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FEATURE STORY
Stop, Thief!
How to put the squeeze on shoplifting shrink
by Maura Keller
Perhaps you’ve discovered a small percentage of your inventory slowly disappearing each week. Or maybe you’ve caught a few would-be customers shoplifting small items from your store. As a tobacco retailer, it’s likely that few issues stand out in your mind more than the safety and security of your employees and products, and the health and well being of your bottom line. The good news? For the majority of retail store operators and owners, today’s security experts offer advice that will put your valuables beyond the reach of criminals.
Shoplifting losses vary by store type, but can account for about one-third of the total inventory shrinkage. It is estimated that shoplifting occurs 330 to 440 million times per year at a loss of $10 to $13 billion. “Shoplifters come in all shapes and sizes, ages and sexes, and vary in ethnic background, education and economic status,” says Chris McGoey, president of McGoey Security Consulting and host of the Crime Doctor Web site. “Some shoplifters steal for the excitement, some steal out of desire, some steal for need, some steal out of peer pressure, and some steal because it is simply a business transaction to them.”
As McGoey explains, most shoplifters are amateurs. “However, there are growing numbers of people who make their living by stealing from retail stores,” he says. “Amateur shoplifters can be highly skilled and some steal almost every day, but don’t do it to make a living. Most amateurs are opportunistic, crude in their methods and are detected more often than others. Professional shoplifters run the gamut from being highly skilled to thug-like. Some professionals work in teams or use elaborate distraction scenarios.”
So that’s why more and more retailers are turning their attention to preventing shoplifting. “It makes good business sense to put some controls in place that let potential shoplifters and dishonest employees know that ownership/management is aware that stealing is a potential problem,” says Robert L. DiLonardo, principal of Retail Consulting LLC, which advises retailers on what type of security will best meet their needs. ‘While there may not be significant losses now, there could be at some point in the future. It’s better to be aware in advance and set up some rudimentary deterrences, than discover at inventory time that a significant loss has occurred.”
And when it comes to shoplifting, the size of the store doesn’t matter. “If the merchandise available is desirable, and/or can be easily converted into cash, any store size is a target,” DiLonardo says. “Thieves generally know that ‘mom and pop’ stores typically don’t invest too heavily in security programs and products. They attack the places with low risk and the most ‘bang for the buck,’ so to speak.”
Security experts recommend thinking like a shoplifter when considering security needs for your business. Anyone from a friend to a member of your staff can help play the role to point out shortcomings in your theft-deterrent plan. Then you can establish procedures or seek products to fill in the gaps.
Technology know-how 
When retail store operators are deciding how to spend money for security, they often turn to the high-profile new products and technology-based services that are driving the security industry’s growth.
Over the last several years, security technology has changed significantly. In fact, digital recording technology is making a big impact in closed circuit television (CCTV) surveillance applications—providing crisper images and the ability to scan video far more quickly. And with the advent of “intelligent video,” c-store operators can now integrate their existing POS systems with interactive video monitoring to observe customer traffic patterns, count customers entering the store and determine success of promotional displays.
“The least expensive deterrent is good, sound training of sales personnel in the art of customer contact,” DiLonardo says. “This training could include information on what to look for (suspicious behavior), what to do in case there is suspicious activity. The best product to deter shoplifters, in my opinion, is electronic article surveillance. Statistics show that EAS (properly managed) can reduce inventory shortage from 15 to 75 percent.” Packaged products can be tagged with an electronic circuit that sets off an alarm as it passes through the detection equipment at the entrance/exit. The expense depends upon how many exits there are, and how many products are to be protected.
“An adhesive tag costs around 4 cents, and a system might cost about $2,500,” says DiLonardo. “So, it has become fairly cost effective. Other methods might be locked fixtures, or merchandising high risk products near the POS, so that they can be continually observed by sales associates.”
DiLonardo says video monitoring and EAS tags attached to each product are good deterrents, provided that the owner/manager takes the time to review the video and makes sure that employees know they can be observed. One effective technique is to review a video and praise an employee for a positive situation that has been observed. In that way, employees know that they are being observed and that the observation isn’t necessarily for theft, but could very well be to help run the business more effectively.
Although the retail security industry has your best interests at heart, make sure to do your homework before hiring a security company to install and monitor any security system. You’ll be entrusting the safety of your business and your employees to this company, so you want to be confident about its qualifications and reputation.
