HOW TO SPOT A SHOPLIFTER

theft (8)What does a shoplifter look like? How do you know if someone is going to steal from you? I get asked these questions all the time by store associates and mangers. The real answer is, a shoplifter doesn’t fit any specific demographic. There is no common appearance to a thief. I’ve personally apprehended 12 year old kids, soccer moms, grandmothers, lawyers, doctors, truck drivers, college professors in addition to the professional thieves. There are a few tips to look out for that you should share with your teams.

Looking around/up for associates and/or cameras

Most people shop by looking at the product in front of them. I always get suspicious when I see someone looking everywhere but in front of them. Subjects that are constantly looking up (for cameras) are pretty easy to spot; when’s the last time you looked at the ceiling at the supermarket? These people usually catch my attention rather quickly.

Grabbing items without regard to size, color or size

If I’m shopping for a pair of pants, I am looking for a specific style and size. Thieves who are looking to steal to resell usually will just take whatever they can get their hands on. If you see someone walk by a display of clothing and just start randomly selecting product, they may be planning on stealing that product from you.

Clearing pegs/shelves

If I’m buying *electronic item x*, chances are, I’m only going to buy one. If you notice someone clear an entire peg or shelf, especially if it’s a high risk product, which is another great indicator that their intentions may be less than honest.

Wearing unseasonal clothing

This one is my favorite. Every time I’ve seen someone wearing a coat in the summertime, I’ve ended up throwing them in jail for stealing from me. If it’s 90 degrees outside, someone wearing a thick coat should send up some major red flags.

Staging merchandise

Maybe you walk by a quiet corner of the store and see a subject place a few pairs of headphones on a back aisle. Perhaps they decided not to purchase them; or perhaps they’ve staged them to steal after they’re convinced that the area is clear. I’m always suspicious of buggies of product near fire exits. Often times, a thief will stage product prior to committing the theft. If you find product out of place, it’s best to simply return it to its home location

Removing/attempting to remove EAS devices

No brainer, right? If you walk by someone and they are really struggling to remove an EAS device, they probably don’t have intentions on buying the item. If you, or your team see this, the customer should immediately be given customer service. I usually ask if I can help them with the security device… it gets the point across that I am aware of their actions, without me actually having to say anything accusatory.

While not every shoplifter will demonstrate the same overt acts, if store personnel are attentive and engaging with all customers, these behaviors can be picked up on and properly relayed to store managers. Remember, there is no better anti-theft tool than a well-trained, attentive employee. By looking out for these subtle cues, your team can better protect your #1 financial investment, store inventory.


HOLIDAY SAFETY TIPS FOR YOU CUSTOMERS AND YOUR EMPLOYEES

theft (12)It seems like the months of November and December are just ripe for criminal activity in our stores. These are the months that we see a spike in not only internal and external, but other, more serious crimes like burglary, armed robberies, car theft, and purse snatchings. Over the last decade, I’ve put together some holiday safety tips for my stores and I’d like to also share them with you.

One of the most common crimes that occur in our parking lots during the holiday season are vehicle burglaries. Busy shoppers are running from store to store and packing their cars full of goodies. Valuables left in plain sight attract criminals like a moth to a flame. What’s worse is that with all the hustle and bustle, often times, shoppers inadvertently leave their car doors unlocked. This one is simple to solve. First, leave all valuables and gifts in your trunk, out of sight. Second, LOCK your doors. I once partnered with local law enforcement in a store I had significant issues in and printed up some small reminders. We gave these out to every customer during checkout all season long. The customer’s appreciated the tips and we saw a reduction in parking lot incidents.

Another common theft for criminals this time of year is stealing from your customers while they shop. A busy mom sets her purse, or cell phone on the top of her buggy. In a split-second, she turns around to wrangle the kids, or to grab a hot deal. When she turns back, her purse or phone is gone. I’ve seen this happen so many times, and each time it could simply be prevented. Don’t leave your personal belongings out of sight, ever. I make it a point when I’m walking my stores, or even when I’m out shopping, to educate people on how to best protect their belongings. The last thing someone needs is to have their purse full of their hard earned money stolen right before Christmas.

We can talk about customer safety all day long, but what about your teams? We all have an obligation to keep them safe as well. Our early morning and closing teams are usually the most vulnerable. Remember that there is safety in numbers. When closing, it’s best that the entire team leave at once, with the manager, as opposed to allowing them to leave individually. This will help reduce the risk of personal crimes late at night, in addition to an after-hours robbery. The same should go with your opening team. Once the manager arrives, all employees should then get out of their vehicles, instead of waiting outside the doors. Closing and opening managers should also make it a point to drive around the perimeter of the store to look for signs of forced entry and any suspicious persons and/or activity.

