, an item must be taken past the last point of sale before it is considered stolen.

Jerry Cox, a regional manager for Valley Dairy in Grand Forks, said employees at their nine area convenience stores are trained to watch for shoplifters.

Often, he said, a shoplifter will pocket some items and purchase others. If an employee sees someone tuck something away between the aisles, they have to give the person every chance to pay. The clerk often will ask if there’s anything else they want.

“You have to assume they’re honest,” Cox said.


Using technology in today’s loss prevention career environment

“You don’t have to be an IT guy to understand cyber security, and it’s critical that you have enough of an understanding to know what questions to ask”

As an adjunct professor for AMU’s Center for Applied Learning, Dr. Robert Pittman imparts wisdom to next-generation loss prevention leaders, for whom he has the following warning—you can never “complete” your education. The world, risks, and business are always changing and loss prevention practitioners, and the loss prevention industry as a whole, must continually adapt. If not, individuals will find their career paths limited and the industry itself—just now gaining a seat at the management table—could be pushed to the background.

Today’s major retail operations are driven by technology, and entire supply chains rely on how effectively it is managed. Loss prevention practitioners need to have the skills to effectively navigate this tech-based environment if they want to advance their careers and help the LP industry thrive, Pittman believes. “Loss prevention used to be about focusing on the shoplifter in the store, but that’s completely changed. Those strictly physical security guys are quickly becoming extinct,” he said.


 

Tips To Prevent Shoplifting and Employee Theft

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

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


Law column: Dealing with employee theft

Policies, record keeping can help protect employers.

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

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

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

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

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


Top safety tips to prevent shoplifting

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

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

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

1. Know the signs

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


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

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

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

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

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