Maintain control
While technology is often paramount in helping defend against would-be thieves, there are some simple approaches you can take to ensure the security of your products.
| Avoid false arrest |
According to security expert Chris McGoey, there
are some key steps you should follow to ensure the person you suspect of shoplifting is shoplifting and prevent false arrest claims:
- You must see the shoplifter approach your merchandise
- You must see the shoplifter select your merchandise
- You must see the shoplifter conceal, carry away or convert your merchandise
- You must maintain continuous observation of the shoplifter
- You must see the shoplifter fail to pay for the merchandise
- You must approach the shoplifter outside of the store
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According to McGoey, making a concerted effort to greet every customer as they immediately enter the store is vital in maintaining a sense of control of your store. You should have some sort of device that signals the entrance and exit of customers, such as a bell or electronic signal on the door. Even if your employee is assisting a customer, acknowledge every face that enters your business. A simple “hello” will suffice, or “I’ll be right with you” or some variation on that theme. “By recognizing each customer, you are enforcing the idea that you are aware of their presence and may be watching them,” McGoey says.
You can also make the store more attractive to customers and less attractive to shoplifters by:
- Keeping your store clean, tidy and well-lit
- Getting away from the sales counter when there are no customers in the store
- Being aware of cars parked across the street or off to one side of the lot
- Looking for anyone who may be watching the store or loitering in or around it
- Knowing the location of phones or available help outside the premises
Experts also recommend that you strategically place mirrors both inside and outside the store, as well as in blind alleys and corners. The most effective kind of mirror to have is a curved security mirror that will reflect activity from all directions. Just the presence of a surveillance item may be enough to let customers know that they are being observed. Take a moment to examine your store’s layout, and place your mirrors in those spots that cannot be seen clearly from your employees’ vantage points.
Communication is key
Experts from the National Crime Prevention Council recommend that store owners pre-program phones to 9-1-1 or the local police emergency number. Also be sure to install phones in isolated areas, such as in back storerooms. Alarm systems are imperative—no matter how small a store is. Like its telephone counterparts, alarm buttons should also be installed in a variety of places within a store. Would-be shoplifters or robbers expect alarm buttons to be near a register, so try to place them away from the counter area but where your employees can reach them. An alarm should not only ring in the store where it is installed, but also in a neighboring business.
Know thy neighbors
Working alone does not necessarily mean an individual employee is at risk. If your store is in a strip mall or enclosed mall, employees need to feel confident and comfortable contacting neighboring stores and businesses if they need help. You can also create a “code” system in which neighboring businesses can call each other if they need help with a disruptive customer or a patron who makes them feel uneasy.
The National Retailers Federation recommends sharing the responsibility for awareness by setting up a business watch program, similar to a neighborhood watch program. Share information with neighboring businesses when suspicious incidents occur. Also, develop a buddy system for employees to get to bus stops or their cars when it’s dark.
Defend yourself
According to the National Crime Prevention Council, retail owners and their employees need to determine the types of physical attacks that are most likely to occur in their retail environment. Employees need to pay close attention to neighboring businesses that report physical attacks—when and how they occurred and what the perpetrator(s) looked like.
Remember that retail stores are more likely to be attacked at opening or closing times. Suggested control measures include:
- Scheduling more than one staff member for opening and closing times
- Developing opening and closing procedures that focus on employees’ personal safety to minimize risks
- Establishing security procedures for employees working during opening and closing times, including safe areas that employees can go to in the case of an emergency
- Ensuring employees have an effective means of communication to summon help in case of an emergency.
Screening employees
According to Kim Kerr, vice president of screening services at Lexis Nexus, an international company that specializes in risk management and other business issues, 50 percent of all shrinkage can be attributed to internal sources. Those internal losses can add up to $1,000 or more per employee committing the crime. What’s more, 33 percent of applicants are not factual about their work or educational history when applying for jobs.
To help retailers curb the incidence of internal theft and ensure they hire honest employees, LexisNexus created a pre-employment screening solution that helps a potential employer determine the background and history of would-be hires. Most recently, the company expanded its screening services to include products that meet the screening needs for any sized company as well as specialized screening options to more adequately meet the needs of employees.
“When it comes to screening or background checks, you want to cast a wide net, examining national criminal files and doing county searches.” Kerr says. This includes conducting identity verification to ensure their social security number, address, and other identifying information is correct. It also thoroughly evaluates any criminal history, as well as verifying employment and educational history.”
“During the interview process, the employers should inform the candidate that their hiring is contingent on a successful passing of a background check,” Kerr says. “You also include a waiver of consent to do a background check, as part of the application forms.” While more extensive county and national checks may take 24 to 48 hours to complete, some Web-based aspects of the technology allow initial background checks to be done with the person sitting right there. “That helps clear up any initial things that emerge,” Kerr says.
For more information, visit:
www.lexisnexus.com/screening
www.shopliftingprevention.org
www.crimedoctor.com
www.retailconsultingllc.com |