Armed robbery. I dread this time of year because for my stores, every robbery we’ve ever had occurred during this time of the year. We’ve had a handful of robberies during business hours and about the same number after-hours. While it’s very hard to prevent a robbery, there are a few steps you can train your team to do in order to get out alive and unharmed. Thankfully, we’ve never had an injury as our teams followed the steps below each time. I’ll close out my holiday safety tips with these quick tips on how to stay safe during a robbery.

  1. Stay calm.
  2. Comply with all demands
  3. Give them whatever they want, as quickly as possible
  4. Get them out of the store as quickly as possible
  5. Do not call the police with the gunman still in the store. If police arrive quickly, there could be a shoot-out, or a potential hostage situation
  6. Try to remember as much descriptive information as possible (hair color, race, eye color, tattoos)
  7. Do not touch anything after a robbery. You don’t want to contaminate the crime scene, as police may be able to obtain DNA or fingerprints from the safe, doors, or countertops                                    

How to Find a Good Security Consultant

meetingpic.In today’s business climate it’s impossible for an owner or manager to have all the knowledge and experience needed to run a successful company.  There’s too much new and changing information (i.e., technology, taxes, healthcare, government regulations, legal liability) for any one person to keep up, let alone have a working understanding.

That’s why even very small businesses are using temporary specialists more often than ever before.  Outside experts fill the many gaps which any business has: lawyer, marketer, accountant, consultant, business analyst or web designer.  Increasingly, one of the requirements for many companies is security consulting.

The growing need for risk assessments and security measures is an area of concern most companies have never had to face.  It’s an area which requires expertise beyond what the average manager or owner can be expected to have.  It just makes sense to outsource it. 

But, how do you find a good security consultant?  As any good security consultant will tell you — due diligence is the key.  To get you started here are a few tasks to do and questions to answer for each candidate.

* Interview more than 1 person, 3 is usually enough to find the right one.

* Do they welcome or hinder your due diligence?  A viable candidate will endorse your actions.   

* Check their references and credentials.  Also, depending on the project you have in mind, consider doing a background check.

* Evaluate and validate their work experience.  Do they have the expertise they claim to have?  There are many types of security issues.  Does their knowledge fit your problems? 

* Are they listening to you and your people?  Are they offering solutions before they understand the problems?  Are they trying to up-sell you?

* Do they demonstrate responsibility by following up when they say they will (i.e., bids, phone calls, appointments, texts, emails)?  If they’re not responsible when they’re trying to sell you, it usually gets worse during the project.

* Is there a contract?  There should be one that’s clear and easy to understand.

Security issues — workplace violence, cyber attacks and breaches, employee theft, shoplifting — are continuing to grow.  It’s time to think about how they affect your business and take steps to address them.  These are concerns that aren’t going to go away. 


Nicole Abbott is a professional writer who’s had over 100 articles published.  She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction.  She’s a coach, lecturer, trainer and facilitator.  She has conducted over 200 workshops, trainings, presentations, seminars and college classes. 

What To Do With Your Customer Feedback

image3-NEOBIZMAG

For retailers around the country and business in general, customer satisfaction is very important nowadays.  The internet has made customer complains known worldwide. An uploaded video can go viral without the company having control over it, and the damage it can inflict upon the company can be horrendous. What can you do to assure that you take customer complains or suggestions seriously? What can you do with them once you have the data?  For more about this topic follow the links below.


5 Cool Things You Can Do With Customer Feedback

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Time was when getting feedback from a customer was a process so complex, it was akin to getting blood out of a stone. Thankfully, we don’t live in those times.

Today, not only is feedback nothing more than an email away, but customers actively come to you with suggestions and ideas. In fact, theylove sharing their insights with you because they understand that the more feedback they give, the better your product becomes.

However, most of this feedback just ends up cooling its heels in hard drives, which is, well, tragic, considering all the good it can do. A motivational tool, a wall of love. . . the ideas are limited only by your imagination. Here are our top five cool things that you can spin off with customer feedback, to wow your customers and your own employees.


Are Customer Reviews Promoting Your E-Business Like They Should?

Like it or not, customer reviews are a fact of life — and their impact on your business is huge. Columnist Jeremy Smith explains how you can use this to your advantage to promote your brand.

