Some retailers have a false sense of being secure by installing a CCTV system to deter retail theft. CCTV systems are a powerful tool, but like other tools in the fight against theft they have limitations. Retailers come to believe that now that they have installed a CCTV system that their retail theft will stop with little or no further effort on their part. That belief may actually cost them more money in the long run.
Here’s why: CCTV systems are passive in nature. They record 24/7 but normally they are not watched live. Certainly a small business owner may have a monitor and glance at it during the day. However, unless a person or incident is brought to their attention that is the extent of it. There may even be a monitor that a cashier can use to observe. But really how much time does that cashier spend watching? Most likely very little, especially after the novelty has worn off.
So what do we do? First you have to set your expectations correctly. CCTV is a great tool used to deter, stop and catch several types of retail theft including: employee theft, shoplifting and vendor fraud. But, keeping in mind that CCTV is a PASIVE system you must remember that everyone else knows this also including employees, shoplifters and vendors. These people know over time that the system is not actively being watched. Most cases it only used to look back at an incident. They are aware that you do not have the payroll to actively observe. In most cases they will test this to see if you are watching.
I will present the solutions to each of these in a following blog.
Contact us if you want more information or call 1.770.426.0547
You have a CCTV system or are going to purchase one. Your retail theft problems are not over when the installer walks out the door. CCTV is like any other tool it is not effective unless you use it properly. To stop retail theft you must do the following:
Employee Theft – Make the CCTV system more of an “active” tool rather than a passive one. Consider trying this: bring a different employee in every few weeks and go over with them something you observed. Example, bring in a cashier, show them a short video of them working the POS and checking out a few customers. Complement them! The speed at which they processed the customers through their line, how friendly they are and that they appear to be engaging in a sincere manner. Make it ALL about complements. They will walk out of your office feeling good but they know that you are watching. This should not be a big surprise, YOU HAVE A CAMERA SYSTEM! Do you think that this will get around to other employees? Of course it will.
Shoplifting – Signs that tell shoplifters you have a CCTV system or that it is “live” are OK but you cannot rely on this to be the primary way to make the system appear to be active. Wait until a customer or a suspected shoplifter is in a concealed area or acting odd and then approach them. “I noticed on our camera system that you seem to need some help. Can I help you with….”? Do this enough and word gets around.
Vendor’s – Combine the above techniques for employee theft and shoplifting. Ask the vendor or delivery person into your office and with that camera or clip of video playing where they can see it ask them about a issue or discrepancy or issue. Consider positive comments such as “I noticed that you were working carefully and paying close attention to what you delivered. Thank you.” An e-mail with a short video clip to their supervisor or upper management and complementing them on the work this person is doing. That information will spread.
CCTV ability to prevent retail theft is unlimited if you use it in “active mode”!
Vendors who are the very people that supply you with merchandise have stolen from retailers. I am not saying that every vendor will do this. Most vendors are working hard trying to earn and keep your business. However, vendor fraud results in approximately 5% of retail loss.
How does this happen? They are a business. They may have employees that are stealing and this could affect you. Say you are supposed to get 50 items in a carton. But an employee thief at the vendor’s facility only packs 48 to a carton in your order. They take the stolen items out and put it in the trash then come back later and get them out of the dumpster.
Sound crazy? We have done many of these types of retail loss theft investigations. If your employee is only counting in the cartons and not counting the contents you are putting money in that “piggy bank” of the thief at your expense.
There have been some cases where the vendor them self will short an order. Don’t catch it and they get paid in full at your expense. I have caught several very large, well known businesses doing this.
How do you stop this? Receiving must fully piece count every shipment. A supervisor should then do a spot audit of approximately 10% of the order.
Contact us today for more information
If shoplifting is the second largest area of retail loss, how do you fight it?
Training!!!. If you are not teaching your associates how to prevent shoplifting to begin with you will never, ever succeed as a retailer. The key is the way they are trained. The main focus should not be on catching the shoplifter.
Even though this is important, prevention is much more profitable and will lower retail loss.
Prevention training involves the actual approach to a suspected shoplifter. It is simple, can be entertaining as you drive the shoplifter insane and send them down the road to someone else who is doing nothing but watching their revenue walk out the door. The approach is different for each situation. Every employee that works the sales floor should be trained in this method. This should also be made a job duty. If you do this you will decrease your shoplifting losses. You do not need to have specialized employee, be a loss prevention or security expert to approach a suspected shoplifter.
Don’t be the store down the road that is watching their revenue walk out the door.
Over 60% of shoplifters steal from the same store when they get away with it the first time. Generally the store culture made them feel comfortable. This makes sense. If we create environments where the shoplifter is relaxed enough to continue they will also tell their friends. Your store will then attract more shoplifters.
Once caught, few shoplifters will return to the same store to make another attempt. The key is to deter them. If that doesn’t work make them feel very uncomfortable once they do pick up merchandise and attempt to conceal it or catch them. Checkpoint anti shoplifting systems handle all three levels, deterrence, attempt and catching the shoplifter.
Habitual shoplifters, after being apprehended, do return to the same store when there is no Electronic Article Surveillance (EAS) system in place. This is because the chance of being caught a second time is only 2%. Shoplifters want your merchandise either to keep or sell. The goal is to make them uncomfortable enough or stop them down completely. Send them down the street to another retailer that is not protecting themselves. You’re anti shoplifting efforts will be noticed among shoplifters.
For more information contact LPSI or call 1.770.426.0547