Unless you’re just back from an extended stay in some parallel universe, you know that customer reviews are valuable to e-commerce and increasing online conversions. Even negative reviews can be helpful to you, as the purveyor of a product or service.

The value of online customer reviews can hardly be overstated, though perhaps it approaches being over-documented.


4 Ways to Make Your Customer Satisfaction Surveys Actionable

To truly understand customer feedback, you need to ask an important question: “Why?” The only way to do that: follow up.

“Please tell us how we did.”

A question like that can roll the eyes of even your company’s biggest fan.

For years, customer satisfaction (CSAT) surveys have been the bread-and-butter strategy for getting feedback.

But the big question is, are these surveys useful?

Many companies are frustrated by their surveys, in large part because they don’t know how to derive consistently actionable insights from the feedback they collect. Thousands of responses go into a database, emerging only as a graph that nobody wants to admit doesn’t drive any change.


Using Technology To Prevent Shoplifting

LPSI EVOLVE-Store Mobile AppThe busiest shopping season has begun. Along the many customers you expect this holiday season, you can expect the shoplifters as well.  Taking advantage of the many customers entering a store, the shoplifter sees this season as an opportunity to walk into a store and leaving with hundreds of dollars worth of merchandise without paying, and sometimes without getting stopped by security.  It is difficult for a loss prevention officer to keep track of all the customers entering and leaving the store, that’s why the technology you use to protect your store from shoplifters is as important as hiring loss prevention officers in the first place.  To read more about this and other topics follow the links below.


Using facial recognition to prevent shoplifting, workplace violence

Some retail stores in Kirkwood, Missouri are using facial recognition software supplied by Blue Line Technology to prevent shoplifting, according to a report by Fox2Now.

“If we recognize them as a suspicious character, we follow them around and we sort of hound them out of the store,” said Christopher Thau, the owner of a store called Christopher’s. “I hate to put it that way but that’s what we do.”

Since shoplifters often move from one store to the next, many store owners and managers help each other by distributing pictures of potential suspects.

Blue Line Technology provides facial recognition software to help police and businesses track potential threats of shoplifting.

The First Line Facial Recognition system alerts store managers regarding the presence of known shoplifters, providing advance warning for protection against shoplifting and fraud in checks and credit cards.


Blenheim businesses prepare for the shoplifting season

The festive season boom sees a surge shoplifters, shopkeepers and police say.

Shopkeepers and police are preparing for an expected surge in shoplifting during the busy festive season.

Farmers Blenheim store manager Karen Stevenson said the months of November and December were the worst time of the year for theft in department stores.

“Christmas is a bad time for it … It’s a huge problem in Blenheim.”

Police had received 23 reports of shoplifting in Marlborough since August 20.

Blenheim community constable Russ Smith said an increase in shoplifting was expected ahead of the holidays.

“Part of the reason is that stores are advertising flat out and have more stock. They’re a lot busier, the store staff are busier, and shoplifters take advantage of those factors.”

Police would patrol the Blenheim shopping district closer to Christmas in an attempt to deter shoplifters.

“That’s only part of what we do preventatively, and it’s as much to make sure people are behaving in the late nights,” Smith said.

Postie Plus Blenheim ex-employee Barbara Drummond said the size of department stores made it extremely difficult to keep an eye on customers, especially during busy times like the festive season.


Firm that teaches ‘life skills’ to suspected shoplifters extorts them, suit alleges

Debra Black insists she is “not a thief.”

She says she rolled her electric wheelchair out of the Goodwill Industries store in Tustin after inadvertently neglecting to pay for a few items. The pack of purple napkins, headband and small purse came to $6.97.

But once a security guard stopped her that day in March 2013, things got heated. Black, 64, said she was frightened into signing a confession and agreeing to complete a six-hour “life skills” course and pay a Utah company $500.

When Black did not pay, she received multiple calls and letters from Corrective Education Co., including this final warning: “Contact us immediately to prevent the filing of a criminal complaint.”

Black unsuccessfully sued the firm, which refers to itself as CEC, along with Monument Security Inc., contending they were debt collectors that had violated laws governing that industry.

On Monday, the San Francisco city attorney weighed in, filing a new lawsuit that alleges CEC’s practices violate the California business and professions code and amount to extortion and false imprisonment.

The suit seeks civil penalties as well as restitution for every Californian who has paid into the program. About 20,000 accused shoplifters are believed to have participated nationwide.


Should You Apprehend The Shoplifter?

shoplifting2According to the statistics by the National Association for Shoplifting prevention the habitual shoplifter steals 1.6 times a week. And although that is an alarming amount, the fact is that theft by employees surpasses theft by the outside shoplifter.  The amount they steal is alarmingly higher compared to what the outside shoplifter takes from the store. So how do you prepare your business to mitigate the loses it will suffer from employees and shoplifters alike? Is having up to date inventory data readily available one of the solutions? Is prosecuting the employee no matter the amount the way to go?  For more about this and other stories follow the links below.


To Stop Or Not to Stop the Shoplifter: Is This Still a Question?

A male shoplifting suspect has been coming into store 153 three times a week for as long as anybody can remember. Store management has even attributed this guy as a major cause of the store’s shrink woes that have put them on the corporation’s “target store” list for the last two inventory cycles. As the store’s loss prevention agent, you have tried to stop him in the past, but it seems like you have always been just one step behind him and unable to make the shoplifter apprehension.

“Today is going to be different,” you say to yourself.

You can feel it. Today he is finally going to get what’s coming to him, and, more importantly, your apprehension dry spell is going to end. No more excuses needed for the boss. Today you are going to be stopping the shoplifter that nobody else has been able to get.

You have spent the last ten minutes following the suspect through the store, tracking him carefully from the moment he entered. You know and understand the steps of the apprehension process. You have observed him approach, select, and conceal multiple computer accessories that you estimate to be worth over $200.


Seven things retail can teach us all about data security

TalkTalk’s Dido Harding isn’t the first CEO to receive advice from cyber experts safely installed on the This Morning sofa and she won’t be the last. The boardrooms of British Gas, Vodafone and Morrisons have all recently played data-breach bingo and we all now accept it’s ‘when’ not ‘if’.

But retailers have been dealing with theft for a very long time. They call it ‘shrinkage’ – when stock leaves a store by any non-legitimate route and surprisingly, shoplifting comes a distant second to theft by staff. Since retailers need staff they’ve had to concentrate on mitigation rather than eradication.

The information security community would do well to take heed here. The biggest tool most companies have against the insider threat – data theft by staff – is a strongly worded statement. Even then, access to information is so poor that management can’t deliver on any threats. Too much attention still goes on preventing the external attack – the shoplifter.


RETAIL SECURITY

Retail security is a term with two very different and distinct meanings in the retail environment. In one aspect, retail security is an outdated and understated term for a critical sales support function. In the early years of the profession, most companies called this aspect of the workforce the “Security” or “Protection” department. Security teams served as a real and visible force to combat losses in the stores. Uniformed guards would stand at the doors or walk the selling floors. Undercover security agents were eventually brought on to catch shoplifters. Security managers coordinated these efforts, and also handled internal theft issues. Programs typically assumed a reactive and one-dimensional approach; responding to issues as they occurred and working to keep the stores safe and secure. Unfortunately, while this reactionary approach was often expected and requested by retail leadership, it was not conducive to true retail success.

Over the years, responsibilities continued to increase, and these departments were looked at in a different way. It became increasingly apparent that in order to benefit the overall organization the industry would have to evolve, embracing the concepts of retail shrink reduction and incorporating concepts critical to the retail culture.


Shoplifting Prevention and Your Inventory

theft (11)Keeping track of your inventory this holiday season is not an easy task.  The time and work that this task takes is not easy for many managers to keep up with, nor something they relished doing.  But maintaining an accurate inventory is not only good to keep up with customers likes and dislikes, but to keep a closer eye if shoplifting is happening in your store.

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


Business Security: 10 Tips to Prevent Shoplifting

In 2010, shoplifting accounted for 31% of retail inventory loss, according to a University of Florida retail security survey. This loss cost retailers about $10.94 billion during that year, according to a Washington Post article about the survey. 

Items most commonly stolen include clothing, books, music, jewelry, watches, tires and car parts. “Everyone thinks about little Johnny stealing a pack of bubble gum, but there are also professional gangs that target stores and steal billions of dollars every year,” says Joseph LaRocca, an adviser for the National Retail Federation, in the article.

While security cameras can help identify suspects after a theft occurs, there’s plenty a retailer can do to prevent shoplifting from happening in the first place, according to the North Carolina Governor’s Crime Commission and the Specialty Retail Report.

  1. Greet customers as soon as they come into the store. Addressing customers removes their anonymity. Shoplifters are known to avoid stores with attentive salespeople

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.

However, if your store is messy, disorganized, or a maze to get through, it can be harder to notice that you’ve been “gotten” until it’s too late.

Security expert and founder of Crime Doctor, Chris McGoey recommends the following: “You want to keep all your merchandise “faced,” which means pulling your products to the edge of the shelf to create a solid wall of product. If someone sweeps the shelf, then it is easy to tell.”


Impact of retail theft: Costs customers, hurts business fuels drug trade

Shoplifting is a crime that happens often, but many people don’t often stop to think about its impact. The retailer suffers, shoppers pay more and police resources are expended.

Walmart is one of many stores that are frequently targeted by shoplifters.

By Zach Glenn
[email protected]

Posted Nov. 14, 2015 at 8:15 AM

Shoplifting is a crime that happens often, but many people don’t often stop to think about its impact. The retailer suffers, shoppers pay more and police resources are expended.

“From the law enforcement side (retail theft) can take up a lot of resources when it comes to investigations which can be problematic when there are other emergencies coming in and other cases that need worked on,” said Pennsylvania State Police spokesman Robert Hicks. “From a societal point, we all know when businesses lose money from theft that their prices increase which impacts all of us as consumers.”

Police calls

Last year, Walmart reported that around 1 percent of its total profits had been lost to shoplifting — for a total of $3 billion. Greg Foran, head of U.S. Walmart operations, said in a statement earlier this year that without theft, prices could be lower.

Other stores targeted by shoplifters sell items that are easy to resell, such as scrap metal from home improvement stores like Lowe’s or Home Depot and movies, music and video games from electronics stores like Best Buy.


Do you have a Business “Go Kit”?

shopliftingMany folks have go kits set up so that in the event of a storm, natural disaster or civil disturbance, they can grab their family and the Go Kit and be covered. Personal Go Kits tend to have copies of documents such as drivers licenses, birth certificates, passports, deeds…. But Go Kits can also include items to survive such as water, food, medicines, flashlights, a weapon…. These concepts used to be confined to those among us that are expecting a doom’s day interruption or ending to our society.

However, with the complexity of our society come other issues. How would you easily prove that a house belongs to you, if the area was damaged beyond recognition? Say a hurricane, flood, wild fire or earthquake? What happens if the official records are also lost? Are you going to depend on others to put your life back together again?

The same applies to your business. How will you prove to your insurance company that your inventory is valued at $XXXX if your records all disappear in a fire? The same applies to payroll records and the like. You need to have a BUSINESS Go Kit!

Thankfully this is simpler than you may think. Consider keeping your data files in a cloud environment that has multiple backups on servers that are located in multiple locations around the US. If they are on one server located in New Orleans or Miami, I would re-think that strategy. We use Google’s cloud. It costs us $5/month per employee and the redundant backups are on five separate servers in five different geographical locations in the United States.

Scan in important documents such as business licenses, insurance documents, titles, vendor documents, etc. Put them in your cloud. That way you have access wherever you are. It might be a good idea to put photos of your business, inventory, equipment and more on there, every six months or annually. Have your backups of accounting data such as Quick Books reside their also. All of this plus payroll records, taxes and more could be rebuilt but why would you want to take the time to do this when it is simply a matter of changing your habits?

Oh but “it will never happen to me” or “I will get to that tomorrow” are favorite phrases we all like to use to put something off that we know should be done. It will happen to you and it will happen “tomorrow”. An earthquake may never threaten your business but then again a data loss, PC crash probably will.

Unless you are wealthy beyond belief, then like the rest of us that are not, we depend on our business to provide for our families and life style. We will need to restore that cash flow in the quickest manner possible and with the least amount of effort to get there. Your business Go Kit will help make that happen.

It is also a good idea to keep a few extra cases of water, blankets, candles and canned soup on hand. I may be miserable but being warm, having a full stomach and a little light to read by will make it a little less miserable.


COPYING EMPLOYEE THEFT

shoplifting1Quite often, I like to showcase a new theft trend, or perhaps a funnier shoplifter story for a bit of humor. This month is no different. We’ve talked about some pretty serious issues on the past two articles and now I just want to share a story that goes along with that employee theft piece. It’s something I bet each and every one of you will react to immediately after reading.

At one point last year, our company finally gave us (Regional LP Managers) access to our store’s P&L statements. You would think we would have already had this… Better late than never I suppose. It’s a great tool for me to see the overall profitability of the store. I can use my expertise to help the store reduces losses/expenses and to become a more profitable business. One store in particular stuck out. They were over their office supply budget by thousands of dollars. Odd.

Most stores spent between $500-$1000 a month on office supplies like toner, paper, pens and pencils. This particular store was spending triple that; at least $3k each month. I met with the store manager during a visit and asked about that line item. He was just as perplexed. Where were these office supplies going each and every month? We devised a plan. We initiated a “buy back” program for all employees. We put up signs in the offices and common areas asking all employees to clear their lockers, cars and homes of any supplies they may have taken home. It happens, no big deal. When the employees returned the items, we weighed them on a digital scale. The employee with the heaviest return received a gift card. Well, it worked. We had pens and pencils for the next two years. Next month, the store still spent $2k in supplies.

Baffled, I reached out to our accounting department. Surely, there had to be an error somewhere. Perhaps a line item was being mixed in where it shouldn’t be. It took a few days, but I convinced one of the accountants to give me an itemized breakdown of all office supplies the store had ordered over the past year. Toner. The store was ordering toner. Lots and lots of toner.

I questioned the managers and personally searched the store. Over the past six months, the store had ordered nearly 25 replacement toner cartridges. Couldn’t find them, and couldn’t explain why the store was ordering so many. I decided to ask the administrative assistant. A kind of last ditch effort to explain why the store kept ordering copy toner. 15 minutes into my conversation and I had a theft confession.

Toner, apparently, will resell very easily online, especially if you mark it down about 50%. The administrative assistant was ordering toner, then simply walking out the front door with it. She’d post it on eBay and was making a pretty healthy profit from it. It was a first for our LP department. No one else had ever, in my company’s history, uncovered this form of theft. It was a bit unusual, but still cost us well over $12k. My advice to you; look over your office supply orders.


EMPLOYEE THEFT IN THE 4TH QUARTER

theft (2)It always seems that as we get into the 4th quarter, cases of internal theft seem to rise. Every year for the past 8, I’ve dreaded the case load that I know will be coming in the next three months. While it is impossible for me to predict, with any certainty, internal theft cases at any point in the year, I can always guarantee that each one of my 29 stores will have at least one case in the next three months. Good thing I’ve got my bags packed.

I would almost bet that I’m not alone here. Those of you reading this right now have experienced the same thing. Yeah, sure, we see employee theft cases all year long, but why do they seem to increase during the end of the year? Are more people just desperate to satisfy those wish-lists? Is it driven by greed for the season’s hot new electronics? Is it our temporary associates, who may not receive a background check? Probably a little bit of all of those.

Holidays bring pressure, especially if you have a family. Even more so if you are struggling financially. Those children surely need a new tablet, even though rent may take up an entire 2 weeks’ salary. Let’s not forget about utilities and groceries, clothes and other essentials. If someone is desperate enough, Santa will pass, but it will be on your dime. I grew up in poverty. My father worked long hours for minimum wage, and my mother raised 3 kids. When the holidays came around, I can remember my mother taking on temp work and my dad taking on another job. Nowadays, it seems as that type of work ethic is completely unheard of. Why work yourself to death, when you could just steal what you want.

Our employees also have greater access to product. Even before that new tablet hits the display, an employee has to take it off the delivery truck. Chances are, these receiving employees are grossly unsupervised, and can simply cart it out the back door. Just last week, I had a case where two guys were doing just that. They had bilked the store for nearly $10k in product that never made it to the sales floor. The managers learned a very hard lesson about supervision, as well as back door procedures. Employees also learn our system and understand where our weaknesses are. Last year (same store as the first example), the hard-goods employees (all 10 of them) were taking cash payments from customers and loading up bulk items like treadmills, ride-on toys, and basketball goals. The store has a procedure in place for a supervisor to verify all receipts prior to bulk items being taken out. The store was not following this program and it costs them well over $75k.

Temporary workers are another pain in my side. Obviously, we need the additional support in the 4th quarter. Hiring is essential, but hiring the right person is even more so. My company waives the background check process for temporary hires. It’s the reason I’m bald at 28. There are better alternatives out there. I know a ton of other retailers also have this practice. It’s not good for business. Yes, these people are only working for you for a limited amount of time, but they can do serious damage in that time. Just last year, two temporary cashiers embezzled nearly $30k in one of my stores by processing fraudulent return transactions. Upon their arrest, we saw on their criminal records that each had multiple arrests for embezzlement and shoplifting. They would have never been offered employment outside of the temp hire period.

There is no quick fix, or simple solution to employee theft. As managers and business owners, you have to take proactive steps to minimize your losses. Employees will always find ways to steal from you; it’s your job to make it increasingly difficult for them to do so. The key to a strong 4th quarter is clearing your store of product, just not through the backdoors.